Lucid Group (NASDAQ:LCID) reported worse-than-expected Q2 results, sending its shares nearly 1% lower in pre-market Tuesday.
EPS came in at ($0.40), compared to the consensus estimate of ($0.35). Revenue was $150.9 million, driven by customer deliveries of 1,404 vehicles in the quarter. Consensus estimated revenue of $191.41M.
Lucid ended the quarter with approximately $6.25 billion in total liquidity, which is anticipated to fund the company into 2025.
"We're on track toward achieving our 2023 production target of more than 10,000 vehicles, but we recognize we still have work to do to grow our customer base. During our second quarter, we achieved several major milestones, including signing agreements to enter into a long-term strategic partnership with Aston Martin,” said Peter Rawlinson, Lucid's CEO and CTO.
The company anticipates the launch of several new products in the latter half of this year. This includes the initiation of production for the Lucid Air Sapphire and the Lucid Air Pure Rear Wheel Drive, as well as the debut of its new SUV, the Lucid Gravity, which is scheduled for November.
Evercore ISI analysts commented:
"While the print appears similar to the last 3 quarters, this was the first quarter in which mgmt tone was optimistic on increased orders and 2H volume ramp (however mgns remain significant headwind as -268% GMs will only be partially countered in near-term by IRA and cost efficiencies)."
Bank of America analysts remain cautious on the LCID stock.
"We see risks from softer demand and expect the company will need to raise more capital, but these points are balanced with our view that LCID is one of the most attractive among the universe of start-up EV automakers because it has class-leading powertrain tech along with other key attributes."
Additional reporting by Senad Karaahmetovic