Lucid Group powers higher after earnings topper and update on a new cheaper vehicle
Lucid Group (NASDAQ:LCID) traded higher on Friday after the electric vehicle maker reported 45% revenue growth in Q3 to $200.4 million and a narrower quarterly loss than a year ago.
The company produced 1,805 vehicles in Q3 and is on track for annual production of approximately 9,000 vehicles. Lucid Group (LCID) delivered 2,781 vehicles during the quarter.
Margin improvement was seen during the quarter after LCID transitioned its battery enclosure manufacturing and various subassemblies on site at the Arizona factory. LCID is also transitioning powertrain manufacturing to be fully on-site. The expectation is that on top of a number of cost benefits, including logistics, the transition should also help the efficiency of the factory when fully integrated.
Lucid CEO Peter Rawlinson described the quarter as a landmark for the company. “Our recent capital raise of approximately $1.75 billion serves to further secure the future of the company by extending its financial runway well into 2026,” he noted. Looking ahead, LCID maintained its 2024 production outlook of 9,000 vehicles, but cut its 2024 capital expenditure target to $1.0 billion from $1.3 billion.
During the earnings call, Rawlinson said a cheaper vehicle ($48,K to $50K) is scheduled to start product in late 2026.
Bank of America reiterated a Neutral rating on Lucid Group (LCID) after the earnings report. Analyst John Murphy and his team see risks from softer demand and expect the company will need to raise more capital in addition to the latest $1.75 billion raise.
Shares of Lucid Group (LCID) were up 4.95% in premarket trading on Friday and gaining 4.23% on Thursday.