Lucid keeps 2022 production targets, raises electric vehicle prices

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Lucid Group Inc. shares edged higher late Thursday after the EV maker reported a narrower-than-expected first-quarter loss and said its production volume remains on track despite ongoing supply-chain problems.

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Lucid LCID,
lost $81 million, or 5 cents a share, in the quarter, compared with a loss of $2.9 billion, or $89.29 a share, in the year-ago quarter.

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Revenue reached $58 million, from $313,000, thanks to the delivery of 360 vehicles, Lucid said.

FactSet consensus called for a loss of 31 cents a share on sales of $56 million.

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There’s “strong demand” for the Lucid Air, the EV maker’s luxury electric sedan, and reservations have topped 30,000, Lucid said. That translates to potential sales of $2.9 billion, it said.

Lucid kept its 2022 production volume outlook of between 12,000 vehicles and 14,000 vehicles.

“We continued to make progress in the first quarter of 2022 despite on-going global supply chain challenges,” Chief Executive Peter Rawlinson said in a statement.

Lucid is “nearing completion” of deliveries of Lucid Air “dream edition,” and began deliveries of a Lucid Air grand touring model, Rawlinson said.

The EV maker also announced price increases on most of its electric vehicle models beginning June 1. Current prices will be honored for existing reservations and any reservations made by May 31, Lucid said.

“The world has changed dramatically from the time we first announced Lucid Air pricing in September 2020,” Rawlinson said.

The Air will start at $87,400 for a base model and go up to $154,000 for the grand touring model, the company said. A “grand touring performance” model, announced two weeks ago, will remain at $179,000, Lucid said.

Lucid ended the quarter with nearly $5.4 billion of cash on hand, “which we believe is sufficient to fund the company well into 2023,” Chief Financial Officer Sherry House said.

Lucid last week said it had signed an agreement to sell up to 100,000 vehicles over a 10-year period to Saudi Arabia’s government, including an initial commitment to buy 50,000 vehicles.

The EV maker said in March it planned to build a factory in Saudi Arabia, which would be the maker’s second plant after the one it maintains in Arizona.

At the time, the company also cut its production outlook citing the supply-chain problems.

Lucid shares have lost 30% this year, compared with losses of around 13% for the S&P 500 index. SPX,


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