Lucid Group Q1 2024 earnings highlight growth and expansion By Investing.com

Lucid Group (ticker: LCID) reported a significant year-over-year increase in vehicle deliveries during their first quarter 2024 earnings call, along with plans for expansion and new vehicle production.

The electric vehicle maker raised $1 billion in capital through a private placement of convertible preferred stock to an affiliate of the Public Investment Fund (PIF), produced 1,728 vehicles, and delivered 1,967 units in Q1, marking their best quarter for deliveries with a 39.9% increase from the previous year. They expect to produce approximately 9,000 vehicles in 2024 and are working on expanding their vehicle lineup, including the upcoming Gravity SUV and a midsized vehicle slated for late 2026.

Despite these developments, the company recorded an adjusted EBITDA loss of $598.4 million for the quarter.

Key Takeaways

• Lucid Group delivered 1,967 vehicles in Q1, their best quarter to date, up 39.9% year-over-year.
• Raised $1 billion from a private placement of convertible preferred stock to an affiliate of the PIF.
• Plans to produce around 9,000 vehicles in 2024.
• Lucid Air named best luxury electric car for the third consecutive year.
• Expansion of vehicle lineup with the Gravity SUV and a midsized vehicle.
• Adjusted EBITDA loss of $598.4 million reported in Q1.

Company Outlook

• Lucid Air continues to be recognized for its quality, winning best luxury electric car for the third year.
• The Gravity SUV program is expanding, with production expected to start later this year.
• A midsized vehicle is scheduled for production in late 2026.

Bearish Highlights

• Adjusted EBITDA loss of $598.4 million in Q1.
• Anticipated flat gross margin in Q2 due to inventory buildup for the Gravity SUV program.
• Expected increase in R&D expenses for ramping up new vehicle programs.
• SG&A expenses decreased in Q1 but are projected to rise with continued investments.

Bullish Highlights

• Raised significant capital, ensuring a strong cash and liquidity position of approximately $5.03 billion.
• Lucid is the sole supplier of the front drive unit to a leading electric racing series.
• Reduction in bill of materials and logistics costs, with further cost optimization initiatives underway.

Misses

• Despite the growth in sales momentum, the company recorded a sizable adjusted EBITDA loss.
• No specific guidance provided on future deliveries to Saudi Arabia or on cash burn rates.

Q&A Highlights

• Lucid Motors (NASDAQ:) is not facing…