Lucid Motors Q3 results are in and it’s almost good news

08 November 2024

Lucid Motors released its third-quarter earnings report, revealing a mixed bag of results. The company exceeded revenue expectations and achieved record deliveries, but it continues to bleed money.

Lucid's Q3 revenue reached $200 million, surpassing the anticipated $198 million. It is a 45% increase compared to the same period last year, so - solid growth. The company also reported a record 2,781 vehicle deliveries for the quarter. Unfortunately, the net loss has grown to $992.5 million, significantly higher than the $630.9 million loss in the same quarter last year. Despite that, CEO Peter Rawlinson stays optimistic about the company's progress and the recent launch of their new SUV model, Gravity.

Lucid's stock has faced a turbulent year, with shares down 46% year-to-date. The Q3 results bumped up the share price a little, and it is trading at around $2.33 at the time of writing, with the company's valuation standing at $6.6 billion. To improve its financial situation, Lucid secured $1.2 billion in funding from Saudi Arabia's sovereign wealth fund last month.

Despite the financial trouble, Lucid is determined to stay the course. The company confirmed it is still going to deliver on its annual production target of 9,000 vehicles. To achieve this goal, Lucid will need to produce 3,357 cars in the remaining quarter. This is a big challenge considering the recent sequential drop in production from 2,781 vehicles delivered to 1,805 vehicles produced.

Interim CFO Gagan Dhingra assured investors that the company's focus is on cost reduction and improving gross margins, which currently stand at negative 106.2%. Still, that's an improvement from the previous quarter's -134.5%.

The launch of the Gravity SUV should be a pivotal moment for Lucid. Entering the highly profitable SUV market, Lucid will compete with established players like Rivian and Tesla. The success of Gravity could significantly impact the company's future prospects.

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