Manufacturing

Lucid reports higher revenue but steeper losses

November 8, 2024, 5:27 PM

Lucid has begun taking orders for its Gravity electric SUV

Q3 revenue above expectations
Lucid losses almost $1bn
On track for delivery target

Saudi-backed US luxury electric vehicle maker Lucid reported a larger net loss than last year in the third quarter, but said revenue rose 45 percent, slightly ahead of Wall Street expectations.

The company’s losses of $992.5 million in Q3 compared with $630.9 million in 2023.

Revenue reached $200 million, narrowly beating estimates of $198 million.

Lucid said it delivered 2,781 vehicles during the quarter and expects to reach its target of 9,000 in 2024.

“Our momentum continues with our third consecutive quarter of record deliveries,” said Peter Rawlinson, CEO and CTO at Lucid.

Lucid announced that it has started taking orders in the US for its electric Gravity SUV, which remains on track to go into production this year.

“We continue to see improvements to gross margin performance as our cost reduction efforts are gaining momentum,” said Gagan Dhingra, interim CFO at Lucid.

The company recently completed a $1.75 billion capital raise, which included a public offering of nearly 262.5 million shares of its common stock.

Rawlinson said the funding will “further secure the future of the company by extending its financial runway well into 2026″.

Shares in the Nasdaq-listed company were up 3.8 percent at close on Thursday.

Saudi Arabia’s Public Investment Fund bought an extra 374.7 million shares in October, maintaining its 58.8 percent ownership in the carmaker.

In August, Lucid received a cash injection of $1.5 billion from its majority stockholder, Ayar Third Investment Company, an affiliate of PIF.

The company’s factory in Jeddah is set to move to full production, with a target capacity of 150,000 cars a year within three years, according to its robotics provider, Rockwell Automation.

“Currently it’s for domestic use but when the expanded plant is done, they will cover all Middle East and Asia as well,” regional vice-president Ediz Eren said at the Adipec energy exhibition in Abu Dhabi.

Shares in rival EV maker Tesla climbed by as much as 15 percent as investors wager it will be a major beneficiary of Donald Trump’s impending return to the White House. Elon Musk was a prominent supporter of Trump in the run-up to this week’s election.

Musk said last month that he expects Tesla vehicle sales to grow 20 percent to 30 percent next year.

Rivian, backed by Saudi conglomerate Abdul Latif Jameel and Amazon, also secured funding to ensure survival, with a $5 billion injection from Volkswagen to form a technology joint venture. Its third-quarter revenue slumped to $874 million, well below the $989 million that analysts estimated.