Lucid adjusts 2023 production guidance on weaker than expected Q1 financials

Lucid has published its Q1 2023 financial report and has posted weaker than expected numbers after experiencing a decline in their production and deliveries over the previous quarter. Lucid has also adjusted their 2023 production guidance lower, and is no longer reporting how many reservations they have, in what are yet more troubling signs for the automaker.

In their financial report published after markets closed on Monday, Lucid confirmed its production (2,314 units) and deliveries (1,406 units) for the first quarter, figures which were a decline of 33% for production and more than 27% for deliveries compared to Q4 2022. That decline translated into a per-share loss of $0.43, compared to the $0.41 Wall Street analysts were expecting. Revenue also came in below expectations at approximately $149 million, a figure well below the $211 million estimate by analysts.

Looking towards the future, Lucid says they have just over $3.4 billion in cash or cash equivalents on hand, which it says is enough to fund the company through Q2 2024.

“Our Q1 revenue was approximately $149 million, which represented a year-over-year increase of 159%. We ended the quarter with just over $3.4 billion in cash, cash equivalents, and investments, with total liquidity of approximately $4.1 billion, which we believe is sufficient to fund the Company at least into Q2 of 2024. Our mission and optimism are unchanged. We are committed to an environmentally sustainable future – designing, building, and delivering the best EVs on the market,” said CFO Sherry House.

The bad news didn’t stop with the company’s financials. Lucid also revised its 2023 production guidance, following the same worrying trend from last year. In the company’s Q4 2022 report they said they were targeting between 10,000 and 14,000 deliveries in 2023, but today that number was changed to low end of that range, “over 10,000.” Lucid’s manufacturing facility in Casa Grande, Arizona has the capacity to produce 34,000 cars per year.

“We are on track to produce over 10,000 vehicles in 2023, with company-wide initiatives ongoing that will enable Lucid to pivot to higher volumes as market conditions allow,” said Peter Rawlinson, Lucid’s CEO and CTO.

As we have previously reported, Lucid has seen its number of reservations dropping by more than the number of cars they were delivering, indicating customers were cancelling their orders before completing them. As of their last report from Q4 they had over 28,000, but with today’s Q1 report Lucid is apparently no longer reporting this figure as it is not included in their shareholder deck.

Shares of Lucid (LCID) are trading down more than 7% in after-hours trading. We will find out more about Lucid’s Q1 2023 report as the company will host a conference call at 2:30pm PT/5:30pm ET.

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