Lucid Group just experienced its best quarter to date, at least delivery-wise. The luxury EV start up, which released its earnings results on Monday, delivered 1,967 vehicles, outpacing its production for the quarter (1,728 vehicles), a 40% improvement year-over-year.
CEO Peter Rawlinson said the lowered production, which was down 28% compared to last quarter, was an “active decision” as the company tries to be more cost-conscious but still expects to stick to its yearly production guidance of 9,000 vehicles. However, CFO Gagan Dhingra later added that Lucid would “prudently manage and adjust our production to meet our sales and delivery needs.”
Brand awareness, one of Lucid’s key strategies, also increased in the quarter, according to Rawlinson. Lucid Air, the company’s flagship vehicle, was named the best luxury electric car by US and World Report for its third consecutive year and is the only EV to have done so.
“We surpassed 12,000 vehicles on the road in Q1, which takes us nicely past the critical threshold into boosting word-of-mouth awareness,” Rawlison said.
The earnings report also had Lucid executives reiterate plans for its upcoming SUV, the Lucid Gravity, which is still on track to enter production late this year. The vehicle, which seats seven and has a max range of 440 miles, is expected to start under $80,000 and could represent a significant change in Lucid’s total addressable market.
Alongside reassurance about Gravity, Rawlinson hinted at an upcoming, high-volume midsized platform, which he indicated would start production in late 2026. He called it a “game changer” as the company looks to scale up and turn a profit. The mystery vehicle is projected to be the cheapest in the lineup yet, with a possible starting price under $50,000. Lucid’s current lowest-priced vehicle is the Air Pure RWD, which starts at $69,900.
But, while executives have a bright vision for Lucid’s future, its current financials dim the picture: Although revenue improved roughly 10% quarter over quarter, it was still off by nearly $10 million from analyst expectations, and R&D expenses were up 17% sequentially.
Earlier this year, Lucid received $1 billion from its major shareholder Saudi PIF through private placement, but the cash infusion was almost entirely offset by its $730 million in operating expenses. Although capital expenditures came in at $198 million, that number is projected to go up as leaders expect to spend $1.5 billion in CapEx this year.
Shares of Lucid (Ticker: LCID) have been on a downward trend over the past six months, hitting an all-time low of $2.29 per share in April 2024. Lucid reported earnings after the bell on Monday, closing at $3.05 per share, and opening at $2.80 per share the next day. As of this writing, its share price sits at $2.64, putting its market capitalization at just over $6 billion.
