A Lucid showroom in New York City on August 19, 2023.
Adam Jeffery | CNBC
Lucid Group reported first-quarter revenue Monday that beat analysts’ estimates as price cuts helped the corporate deliver more luxury electric sedans in the primary three months of 2024.
Shares of the Newark, California-based company fell about 3% in after-hours trading. They have fallen about 28% this yr since Monday’s close as investors worry about slowing demand for electric vehicles.
The company said it’s on target to provide 9,000 cars this yr. It produced 8,428 vehicles last yr, and analysts expect the corporate to provide a mean of 12,677 units in 2024.
Lucid cut prices of its flagship Air sedans by as much as 10% in February to spice up sales as customers gravitate toward cheaper gasoline-electric hybrid cars amid still-high rates of interest.
The company last month reported first-quarter deliveries above market expectations due to lower prices, while Elon Musk-led leader Tesla reported its first decline in quarterly deliveries in nearly 4 years.
First-quarter revenue was $172.7 million, in comparison with analysts’ estimate of $156.99 million, in accordance with LSEG data.
Lucid posted a net lack of $684.76 million, narrower than its lack of $779.5 million a yr earlier.
With support from Saudi Arabia’s Public Investment Fund, the corporate may also begin producing a less expensive mid-size automobile in late 2026 to draw a bigger customer base.
The sovereign wealth fund has invested billions in Lucid’s success as a part of a technique to diversify the dominion’s economy beyond oil.
Its subsidiary added one other $1 billion to the electrical vehicle maker’s balance sheet, giving the corporate additional liquidity, underscoring a key advantage Lucid has amongst electric automobile startups within the race for survival.
The first quarter ended with money and money equivalents of $2.17 billion, in comparison with $1.37 billion within the fourth quarter last yr.
The company expects capital spending of $1.5 billion this yr, in comparison with $910.6 million in 2023.
