Lucid’s Road to 10,000 EVs: 2023 Q2 Financial Report Analysis
Luxury electric vehicle company, Lucid, reported Q2 financial results that fell short of expectations. While it confirmed the unveiling of its Gravity SUV in November and reasserted its commitment to hitting annual production targets, the automaker's results disappointed in key areas:
- Q2 revenue was $150.9 million, below the expected $176.63 million.
- Adjusted EPS loss for Q2 was $0.40, missing the anticipated loss of $0.34.
- The adjusted EBITDA loss stood at $710.3 million, a stark contrast to the predicted loss of $596.14 million and a significant jump from the previous year's $414.1 million loss.
From a production perspective:
- Lucid delivered 1,404 vehicles in Q2, falling short of the estimated 1,873.
- It produced 2,173 vehicles in Q2, slightly less than Q1's production of 2,314 vehicles.
- Lucid remains confident in its goal to manufacture 10,000 EVs in 2023.
Lucid CEO Peter Rawlinson commented, "We're on track to achieve our 2023 production target of over 10,000 vehicles, but we need to expand our customer base."
In an attempt to drive demand, Lucid reduced the MSRP of its base model Air Pure sedan by $5,000 and provided significant cuts for higher trim levels. This special pricing is available for immediate delivery and is complemented by promotional leasing and financing offers.
Although Lucid's vehicles are above the price cap for federal EV tax credits, it leverages a commercial lease exemption, allowing lease customers to benefit from a $7,500 price reduction.
Despite the positive steps, Lucid's Q2 deliveries may indicate a potential drop in demand.
By the way, US electric vehicle (EV) sales skyrocketed in Q2 2023, reaching 295,355 units, which is a 48.4% increase from the same period last year. This surge also mirrors the growing consumer interest and environmental awareness.