Lucid earnings: EV-maker reports revenue, profit miss
Lucid competes with Tesla in term of luxury EV. Its profitability fell in Q1 2023 is due the the price cutting marketing strategy initiated by Tesla early this year.
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Lucid Motors (LCID) shares fell in extended trading as the pure-play electric vehicle maker reported a Q1 revenue and earnings miss, as concerns about profitability and production mount for the California-based company.
For the quarter, Lucid reported top-line revenue of $149.4 million, missing estimates of $197.8 million and below the $257 million Lucid reported last quarter, though it was significantly higher than the $57.7 million Lucid reported a year ago. In terms of profitability, Lucid reported an adjusted EPS loss of $0.43, wider than the $0.40 loss per share expected by Wall Street. Lucid shares were down around 4% in after-hours trading.
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As it turned out, Lucid didn't come anywhere close to these expectations. Revenue for the period came in just under $150 million. While this is tremendous growth in percentage terms over the prior-year period, the number was down over $108 million on a sequential basis. Worse yet, the company reported a cost of goods sold of more than half a billion dollars, with the operating loss surging by about $175 million above Q1 2022 levels. Lucid's net loss was almost $780 million, more than five times the revenue number, a situation that is not sustainable. On a per-share basis, Lucid lost 43 cents, which was 2 cents worse than the street was expecting.
As the chart below shows, the cash balance has come down quite a bit since then end of 2021, and that includes a major capital raise that came late last year.
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I reflected trading experiences by writing journals. My comments are for educational purposes not financial advice.
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TeslaSmurf : Lucid NEVER had a profitability, I’m afraid: they sell for 106K a car that costs them 550K per unit to produce and they can’t scale it up. If they don’t get the new Gravity suv to the market in large numbers, they are doomed.
ZnWCOP TeslaSmurf: You are right. The 2nd article said it's operation loss is increasing each year and not sustainable.