Lucid lowers production targets as demand for luxury EV increases – Referus


Salary season coincides with today’s fourth quarter results for Lucid Motors. The company, like other electric vehicle companies (EV), is growing in revenue, albeit more advanced than others. The company has released it publicly as a SPAC Company in July last year after merging with Churchill Capital IV.

The company value has had a turbulent day. Lucid stocks increased by about 10% during normal trading, adding $ 2.63 to its share price per share. However, after the company reported its results, its shares fell, erasing 10.8% of its value, or about $ 3.14 per share.

All in all, Lucid has a small amount of value today as of writing time. Why? Revenue came in below expectations. But like all the companies like Lucid that were busy building and waiting for the next sale, there is more to the story.

To better handle Lucid’s Q4, and the full year 2021, the results will begin by looking at its non-earning results, including customer bookings and the like. Then, we will examine its financial implications in detail.

Booking and power

After announcing 17,000 bookings last November of Lucid Air, a luxury sedan of a company that prides itself on the longest and largest of its kind she shudders “frunk” in the market, customer bookings reached 25,000 from Monday, indicating sales of more than $ 2.4 billion.

The first delivery of Lucid Air, which Referus drove for the first time in September, began in November. Only 125 Airs were delivered in the fourth quarter, but so far, there have been a total of 300 – a sign that Lucid may intensify production and delivery.

The EV company noted that production currently exceeds 400 vehicles and that by 2022 the list of 12,000 to 14,000 Lucid Air vehicles should be considered, down from the 20,000 units that Lucid had promised in its time. Q3 income. This will be powered by Lucid production facilities in Casa Grande, Arizona, where the company’s 2.85-million-square-foot expansion is underway, bringing the production capacity from 34,000 of its current Lucid Airs annually to 90,000 units, the company said.

Lucid also built a a new production center in the Kingdom of Saudi Arabia that it expects to end by 2025. The company estimates that the Saudi plant could generate up to $ 3.4 billion over the next 15 years. On the other hand, working with Lucid assists Saudi Arabia’s goal of transforming and diversifying its economy by building sustainable energy and transportation.

But the relationship between Lucid Motors and Saudi Arabia is much more strained than the latest deal. Lucid was founded in 2007 as Atieva, a company that had a keen interest in supplying the emerging EV market instead of producing cars itself. It focused on the machinery and brand of Lucid Motors in 2016, but had a problem raising money. The company almost died before being rescued by the Saudi Sovereign fund’s $ 1.3 billion in 2018.

Financial results

Lucid generated Q4 2021 revenue of $ 26.4 million. The company sold its Lucid Air Dream Edition cars for $ 21.3 million during that period, which means its profits have a power of up to 1,111 million, depending on choice and other options. A limp, weak, slow-moving, high-pokey car from the company has to push only 800 horses, we are quick to add.

Regardless, bringing 125 cars after building a total of 400 so far may seem small, but for the EV company, access to the production ramp is a milestone.

Delivery was not enough to push Lucid closer to the break. In fact, the company is always profitable with humor. Benefit costs reached $ 151.5 million in the fourth quarter, research costs were $ 163.6 million and SG&A costs amounted to $ 197.0 million. In total, Lucid reported a loss of $ 485.7 million in Q4 2021. Or, quarterly, in every Lucid car delivered in the last three months of 2021, it lost $ 3.9 million in terms of performance.

Investors expected Lucid to report $ 36.74 million in the fourth quarter, via Yahoo Finance. GAAP company profits per share losses of $ 0.64 failed to please the growing community.

In terms of the full year, Lucid’s investment momentum in scale and R&D is even more apparent. In the calendar year, compared to $ 27.1 million in revenue, Lucid posted $ 1.53 billion in operating losses, and GAAP losses of $ 4.75 billion.

You could look at a company with $ 2.58 billion in cash flow all year round and say, hey, that’s a lot. But Lucid closed 2021 with cash and similar items worth $ 6.26 billion, so it remains full-fledged. A company may be able to finance it for a period of time, even if it fails to pay its expenses at the time of the interest. Lucid manages about $ 2 billion in long-term debt, to say the least.

Looking ahead, investors expect the company’s revenue to reach $ 2.01 billion this year. and with Yahoo Finance. Is that number possible? However, with 125 cars delivered in Q4 2021 and revenue worth $ 21.3 million on that sale, Lucid had an ASP of $ 170,000 per quarter. If it manages to build 13,000 cars, the center of its direction, sells them all and adheres to its Q4 ASP, the company will see $ 2.22 billion in revenue by 2022. That is the case with the bull.

The Bears may realize that the company’s ASP should go down in scale, and that the company won’t sell all the cars built this year, but, hey, the battery charged in the middle is half full, right, empty. ?