A sign is posted on the exterior of Lucid’s headquarters in an aerial photo on March 29, 2023 in Newark, California. Electric vehicle maker Lucid announced plans to lay off 1,300 employees, 18 percent of its workforce, as part of a restructuring plan.
Justin Sullivan | Getty Images
Manufacturer of luxury electric vehicles Lucid group on Monday reported expanding first-quarter losses but said it still had enough cash to continue operations next year.
Following the news, shares fell over 8% in after-hours trading.
“We are on track to produce over 10,000 vehicles by 2023, and company-wide initiatives are underway that will allow Lucid to move to higher volumes when market conditions allow,” CEO Peter Rawlinson said Monday. Lucid in February forecast production of 10,000 to 14,000 vehicles in 2023.
Here are the key numbers from Lucid’s first-quarter earnings report, along with Wall Street consensus estimates as reported by Refinitiv:
Analysts polled by Refinitiv were expecting a loss of 41 cents per share, but it wasn’t immediately clear if the reported results were comparable to those estimates.
Lucid’s net loss for the first quarter was $779.5 million, much larger than the $81.3 million net loss reported in the first quarter of 2022 when production of the Air was still ramping up. However, revenue increased year-over-year to $149.4 million from $57.7 million in the year-ago quarter.
Lucid ended the first quarter with approximately $3.4 billion in cash and approximately $700 million in available credit lines. Chief Financial Officer Sherry House said the cash should be sufficient to fund the company through at least the second quarter of 2024.
Lucid had approximately $4.4 billion in cash and another $500 million in debt at the end of 2022.
Lucid recently moved to save cash. It said in March it would cut about 18% of its workforce, some 1,300 workers, to cut spending.
The company is still battling demand concerns.
The company’s expected 2023 production of “over 10,000” Air sedans is well below the “over 28,000” reservations it recorded in its fourth-quarter earnings report in February. And in April, Lucid said it produced 2,314 Airs in the first quarter while delivering just 1,406 to customers during that period, a gap the company blamed on a “slow January” and changes to the US government’s EV tax credits .
In another sign that demand for Air may be weak, Lucid declined to provide an updated reservation number on Monday.
Lucid said on April 25 that its next model, a large electric SUV called the Gravity, is on track to start production in 2024. It plans to unveil the Gravity later this year.
This story evolves. Please check again for updates.
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