Lucid has revised its 2023 manufacturing outlook amid softening demand for luxurious electrical autos, the corporate stated Tuesday in its third-quarter earnings report.
The EV maker stated it is going to produce 8,000 to eight,500 autos by the top of the 12 months, down from earlier steering of greater than 10,000, to “prudently align with deliveries.”
Within the third quarter, Lucid delivered 1,457 of its luxurious electrical Air sedans, lacking Wall Avenue expectations by about 500 autos. 12 months-over-year and quarter-over-quarter, Lucid’s supply numbers had been roughly flat.
The revised manufacturing steering and weak supply numbers come as shoppers are unwilling to spend huge on EVs, preferring as a substitute to go for extra budget-friendly hybrids. To maintain up demand, corporations world wide have been searching for methods to supply EVs at a cheaper price level. Tesla has been constantly slashing its costs throughout the board to spice up gross sales. And automakers like Ford and Rivian are working to return to market with cheaper fashions.
In August, Lucid began reducing costs throughout the total Air lineup. Final week, the EV maker doubled down, slashing the value of its Air Touring mannequin to $87,500, down from $95,000, and the Grand Touring by $10,000 to $115,600. The all-wheel drive Air Pure can be now at $74,900, down from $82,400.
Whereas cheaper, these automobiles are nonetheless costly, and Lucid is about to disclose one other luxurious EV mannequin that can seemingly be simply as pricey.
Lucid’s Gravity SUV is about to be unveiled subsequent week. The corporate stated manufacturing continues to be scheduled to start in late 2024. Pricing has not but been revealed for that automotive, however it’s anticipated to return in at round $100,000.
Lucid missed Wall Avenue estimates
Lucid reported $137.8 million within the third quarter, lacking Wall Avenue estimates of $192.72 million by a protracted shot, in line with Yahoo Finance data. That income is down about 30% from the identical interval in 2022, when Lucid reported earnings of $195.5 million.
A few of that may be attributed to restructuring expenses. In March, Lucid laid off 18% of employees, or about 1,300 staff, to scale back prices on the firm. Lucid stated its restructuring effort would additionally result in different value cuts, however the automaker’s spend on promoting, normal and administrative bills has grown year-over-year.
Lucid closed the quarter with a web lack of $630.8 million. The automaker nonetheless has $1.16 billion in money and money equivalents and a complete $5.45 billion in liquidity, which Sherry Home, Lucid’s CFO, says will get the Gravity to manufacturing and assist the corporate keep afloat into 2025.
“We’ve additionally made progress with the fee management program we applied within the first half of the 12 months and have recognized additional alternatives for 2024,” stated Home in an announcement.
Whereas Lucid’s liquidity place could also be sturdy for the second, the automaker nonetheless closed out the quarter with unfavorable free money movement of –$706 million, a stark signal that Lucid isn’t bringing in sufficient money to cowl its excessive prices.
For the 12 months, Lucid expects to spend between $1 billion and $1.1 billion on capital expenditures as the corporate strategically invests in manufacturing capability, retail studios and repair facilities, and vendor tooling for the Gravity, in line with Home.
Lucid’s inventory fell virtually 7% in after-hours buying and selling Tuesday.