Lucid Q1 earnings: Provides just 360 EVs in quarter cost hikes loom

May 8, 2022 Off By [email protected]_84

In 1st-quarter fiscal success, Lucid posted a $598 million functioning loss on profits of $57.6 million. Because of a $523 million improvement in the benefit of its typical stock, Lucid’s net decline was only $81.3 million in comparison with a decline of $2.9 billion throughout the exact same quarter very last 12 months.

CFO Sherry House explained the automaker’s $5.4 billion funds on hand would allow for it to execute its enlargement programs into 2023 as it rolls out a lot more reasonably priced versions of the Air sedans and the planned 2024 start of the Gravity SUV.

Price tag hikes for the Air arrive in anticipation of continuing elevated prices for sections and shipping, as nicely as some better charges for the following phase of manufacturing unit building, Dwelling said.

Lucid’s Phoenix-place plant at this time has installed potential of 34,000 cars for every calendar year and is growing to 90,000 by late 2023, the business mentioned. By mid-ten years, House explained, capability will rise to 350,000 in Arizona and 150,000 at a new plant prepared for Saudi Arabia.

Air price tag hikes are productive June 1, leaving a modest window for new reservations to lock in current prices. Immediately after this month, new reservations in the U.S. will begin at $154,000 for the Air Grand Touring, not which include shipping and delivery. That is an increase from $139,000.

Lucid reported it is on observe to create more low-cost trims later in the yr. The Air Touring will start off at $107,400, with the price expanding from $95,000 currently. The base Air Pure will begin at $87,400, up from its current rate of $77,400, the enterprise said.

“Very similar to numerous organizations in our market, we carry on to deal with worldwide offer chain and logistics troubles, such as COVID-relevant factory shutdowns in China,” House explained.

Lessons from Rivian

By respecting current rates for its autos, Lucid is keeping away from the uproar brought on at a different well known EV startup, Rivian Automotive, which tried to increase prices on its reservation holders in March to substantial blowback.

Rivian CEO RJ Scaringe apologized to prospective buyers of the R1T pickup and R1S SUV for betraying their belief and backtracked on the selling price improves for autos booked ahead of March 1.

Rivian’s cost hikes of about 20 p.c ended up increased than Lucid’s, but Rivian also developed much more inexpensive styles at the older selling price factors. Rivian’s base R1T begins at $67,500 prior to shipping prices.

Both Lucid and Rivian have obtained popular market praise for their large-conclude EVs, together with purchase backlogs that will stretch into subsequent yr and beyond. Rivian reported it has continued to log new orders even at the increased charges.

Reuters contributed to this report.