Lucid Stocks Dip Following 2Q Results and Revised Production Outlook
2022.08.04 18:14
Lucid (LCID) Stocks Dip Following 2Q Results and Revised Production Outlook
By Michael Elkins
Shares of Lucid Group (NASDAQ:LCID) were down 12.5% in early trading Thursday after the company reported 2Q results and lowered forward-looking commentary during the earnings call.
The electric vehicle company reported 2Q adjusted EPS of ($0.33), $0.06 better than what analysts were expecting. Revenue came in at $97.3 million versus the consensus estimate of $145.49 million.
LCID reported a non-GAAP adjusted EBITDA loss of $414 million, coming in ahead of analyst estimates of a $583 million loss. The Company reported strong customer demand for Lucid Air with reservations over 37,000, representing potential sales of approximately $3.5 billion. In addition, Lucid reported first-half production of 1,405 vehicles.
LCID abstained from providing any updates to its near-term financial targets. However, the company lowered its 2022 production outlook to 6-7k vehicles from its prior guidance for 12k-14k vehicles, which it attributed to supply chain and logistics challenges.
Lucid CEO and CTO, Peter Rawlinson commented on the challenges during the call and remains confident in the company’s ability to overcome them.
“Our revised production guidance reflects the extraordinary supply chain and logistics challenges we encountered,” said Rawlinson. “We’ve identified the primary bottlenecks, and we are taking appropriate measures – bringing our logistics operations in-house, adding key hires to the executive team, and restructuring our logistics and manufacturing organization. We continue to see strong demand for our vehicles, with over 37,000 customer reservations, and I remain confident that we shall overcome these near-term challenges.”
A Citi analyst heard the comments made on the call and believes that management sounded “reasonably confident” but has a sense that the process won’t happen quickly. “Our impression is that the H2 production ramp is probably more Q4 weighted,” he said in a note.
A Bank of America Research analyst, however, remains confident in the company and views Lucid as “one of the most attractive among the universe of start-up electric vehicle automakers and also a relative competitive threat to the universe of incumbent automakers.”
