Lucid Motors, the electric vehicle maker, recently reported its first-quarter results, which showed a mix of positive and negative outcomes. Despite reporting revenue of $172.7 million, surpassing expectations and showing a 16% increase from the previous year, the company also reported a wider-than-expected loss. The loss per share came in at $0.30, higher than estimates, with an adjusted EBITDA loss of $598.4 million.
However, Lucid CEO Peter Rawlinson remains optimistic about the company’s future, stating that sales momentum is building and confirming that the Gravity SUV is still on track for a 2024 debut. The company also announced that it produced 1,728 vehicles and delivered 1,967 vehicles in the first quarter, with plans to produce 9,000 vehicles in 2024.
Despite concerns about the impact of recent EV price cuts on margins, Lucid’s interim CFO Gagan Dhingra highlighted cost optimization initiatives and technology advancements that have helped improve gross margins. The company also worked with suppliers to reduce costs and improve margins.
Investors are keeping an eye on Lucid’s capital expenses, which totaled $198.2 million in the quarter and are expected to reach $1.5 billion in 2024. Rawlinson expressed confidence that these investments in production activities, particularly for the Gravity SUV, will pay off in the long run.
With $4.62 billion in cash and cash equivalents on hand, Lucid is well-positioned to navigate the challenges ahead. The company recently secured a $1 billion investment from its majority shareholder, Ayar Third Investment Company, an affiliate of Saudi Arabia’s Public Investment Fund. Rawlinson emphasized the strategic partnership with PIF and expressed confidence in Lucid’s technology and future success.
