Lucid inventory (LCID) tumbled as the posh electrical car maker introduced second quarter deliveries that missed Wall Road expectations.
For the quarter, Lucid mentioned it delivered 1,404 automobiles, lacking Wall Road’s estimate of 1,873, and produced 2,173 automobiles within the quarter. In Q1, Lucid delivered 1,406 automobiles and produced 2,314, that means the corporate did not match its prior interval’s output. In Might, the California-based automaker mentioned it was on observe to supply 10,000 EVs in 2023.
Lucid’s wrestle to fulfill its expectations is available in distinction to rivals like Rivian and legacy automakers like GM and Ford, which have met or exceeded their EV manufacturing targets.
“The [deliveries] disclosure was extraordinarily disappointing, as LCID posted a sequential drop in volumes from the two,314 items it produced and 1,406 items it delivered in Q1,” CFRA analyst Garrett Nelson wrote in a word at present. “We proceed to view LCID as a damaged progress story and its ramp-up charge has been notably disappointing contemplating its newer, state-of-the-art manufacturing facility in Casa Grande, Arizona.”
A part of the difficulty is that the Lucid Air, its sole EV, has a price ticket that begins round $90,000, which can be hurting demand. In Q1 the corporate started providing its personal model of the federal authorities’s $7,500 tax credit score to spice up gross sales, although that deal has been faraway from the corporate’s web site.
Lucid additionally mentioned it started “materials shipments” of its EVs to the Kingdom of Saudi Arabia, the place the corporate has a deal to ship 100,000 EVs to the dominion to be used by the federal government. Final month, Saudi Arabia’s Personal Funding Fund, which owns over 60% of the corporate, agreed to purchase 265.7 million extra shares of Lucid value $1.8 billion. Lucid intends to construct a manufacturing facility within the kingdom with a deliberate annual capability of 155K EVs a 12 months.
It was not all adverse information for Lucid final quarter, nonetheless, because it struck a “long-term strategic know-how partnership” with British luxurious automaker Aston Martin (ARGGY) to produce parts and techniques to energy future Aston Martin EVs.
A possible income stream from promoting Lucid IP and parts was cheered by buyers, with Lucid’s CEO Peter Rawlinson claiming that licensing Lucid’s tech has “mouthwatering potential” and different automobile firms have approached the EV maker.
Lucid mentioned it could launch its second quarter monetary outcomes after the bell on Monday, August 7.
Pras Subramanian is a reporter for Yahoo Finance. You possibly can comply with him on Twitter and on Instagram.
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