Brand new Lucid electric cars sit parked in front of a Lucid Studio showroom in San Francisco on May 24, 2024.
Justin Sullivan | Getty Images
Lucid Group slightly beat Wall Street’s third-quarter expectations as the electric carmaker cuts costs ahead of plans to begin consumer production of a new SUV by the end of this year.
Here is how the company performed in the quarter, compared with average estimates compiled by LSEG:
Loss per share: 28 cents adjusted vs. a loss of 30 cents expected
Revenue: $200 million vs. $198 million expected
Shares of Lucid increased by more than 8% during after-hours trading Thursday. The stock closed regular trading at $2.22 per share, up 4.2%.
The company’s net loss for the third quarter widened to $992.5 million. That compares to a loss of $630.9 million a year earlier.
Lucid CEO Peter Rawlinson described the quarter as a “landmark” for the company, citing record deliveries of 2,781 units as well as cost-cutting measures. He also noted that the company hit financial and production targets.
The automaker’s costs of $324.4 million in research and development and $233.6 million in selling, general and administrative during the third quarter were up 40.1% and 23.1%, respectively, compared with a year earlier. Others, such as cost of revenue and restructuring, notably declined from a year earlier.
The company reaffirmed plans to produce roughly 9,000 vehicles this year, which would mark a 6.8% increase compared to 8,428 units in 2023.
Lucid said it had $5.16 billion in total liquidity to end the quarter. That excludes a $1.75 billion stock offering and capital raise last month that surprised many investors.
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Lucid, Rivian and Tesla stocks in 2024.
Lucid’s stock has been under pressure this year amid widening losses, slower-than-expected sales and significant cash burn. Shares of the company are off by about 45% this year, including an 18% decline — its worst daily loss since December 2021 — following the recent capital raise.
Rawlinson previously told CNBC the public offering of nearly 262.5 million shares of its common stock was a timely, strategic business decision to ensure the electric vehicle company has enough capital for its ongoing operations and growth plans.
The company reiterated Thursday that its current funds now secure its capital into 2026, ahead of it launching a new midsize platform later that year.
Lucid is currently in a highly capital-intensive investment period as it expands its sole U.S. factory in Arizona; builds a second plant in Saudi Arabia; prepares to launch its second product, an SUV called Gravity; develops its next-generation powertrain; and builds out its retail and service network.
The company during its second-quarter earnings call said capital expenditures this year were expected to be $1.3 billion, down from previous guidance of $1.5 billion amid cost-cutting actions.
Gagan Dhingra, Lucid interim CFO and principal accounting officer, said cost cuts are occurring across the automaker: “We are not leaving any corner. It’s across the board.”
Lucid reported third-quarter results Thursday afternoon after opening up orders for its upcoming Gravity SUV that’s expected to begin consumer production by the end of this year.