Lucid’s latest financial report presents troubling news for investors. Lucid is an EV company based in California that’s best known for manufacturing the Air Sedan.
Lucid’s revenue for Q3 was $137.8 million, down from $195.5 million in the same period last year. With expenses of $768.7 million, the company’s net losses amounted to $630.9 million.
Lucid’s net losses grew by over $100 million compared to Q3 2022. With 1,456 vehicles sold, each Lucid vehicle resulted in an approximate loss of $433,000.
Although this is an improvement from the $544,000 loss reported in Q2, it’s still a substantial amount considering the marque’s most expensive vehicle costs approximately $250,000.
According to InsideEVs, Lucid assembled 1,550 cars in Q3. This is down over 50% from Q4 last year, when the company assembled 3,493 units.
Consequently, Lucid has reduced its 2023 production goal to 8,000–8,500 vehicles. The original goal was 10,000–14,000 vehicles.
For the first nine months of this year, Lucid’s losses amounted to $2.17 billion. This exceeded the company’s $1.83 billion in losses during the first nine months of 2022.
Bright spots
Nevertheless, there are multiple reasons for Lucid to be optimistic about the future.
As of the end of Q3, the Californian carmaker had $5.45 billion in cash. This will be enough to fund the company through 2025.
The $5.45 billion cash reserve supports the launch of Lucid’s second model, the Gravity SUV. The Gravity could lead to a major spike in Lucid’s sales.
The Gravity will be the longest-range electric SUV on the market. Although details have yet to be confirmed, some analysts believe that the Gravity could offer a range of up to 550 miles (885 km).
Moreover, the Saudi government is placing substantial confidence in Lucid. The Saudi government will purchase 50,000 Lucid Air vehicles over the next decade. This will give Lucid a reliable long-term customer base.
Image Source: Martin Woods
