Lucid Reports Better-than-Expected Q3 Results; Gravity SUV on track for production in late 2024

Electric vehicle maker Lucid Motors (LCID) reported a third-quarter revenue increase and a narrower-than-expected loss as the company prepares for the major release of its Gravity electric SUV.

For the quarter, Lucid reported revenue of $200 million, beating estimates compiled by Bloomberg of $196.3 million and significantly higher than the $137.8 million reported a year ago. Lucid posted an adjusted loss per share of $0.28, less than the expected loss of $0.31, while adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was a loss of $613.1 million. Dollars, better than the expected loss of $634.4 million.

Lucid previously reported that 1,805 vehicles were produced and 2,781 were delivered in the third quarter. The company announced today that it is on track to meet its annual production forecast of 9,000 vehicles.

Lucid shares rose 3% in early trading Friday.

“Our momentum continues with our third consecutive quarter of record shipments,” Peter Rawlinson, CEO and chief technology officer of Lucid, said in a statement. “In addition, we are pleased to open the order book today for the highly anticipated Lucid Gravity SUV, a groundbreaking product that remains on track to begin production this year.”

The company also said it ended the quarter with $5.16 billion in cash – an important starting point as the company begins production of the Gravity. That doesn’t include the roughly $1.75 billion the company raised in a stock sale early last month.

“We continue to see improvements in gross margin as our cost reduction efforts gain momentum,” Lucid interim CFO Gagan Dhingra said in a statement. “With our latest capital increase, we are pleased to once again receive the continued support of both the Public Investment Fund and other institutional investors.”

Saudi Arabia’s Public Investment Fund (PIF) is Lucid’s largest investor through its subsidiary Ayar Third Investment Company. Ayar acquired additional shares as part of the capital increase to maintain its 58.8% stake.

Lucid hopes its upcoming Gravity SUV, scheduled to begin production later this year, will significantly boost sales.

“We believe the total addressable market for Gravity is six times larger than Lucid Air,” Rawlinson said in an interview with Yahoo Finance in August. Rawlinson said the company will eventually have the capacity to build 90,000 Gravity SUVs per year at its Arizona factory.

The big question will be whether Lucid can build the Gravity SUV efficiently and under cost. The Gravity is expected to start at around $80,000 in the US, right at the eligibility threshold for the federal electric vehicle tax credit.

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