Lucid Announces First Quarter 2024 Financial Results
Lucid Group, Inc. announced its first quarter 2024 financial results, reporting a revenue of $172.7 million and delivering 1,967 vehicles. The company raised $1.0 billion via a private placement to an affiliate of the Public Investment Fund and ended the quarter with approximately $5.03 billion in total liquidity. With plans to manufacture around 9,000 vehicles in 2024, Lucid is optimistic about its sales momentum and cost optimization programs, aiming to become a key player in the electric vehicle market.
Delivered 1,967 vehicles in Q1, up 39.9% compared to Q1 2023
Raised $1.0 billion via private placement to an affiliate of the Public Investment Fund
Ended the quarter with approximately $5.03 billion of total liquidity
Lucid expects to manufacture approximately 9,000 vehicles in 2024
Focus on cost optimization programs and growth in the electric vehicle market
Q1 revenue of $172.7 million may not meet market expectations
Competition in the electric vehicle market could impact sales and market share
Dependency on partnerships like the one with the Public Investment Fund for financing
Insights
Analyzing Lucid's first-quarter report, several financial metrics stand out. The production output of 1,728 vehicles is noteworthy, given the context of the automotive industry’s ongoing supply chain challenges. The reported
Furthermore, the successful raise of
From a market perspective, the increase in vehicle production and deliveries aligns with a broader trend of consumer transition towards electric vehicles (EVs). Lucid's ambitious goal to produce the 'best SUV in the world' suggests it is targeting premium segments of the EV market, where brand and product quality are vital differentiators. The company's partnership with the PIF may also open up strategic avenues for expansion and strengthens its positioning within the competitive landscape.
Investors should take note of the company's sales momentum and its continuous focus on cost discipline. As Lucid enters what they call a 'transformational phase,' it will be interesting to observe how their cost optimization programs will materialize in terms of reducing the cost of goods sold and operating expenses, thereby potentially improving margins over time.
The automotive industry has been facing significant headwinds with supply chain disruptions, which makes Lucid’s reported vehicle production and delivery numbers commendable. Lucid's emphasis on in-house technology development is a strategic approach that could differentiate them from competitors in the long term. This vertically integrated model may offer more control over the production process and cost efficiencies. However, it typically requires substantial upfront capital investment, which Lucid appears to be addressing with its latest financing round.
Their partnership with the PIF not only bolsters their financial position but also provides a vote of confidence to the market regarding Lucid's potential. The push towards an advanced and potentially best-in-class SUV could capture a significant share in a lucrative market segment, but it also subjects the company to the risks associated with high consumer expectations and the intense competition with established luxury vehicle manufacturers.
- Produced 1,728 vehicles in Q1; on track for annual production of approximately 9,000 vehicles
- Delivered 1,967 vehicles in Q1, up
39.9% compared to Q1 2023 - Q1 revenue of
$172.7 million - Successfully raised
$1.0 billion - Ended the quarter with approximately
$5.03 billion
Lucid reported Q1 revenue of
"I believe there are two factors that set Lucid apart – our superior, in-house technology and the partnership with the PIF," said Peter Rawlinson, CEO and CTO at Lucid. "Our sales momentum is building, our focus upon cost remains relentless, and we believe Gravity is on track to become the best SUV in the world."
"We continue to make significant progress on our cost optimization programs," said Gagan Dhingra, Interim Chief Financial Officer and Principal Accounting Officer at Lucid. "We're focused on significant growth as we enter the next transformational phase of Lucid's end markets while simultaneously driving cost discipline."
Lucid will host a conference call for analysts and investors at 2:30 P.M. PT / 5:30 P.M. ET on May 6, 2024. The live webcast of the conference call will be available on the Investor Relations website at ir.lucidmotors.com. Following the completion of the call, a replay will be available on the same website. Lucid uses its ir.lucidmotors.com website as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.
About Lucid Group
Lucid's mission is to inspire the adoption of sustainable energy by creating advanced technologies and the most captivating luxury electric vehicles centered around the human experience. The Company's first car, the Air, is a state-of-the-art luxury sedan with a
Investor Relations Contact
Media Contact
Trademarks
This communication contains trademarks, service marks, trade names and copyrights of Lucid Group, Inc. and its subsidiaries and other companies, which are the property of their respective owners.
Forward Looking Statements
This communication includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "estimate," "plan," "project," "forecast," "intend," "will," "shall," "expect," "anticipate," "believe," "seek," "target," "continue," "could," "may," "might," "possible," "potential," "predict" or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding financial and operating outlook and guidance, future capital expenditures and other operating expenses, ability to control costs, expectations and timing related to commercial product launches, including the Gravity SUV and Midsize programs, production and delivery volumes, expectations regarding market opportunities and demand for Lucid's products, the range and performance of Lucid's vehicles, plans and expectations regarding the Gravity SUV program, including performance, driving range, features, specifications, and potential impact on markets, plans and expectations regarding Lucid's software, plans and expectations regarding Lucid's systems approach to the design of the vehicles, plans and expectations regarding Lucid's integration with North American Charging Standard, including timing and benefits, estimate of the length of time Lucid's existing cash, cash equivalents and investments will be sufficient to fund planned operations, plans and expectations regarding its future capital raises and funding strategy, the timing of vehicle deliveries, plans and expectations regarding future manufacturing capabilities and facilities, studio and service center openings, ability to mitigate supply chain and logistics risks, plans and expectations regarding Lucid's AMP-1 and AMP-2 manufacturing facilities, including potential benefits, ability to vertically integrate production processes, future sales channels and strategies, future market launches and international expansion, plans and expectations regarding the purchase agreement with the government of
Non-GAAP Financial Measures and Key Business Metrics
Condensed consolidated financial information has been presented in accordance with US GAAP ("GAAP") as well as on a non-GAAP basis to supplement our condensed consolidated financial results. Lucid's non-GAAP financial measures include Adjusted EBITDA and Free Cash Flow which are discussed below.
Adjusted EBITDA is defined as net loss before (1) interest expense, (2) interest income, (3) provision for income taxes, (4) depreciation and amortization, (5) change in fair value of common stock warrant liability, (6) change in fair value of equity securities of a related party, (7) stock-based compensation, and (8) restructuring charges. Lucid believes that Adjusted EBITDA provides useful information to Lucid's management and investors about Lucid's financial performance. Free Cash Flow is defined as net cash used in operating activities less capital expenditures. Lucid believes that Free Cash Flow provides useful information to Lucid's management and investors about the amount of cash generated by the business after necessary capital expenditures.
These non-GAAP financial measures facilitate management's internal comparisons to Lucid's historical performance. Management believes that it is useful to supplement its GAAP financial statements with this non-GAAP information because management uses such information internally for its operating, budgeting, and financial planning purposes. Management also believes that presentation of the non-GAAP financial measures provides useful information to Lucid's investors regarding measures of our financial condition and results of operations that Lucid uses to run the business and therefore allows investors to better understand Lucid's performance. However, these non-GAAP financial and key performance measures have limitations as analytical tools and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP.
Non-GAAP information is not prepared under a comprehensive set of accounting rules and therefore, should only be read in conjunction with financial information reported under GAAP when understanding Lucid's operating performance. In addition, other companies, including companies in Lucid's industry, may calculate non-GAAP financial measures and key performance measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of Lucid's non-GAAP financial measures and key performance measures as tools for comparison. A reconciliation between GAAP and non-GAAP financial information is presented below.
LUCID GROUP, INC. | ||||
March 31, | December 31, | |||
ASSETS | ||||
Current assets: | ||||
Cash and cash equivalents | $ 2,169,489 | $ 1,369,947 | ||
Short-term investments | 1,824,900 | 2,489,798 | ||
Accounts receivable, net (including | 126,930 | 51,822 | ||
Inventory | 565,653 | 696,236 | ||
Prepaid expenses | 72,135 | 69,682 | ||
Other current assets | 74,890 | 79,670 | ||
Total current assets | 4,833,997 | 4,757,155 | ||
Property, plant and equipment, net | 2,971,601 | 2,810,867 | ||
Right-of-use assets | 217,699 | 221,508 | ||
Long-term investments | 627,591 | 461,029 | ||
Other noncurrent assets | 185,352 | 180,626 | ||
Investments in equity securities of a related party | 60,801 | 81,533 | ||
TOTAL ASSETS | $ 8,897,041 | $ 8,512,718 | ||
LIABILITIES | ||||
Current liabilities: | ||||
Accounts payable | $ 101,489 | $ 108,724 | ||
Accrued compensation | 100,641 | 92,494 | ||
Finance lease liabilities, current portion | 7,548 | 8,202 | ||
Other current liabilities (including | 827,041 | 798,990 | ||
Total current liabilities | 1,036,719 | 1,008,410 | ||
Finance lease liabilities, net of current portion | 75,807 | 77,653 | ||
Common stock warrant liability | 26,610 | 53,664 | ||
Long-term debt | 1,998,251 | 1,996,960 | ||
Other long-term liabilities (including | 525,914 | 524,339 | ||
Derivative liability (related party) | 497,100 | — | ||
Total liabilities | 4,160,401 | 3,661,026 | ||
REDEEMABLE CONVERTIBLE PREFERRED STOCK | ||||
Redeemable convertible preferred stock (related party), par value | 504,450 | — | ||
STOCKHOLDERS' EQUITY | ||||
Common stock, par value | 231 | 230 | ||
Additional paid-in capital | 15,134,686 | 15,066,080 | ||
Treasury stock, at cost, 857,825 shares at March 31, 2024 and December 31, 2023 | (20,716) | (20,716) | ||
Accumulated other comprehensive income (loss) | (2,400) | 4,850 | ||
Accumulated deficit | (10,879,611) | (10,198,752) | ||
Total stockholders' equity | 4,232,190 | 4,851,692 | ||
TOTAL LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND | $ 8,897,041 | $ 8,512,718 | ||
LUCID GROUP, INC. | |||
Three Months Ended | |||
2024 | 2023 | ||
Revenue (including | $ 172,740 | $ 149,432 | |
Costs and expenses | |||
Cost of revenue | 404,796 | 500,524 | |
Research and development | 284,627 | 229,803 | |
Selling, general and administrative | 213,232 | 168,770 | |
Restructuring charges | — | 22,496 | |
Total cost and expenses | 902,655 | 921,593 | |
Loss from operations | (729,915) | (772,161) | |
Other income (expense), net | |||
Change in fair value of common stock warrant liability | 27,054 | (40,802) | |
Change in fair value of equity securities of a related party | (19,933) | — | |
Interest income | 50,631 | 40,005 | |
Interest expense | (7,501) | (7,108) | |
Other income (expense), net | (1,007) | 667 | |
Total other income (expense), net | 49,244 | (7,238) | |
Loss before provision for income taxes | (680,671) | (779,399) | |
Provision for income taxes | 188 | 129 | |
Net loss | (680,859) | (779,528) | |
Accretion of redeemable convertible preferred stock (related party) | (3,901) | — | |
Net loss attributable to common stockholders, basic and diluted | $ (684,760) | $ (779,528) | |
Weighted average shares outstanding attributable to common stockholders, basic and diluted | 2,301,870,644 | 1,831,725,009 | |
Net loss per share attributable to common stockholders, basic and diluted | $ (0.30) | $ (0.43) | |
Other comprehensive income (loss) | |||
Net unrealized gains (losses) on investments, net of tax | $ (3,262) | $ 4,035 | |
Foreign currency translation adjustments | (3,988) | — | |
Total other comprehensive income (loss) | (7,250) | 4,035 | |
Comprehensive loss | (688,109) | (775,493) | |
Accretion of redeemable convertible preferred stock (related party) | (3,901) | — | |
Comprehensive loss attributable to common stockholders | $ (692,010) | $ (775,493) | |
LUCID GROUP, INC. | |||
Three Months Ended | |||
2024 | 2023 | ||
Cash flows from operating activities: | |||
Net loss | $ (680,859) | $ (779,528) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 68,838 | 49,838 | |
Amortization of insurance premium | 8,589 | 10,263 | |
Non-cash operating lease cost | 7,469 | 5,830 | |
Stock-based compensation | 63,696 | 53,819 | |
Inventory and firm purchase commitments write-downs | 132,298 | 227,048 | |
Change in fair value of common stock warrant liability | (27,054) | 40,802 | |
Net accretion of investment discounts/premiums | (21,304) | (21,395) | |
Change in fair value of equity securities of a related party | 19,933 | — | |
Other non-cash items | (1,255) | 2,345 | |
Changes in operating assets and liabilities: | |||
Accounts receivable (including | (75,196) | 17,009 | |
Inventory | (21,002) | (354,154) | |
Prepaid expenses | (11,042) | (9,082) | |
Other current assets | 3,914 | 22,193 | |
Other noncurrent assets | (4,369) | (27,337) | |
Accounts payable | (3,533) | (66,174) | |
Accrued compensation | 8,147 | 21,545 | |
Other current liabilities | (3,040) | 1,374 | |
Other long-term liabilities | 19,025 | 4,340 | |
Net cash used in operating activities | (516,745) | (801,264) | |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment (including | (198,197) | (241,770) | |
Purchases of investments | (514,548) | (842,538) | |
Proceeds from maturities of investments | 1,030,291 | 1,041,151 | |
Proceeds from sale of investments | — | 13,244 | |
Other investing activities | — | 1,197 | |
Net cash provided by (used in) investing activities | 317,546 | (28,716) | |
Cash flows from financing activities: | |||
Payment for finance lease liabilities | (1,081) | (1,427) | |
Proceeds from exercise of stock options | 1,525 | 2,181 | |
Proceeds from issuance of redeemable convertible preferred stock to a related party | 1,000,000 | — | |
Tax withholding payments for net settlement of employee awards | (3,242) | (6,499) | |
Net cash provided by (used in) financing activities | 997,202 | (5,745) | |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 798,003 | (835,725) | |
Beginning cash, cash equivalents, and restricted cash | 1,371,507 | 1,737,320 | |
Ending cash, cash equivalents, and restricted cash | $ 2,169,510 | $ 901,595 | |
LUCID GROUP, INC. | |||
Adjusted EBITDA | |||
Three Months Ended | |||
2024 | 2023 | ||
Net loss (GAAP) | $ (680,859) | $ (779,528) | |
Interest expense | 7,501 | 7,108 | |
Interest income | (50,631) | (40,005) | |
Provision for income taxes | 188 | 129 | |
Depreciation and amortization | 68,838 | 49,838 | |
Change in fair value of common stock warrant liability | (27,054) | 40,802 | |
Change in fair value of equity securities of a related party | 19,933 | — | |
Stock-based compensation | 63,696 | 55,262 | |
Restructuring charges | — | 22,496 | |
Adjusted EBITDA (non-GAAP) | $ (598,388) | $ (643,898) | |
Free Cash Flow | |||
Three Months Ended | |||
2024 | 2023 | ||
Net cash used in operating activities (GAAP) | $ (516,745) | $ (801,264) | |
Capital expenditures | (198,197) | (241,770) | |
Free cash flow (non-GAAP) | $ (714,942) | $ (1,043,034) | |
View original content to download multimedia:https://www.prnewswire.com/news-releases/lucid-announces-first-quarter-2024-financial-results-302137190.html
SOURCE Lucid Group
FAQ
How many vehicles did Lucid deliver in Q1 2024?
What was Lucid's Q1 2024 revenue?
How much liquidity did Lucid have at the end of the first quarter in 2024?
Who did Lucid raise $1.0 billion via a private placement to in Q1 2024?
What are Lucid's manufacturing plans for 2024?
