Lucid Announces Fourth Quarter and Full Year 2023 Financial Results
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Insights
The reported increase in vehicle deliveries and production by Lucid Group indicates a positive trajectory in operational performance, which is a critical metric for investors assessing the company's growth potential. A 37% year-over-year growth in deliveries showcases the company's expanding market presence and consumer acceptance, which can be attributed to the strategic positioning of the Lucid Air as a luxury electric vehicle (EV). The production figures meeting the upper end of the guidance demonstrate effective management and operational efficiency.
Furthermore, the strong liquidity position with $4.78 billion provides Lucid with a robust financial cushion to support its expansion plans and R&D investments. This indicates a lower immediate risk of cash flow issues or the need for external financing, which could dilute shareholder value. However, the 2024 production guidance of approximately 9,000 vehicles may raise concerns about the pace of growth, especially when compared to larger EV manufacturers. Investors might scrutinize whether the production targets align with the company's ambition to lead the luxury EV market and if they are sufficient to capture significant market share.
Lucid's Q4 revenue of $157.2 million and annual revenue of $595.3 million reflect the company's ability to monetize its production effectively. Revenue growth is a fundamental indicator of the company's market performance and its ability to convert its innovations into sales. However, it is imperative to analyze this in the context of the company's valuation and market expectations. The revenue figures should be compared against the company's cost structure, R&D expenses and capital expenditure to determine profitability or the path to it.
The company's financial strategy, as indicated by its liquidity position, suggests a strong emphasis on ensuring financial flexibility. This is particularly important in the capital-intensive automotive industry, where unforeseen challenges such as supply chain disruptions or shifts in consumer demand can have significant financial implications. Stakeholders will be interested in how Lucid plans to utilize its liquidity to achieve sustainable growth and whether it can maintain a balance between aggressive expansion and financial prudence.
The expansion of Lucid's vehicle lineup and its focus on the luxury EV segment positions the company in a niche but rapidly growing market. The luxury EV segment is characterized by high margins and a consumer base that is less price-sensitive, which could benefit Lucid in terms of profitability per unit sold. However, the competition in this space is intensifying, with established automakers and new entrants vying for market share.
The announcement of Lucid's next transformational phase is significant as it indicates a strategic shift towards diversifying its offerings and addressing a broader market. The unveiling of the Gravity model could be a response to the increasing consumer demand for electric SUVs and crossovers. The ability to innovate and expand the product portfolio is crucial for maintaining competitive advantage, but it also requires substantial investment in technology and manufacturing capabilities. The long-term success of this strategy will depend on Lucid's execution and its ability to deliver high-quality products that resonate with consumers' expectations in the luxury segment.
- Delivered 1,734 vehicles in Q4 and 6,001 vehicles in 2023, up
37% compared to full year 2022 - Produced 2,391 vehicles in Q4 and 8,428 vehicles in 2023, meeting the higher-end of 2023 annual production guidance of 8,000 to 8,500 vehicles
- Q4 revenue of
$157.2 million $595.3 million - Ended the quarter with approximately
$4.78 billion - Lucid is embarking on the Company's next transformational phase, with the expansion of its vehicle lineup and total addressable market
- 2024 production guidance of approximately 9,000 vehicles
The Company produced 2,391 vehicles during Q4 and delivered 1,734 vehicles during the same period. On a full-year basis, the Company produced 8,428 vehicles, meeting the higher end of the 2023 annual production guidance of 8,000 to 8,500 vehicles, and delivered 6,001 vehicles in 2023. Lucid today also announced its 2024 annual production guidance of approximately 9,000 vehicles, and will continue to prudently manage and adjust production to meet sales and delivery needs.
Lucid reported fourth quarter revenue of
"Lucid is investing for the long term in technology, manufacturing and partnerships to further solidify our place in the market as the premier luxury EV brand in the world," said Peter Rawlinson, Lucid's CEO and CTO. "In 2023, we made our first strategic technology arrangement, gained market share, completed the Air lineup, and unveiled Gravity. As we start 2024, I'm very excited about the year ahead and beyond. We are entering the next transformational phase of the Lucid vehicle lineup and are laser-focused on growth."
"I'd like to echo Peter's excitement as we start the year," said Gagan Dhingra, Lucid's Interim Chief Financial Officer and Principal Accounting Officer. "We outpaced our total addressable market and made headway with our cost optimization programs – a key strategic priority for the Company. I'm excited about the future as Gravity start of production is scheduled for late 2024 and the start of production for our high-volume Midsize platform is scheduled for late 2026."
Lucid will host a conference call for analysts and investors at 2:30 P.M. PT / 5:30 P.M. ET on February 21, 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.
1 Based on percentage of major industry awards and accolades earned by new luxury vehicles launched in the last three years and on sale in
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
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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 Lucid Gravity and Midsize platform, 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 Lucid Gravity, including performance, driving range, features, specifications, and Gravity's 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 the Phase 2 expansion of Lucid's AMP-1 factory, including potential benefits, ability to vertically integrate production processes, future sales channels and strategies, future market launches and international expansion, including plans and expectations for the AMP-2 manufacturing facility in
Non-GAAP Financial Measures and Key Business Metrics
Consolidated financial information has been presented in accordance with US GAAP ("GAAP") as well as on a non-GAAP basis to supplement our 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 (benefit from) income taxes, (4) depreciation and amortization, (5) change in fair value of common stock warrant liability, (6) change in fair value of equity securities, (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. CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands, except share and per share data) | ||||
December 31, | December 31, | |||
ASSETS | ||||
Current assets: | ||||
Cash and cash equivalents | $ 1,369,947 | $ 1,735,765 | ||
Short-term investments | 2,489,798 | 2,177,231 | ||
Accounts receivable, net | 51,822 | 19,542 | ||
Inventory | 696,236 | 834,401 | ||
Prepaid expenses | 69,682 | 63,548 | ||
Other current assets | 79,670 | 81,541 | ||
Total current assets | 4,757,155 | 4,912,028 | ||
Property, plant and equipment, net | 2,810,867 | 2,166,776 | ||
Right-of-use assets | 221,508 | 215,160 | ||
Long-term investments | 461,029 | 529,974 | ||
Other noncurrent assets | 262,159 | 55,300 | ||
TOTAL ASSETS | $ 8,512,718 | $ 7,879,238 | ||
LIABILITIES | ||||
Current liabilities: | ||||
Accounts payable | $ 108,724 | $ 229,084 | ||
Accrued compensation | 92,494 | 63,322 | ||
Finance lease liabilities, current portion | 8,202 | 10,586 | ||
Other current liabilities | 798,990 | 634,567 | ||
Total current liabilities | 1,008,410 | 937,559 | ||
Finance lease liabilities, net of current portion | 77,653 | 81,336 | ||
Common stock warrant liability | 53,664 | 140,590 | ||
Long-term debt | 1,996,960 | 1,991,840 | ||
Other long-term liabilities | 524,339 | 378,212 | ||
Total liabilities | 3,661,026 | 3,529,537 | ||
STOCKHOLDERS' EQUITY | ||||
Common stock, par value | 230 | 183 | ||
Additional paid-in capital | 15,066,080 | 11,752,138 | ||
Treasury stock, at cost, 857,825 shares at December 31, 2023 and 2022 | (20,716) | (20,716) | ||
Accumulated other comprehensive income (loss) | 4,850 | (11,572) | ||
Accumulated deficit | (10,198,752) | (7,370,332) | ||
Total stockholders' equity | 4,851,692 | 4,349,701 | ||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 8,512,718 | $ 7,879,238 | ||
LUCID GROUP, INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) (in thousands, except share and per share data) | |||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
Revenue | $ 157,151 | $ 257,713 | $ 595,271 | $ 608,181 | |||
Costs and expenses | |||||||
Cost of revenue | 410,015 | 615,291 | 1,936,066 | 1,646,086 | |||
Research and development | 242,977 | 221,294 | 937,012 | 821,512 | |||
Selling, general and administrative | 241,026 | 170,867 | 797,235 | 734,574 | |||
Restructuring charges | — | — | 24,546 | — | |||
Total cost and expenses | 894,018 | 1,007,452 | 3,694,859 | 3,202,172 | |||
Loss from operations | (736,867) | (749,739) | (3,099,588) | (2,593,991) | |||
Other income (expense), net | |||||||
Change in fair value of common stock warrant liability | 25,279 | 255,899 | 86,926 | 1,254,218 | |||
Change in fair value of equity securities | 5,999 | — | 5,999 | — | |||
Interest income | 58,680 | 29,472 | 204,274 | 56,756 | |||
Interest expense | (7,777) | (8,075) | (24,915) | (30,596) | |||
Other income (expense), net | 934 | (366) | (90) | 9,532 | |||
Total other income, net | 83,115 | 276,930 | 272,194 | 1,289,910 | |||
Loss before provision for (benefit from) income taxes | (653,752) | (472,809) | (2,827,394) | (1,304,081) | |||
Provision for (benefit from) income taxes | 14 | (161) | 1,026 | 379 | |||
Net loss | (653,766) | (472,648) | (2,828,420) | (1,304,460) | |||
Net loss attributable to common stockholders, basic | (653,766) | (472,648) | (2,828,420) | (1,304,460) | |||
Change in fair value of dilutive warrants | — | — | — | (1,254,218) | |||
Net loss attributable to common stockholders, diluted | $ (653,766) | $ (472,648) | $ (2,828,420) | $ (2,558,678) | |||
Weighted average shares outstanding attributable to common stockholders | |||||||
Basic | 2,292,032,497 | 1,712,951,982 | 2,081,772,622 | 1,678,346,079 | |||
Diluted | 2,292,032,497 | 1,712,951,982 | 2,081,772,622 | 1,693,258,608 | |||
Net loss per share attributable to common stockholders | |||||||
Basic | $ (0.29) | $ (0.28) | $ (1.36) | $ (0.78) | |||
Diluted | $ (0.29) | $ (0.28) | $ (1.36) | $ (1.51) | |||
Other comprehensive income (loss) | |||||||
Net unrealized gains (losses) on investments, net of tax | $ 10,079 | $ 1,694 | $ 12,669 | $ (11,572) | |||
Foreign currency translation adjustments | 5,134 | — | 3,753 | — | |||
Total other comprehensive income (loss) | 15,213 | 1,694 | 16,422 | (11,572) | |||
Comprehensive loss attributable to common stockholders | $ (638,553) | $ (470,954) | $ (2,811,998) | $ (1,316,032) | |||
LUCID GROUP, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in thousands) | |||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
Cash flows from operating activities: | |||||||
Net loss | $ (653,766) | $ (472,648) | $ (2,828,420) | $ (1,304,460) | |||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Depreciation and amortization | 67,498 | 55,240 | 233,531 | 186,583 | |||
Amortization of insurance premium | 9,265 | 10,432 | 39,507 | 35,620 | |||
Non-cash operating lease cost | 7,330 | 5,457 | 26,201 | 19,711 | |||
Stock-based compensation | 63,851 | 71,255 | 257,283 | 423,500 | |||
Inventory and firm purchase commitments write-downs | 171,574 | 204,926 | 906,069 | 569,479 | |||
Change in fair value of common stock warrant liability | (25,279) | (255,899) | (86,926) | (1,254,218) | |||
Net accretion of investment discounts/premiums | (30,504) | (11,435) | (105,432) | (20,695) | |||
Change in fair value of equity securities | (5,999) | — | (5,999) | — | |||
Other non-cash items | 6,267 | 6,113 | 34,205 | 10,353 | |||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (28,731) | (16,987) | (32,509) | (16,498) | |||
Inventory | (82,077) | (350,295) | (658,010) | (1,256,349) | |||
Prepaid expenses | (2,579) | (16,721) | (45,641) | (28,822) | |||
Other current assets | (8,922) | (10,329) | 4,758 | (43,591) | |||
Other noncurrent assets | (8,000) | (4,148) | (121,790) | (43,230) | |||
Accounts payable | (24,709) | 128,253 | (139,519) | 180,469 | |||
Accrued compensation | 30,953 | 14,314 | 29,172 | 30,958 | |||
Other current liabilities | (10,175) | (16,880) | (71,680) | 253,904 | |||
Other long-term liabilities | 49,454 | 10,837 | 75,447 | 31,028 | |||
Net cash used in operating activities | (474,549) | (648,515) | (2,489,753) | (2,226,258) | |||
Cash flows from investing activities: | |||||||
Purchases of property, plant and equipment | (272,642) | (289,888) | (910,644) | (1,074,852) | |||
Proceeds from government grant | 97,500 | — | 97,500 | 97,267 | |||
Purchases of investments | (413,028) | (1,127,452) | (3,998,282) | (3,854,129) | |||
Proceeds from maturities of investments | 1,240,320 | 1,024,361 | 3,720,890 | 1,149,714 | |||
Proceeds from sale of investments | — | — | 148,388 | — | |||
Other investing activities | — | 323 | (4,827) | 323 | |||
Net cash provided by (used in) investing activities | 652,150 | (392,656) | (946,975) | (3,681,677) | |||
Cash flows from financing activities: | |||||||
Proceeds from issuance of common stock under Underwriting Agreement, net of issuance costs | — | — | 1,184,224 | — | |||
Proceeds from issuance of common stock under 2023 Subscription Agreement, net of issuance | — | — | 1,812,641 | — | |||
Proceeds from issuance of common stock under At-the-Market Offering, net of issuance costs | — | 594,317 | — | 594,317 | |||
Proceeds from issuance of common stock under 2022 Subscription Agreement | — | 915,000 | — | 915,000 | |||
Payment for short-term insurance financing note | — | — | — | (15,330) | |||
Payment for finance lease liabilities | (891) | (1,372) | (5,425) | (4,977) | |||
Proceeds from borrowings | 19,991 | 9,590 | 62,911 | 29,818 | |||
Repayments for borrowings | — | (13,570) | — | (20,223) | |||
Proceeds from failed sale-leaseback transaction | — | — | — | 31,700 | |||
Proceeds from exercise of stock options | 3,022 | 3,050 | 10,343 | 17,788 | |||
Proceeds from employee stock purchase plan | 8,747 | 11,680 | 23,836 | 24,562 | |||
Tax withholding payments for net settlement of employee awards | (2,910) | (5,894) | (17,615) | (218,789) | |||
Payment for credit facility issuance costs | — | — | — | (6,631) | |||
Net cash provided by financing activities | 27,959 | 1,512,801 | 3,070,915 | 1,347,235 | |||
Net increase (decrease) in cash, cash equivalents, and restricted cash | 205,560 | 471,630 | (365,813) | (4,560,700) | |||
Beginning cash, cash equivalents, and restricted cash | 1,165,947 | 1,265,690 | 1,737,320 | 6,298,020 | |||
Ending cash, cash equivalents, and restricted cash | $ 1,371,507 | $ 1,737,320 | $ 1,371,507 | $ 1,737,320 | |||
LUCID GROUP, INC. Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited) (in thousands) | ||||||||
Adjusted EBITDA | ||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||
2023 | 2022 | 2023 | 2022 | |||||
Net loss (GAAP) | $ (653,766) | $ (472,648) | $ (2,828,420) | $ (1,304,460) | ||||
Interest expense | 7,777 | 8,075 | 24,915 | 30,596 | ||||
Interest income | (58,680) | (29,472) | (204,274) | (56,756) | ||||
Provision for (benefit from) income taxes | 14 | (161) | 1,026 | 379 | ||||
Depreciation and amortization | 67,498 | 55,240 | 233,531 | 186,583 | ||||
Change in fair value of common stock warrant liability | (25,279) | (255,899) | (86,926) | (1,254,218) | ||||
Change in fair value of equity securities | (5,999) | — | (5,999) | — | ||||
Stock-based compensation | 63,851 | 71,255 | 258,726 | 423,500 | ||||
Restructuring charges | — | — | 24,546 | — | ||||
Adjusted EBITDA (non-GAAP) | $ (604,584) | $ (623,610) | $ (2,582,875) | $ (1,974,376) | ||||
Free Cash Flow | ||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||
2023 | 2022 | 2023 | 2022 | |||||
Net cash used in operating activities (GAAP) | $ (474,549) | $ (648,515) | $ (2,489,753) | $ (2,226,258) | ||||
Capital expenditures | (272,642) | (289,888) | (910,644) | (1,074,852) | ||||
Free cash flow (non-GAAP) | $ (747,191) | $ (938,403) | $ (3,400,397) | $ (3,301,110) | ||||
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SOURCE Lucid Group
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