LCID
Lucid Group, INC
NASDAQ
10-Q: Lucid Group Reports Q1 2024 Results, Secures $1 Billion Investment
Sentiment:
Quarterly Report
6 May 2024 4:14 PM
Lucid Group's Q1 2024 results show a revenue increase but continued net losses, alongside a significant $1 billion investment from Ayar Third Investment Company.
Worse than expected
Despite increased revenue, the company's net loss remains substantial, indicating that it is not yet on a path to profitability.
Capital raise
Lucid secured a $1 billion investment through the issuance of Redeemable Convertible Preferred Stock to Ayar Third Investment Company.
The company may need to raise additional funds through equity, equity-linked or debt financings in the future.
Summary
- Lucid Group reported a revenue of $172.7 million for the first quarter of 2024, up from $149.4 million in the same period last year.
- The company's net loss for the quarter was $680.9 million, compared to a net loss of $779.5 million in Q1 2023.
- Cost of revenue decreased to $404.8 million from $500.5 million year-over-year, primarily due to lower inventory write-downs.
- Research and development expenses increased to $284.6 million, up from $229.8 million in the prior year.
- Selling, general, and administrative expenses rose to $213.2 million from $168.8 million year-over-year.
- Lucid secured a $1 billion investment through the issuance of Redeemable Convertible Preferred Stock to Ayar Third Investment Company.
- The company's cash, cash equivalents, and investments totaled $4.6 billion as of March 31, 2024.
- Lucid's accumulated deficit reached $10.9 billion as of March 31, 2024.
Sentiment
Score: 5
Explanation: The document presents a mixed picture. While there is revenue growth and a significant investment, the continued substantial losses and reliance on external funding temper the positive aspects. The risks outlined also contribute to a neutral to slightly negative sentiment.
Positives
- Revenue increased by 16% year-over-year, indicating growing sales.
- The net loss decreased compared to the same quarter last year, suggesting improved cost management.
- Cost of revenue decreased by 19% year-over-year, primarily due to lower inventory write-downs.
- The company secured a significant $1 billion investment, bolstering its financial position.
Negatives
- The company continues to incur substantial net losses, with a $680.9 million loss in Q1 2024.
- Research and development expenses increased by 24% year-over-year, indicating high ongoing investment costs.
- Selling, general, and administrative expenses increased by 26% year-over-year, reflecting growing operational costs.
- The accumulated deficit reached $10.9 billion, highlighting the company's ongoing losses.
Risks
- The company faces risks associated with a global economic recession, which could reduce demand for its luxury vehicles.
- Lucid is dependent on single-source suppliers, which could disrupt production if these suppliers fail to deliver.
- The company has limited experience in high-volume manufacturing, which could lead to production challenges.
- There are risks associated with the development and deployment of autonomous driving technology.
- The company is subject to evolving data privacy and cybersecurity laws, and any failure to comply could result in significant fines and liability.
- The company is dependent on key personnel, and the loss of such personnel could impair its ability to expand its business.
- The company may not be able to obtain additional capital on commercially reasonable terms, or at all.
- The company is subject to substantial laws and regulations that could impose substantial costs, legal prohibitions or unfavorable changes upon its operations or products.
- The company may fail to adequately obtain, maintain, enforce, defend and protect its intellectual property.
- The company is a controlled company, and its stockholders do not have the same protections afforded to stockholders of companies that are not controlled companies.
- PIF and Ayar beneficially own a significant equity interest in the company and have significant influence over the company, which could decrease the relative ownership interest and voting power other holders of the company's common stock have over the company.
- The holders of the company's Redeemable Convertible Preferred Stock are entitled to vote their shares of the Redeemable Convertible Preferred Stock on an as-converted to common stock basis and have rights to approve certain actions, which reduces the relative voting power of the holders of the company's common stock.
- The settlement of the company's obligations upon conversion, redemption, or repurchase of its Redeemable Convertible Preferred Stock is expected to dilute the ownership of common stockholders and may adversely affect the market price of the company's common stock.
- The company's Redeemable Convertible Preferred Stock has rights, preferences and privileges that are not held by, and are senior to the rights of, the company's common stockholders.
Future Outlook
The company expects its current sources of liquidity, along with projected cash flows from operations, to provide adequate liquidity for at least the next 12 months. Capital expenditures are expected to be approximately $1.5 billion for fiscal year 2024.
Management Comments
- Management believes that investing in its direct-to-consumer sales and service model will be critical to deliver and service the Lucid electric vehicles it manufactures and sells.
- Management anticipates its cumulative spending on capital expenditures to be approximately $1.5 billion for the fiscal year 2024 to support its continued commercialization and growth objectives.
Industry Context
The report reflects the challenges and opportunities faced by electric vehicle manufacturers, including the need for significant capital investment, managing supply chains, and navigating a competitive market. The company's focus on luxury electric vehicles positions it in a specific segment of the market, which may be more sensitive to economic downturns.
Comparison to Industry Standards
- Lucid's revenue growth of 16% year-over-year is a positive sign, but its continued net losses are a concern, similar to other early-stage EV companies like Rivian and Fisker, which are also experiencing significant losses as they scale production.
- The company's high R&D and SG&A expenses are typical for companies in the EV sector, as they invest heavily in technology and market expansion, similar to Tesla's early years.
- The $1 billion investment from Ayar is a significant boost, but the company's reliance on external funding is a common theme among EV startups, as seen with other companies like NIO and XPeng.
- Lucid's focus on a direct-to-consumer model is similar to Tesla, but it lacks the established service network of traditional automakers like BMW or Mercedes-Benz, which may pose challenges in the long term.
Stakeholder Impact
- Shareholders face potential dilution from the issuance of new shares and the conversion of preferred stock.
- Employees may be affected by restructuring plans and changes in compensation.
- Customers may benefit from new vehicle models and improved technology, but may also be affected by potential delays or recalls.
- Suppliers face risks related to the company's financial performance and ability to meet purchase commitments.
- Creditors face risks related to the company's ability to service its debt.
Next Steps
- The company plans to continue expanding its manufacturing facilities and retail locations.
- Lucid intends to launch additional vehicles, including the Gravity SUV program, in late 2024.
- The company will continue to develop its technology and explore strategic partnerships.
Legal Proceedings
- The company is involved in ongoing litigation related to securities class actions and shareholder derivative actions.
- The company is also involved in a legal dispute regarding its direct sales model in Illinois.
Related Party Transactions
- Ayar Third Investment Company, an affiliate of PIF, purchased $1 billion of Redeemable Convertible Preferred Stock.
- Lucid has various agreements with related parties, including SIDF, MISA, GIB, and Al Bawani, for loans, economic support, and construction services.
- Lucid has an EV Purchase Agreement with the Government of Saudi Arabia.
- Lucid has a strategic technology and supply arrangement with Aston Martin.
Key Dates
- December 14, 2021: Date of indenture for the 1.25% Convertible Senior Notes due 2026.
- February 27, 2022: Date of SIDF Loan Agreement and announcement of Saudi Arabia manufacturing plant.
- March 28, 2023: Date of announcement of the company's restructuring plan.
- March 24, 2024: Date of the 2024 Subscription Agreement with Ayar.
- March 29, 2024: Date of issuance of Redeemable Convertible Preferred Stock to Ayar.
- March 31, 2024: End of the first quarter of 2024.
Keywords
electric vehicles, EV, luxury vehicles, automotive, manufacturing, financial results, investment, preferred stock, Ayar, Lucid Air, Saudi Arabia, technology, supply chain
LCID
Lucid Group, INC
NASDAQ
Sector: TBD
Filings with Classifications
Capital raise
17 July 2025 8:38 AM
Strategic Partnership Announcement
- Lucid and SMB Holding Corporation (a subsidiary of Uber) entered into a Subscription Agreement for a private placement.
- SMB Holding Corporation agreed to purchase Lucid Class A common stock equal to $300 million in cash.
- The purchase price per share is the arithmetic average of the daily volume-weighted average price of Lucid's common stock over 30 consecutive trading days ending prior to the VPA execution.
- The private placement is expected to close in Q3 2025, subject to regulatory approvals and customary closing conditions.
- Proceeds will fund non-recurring engineering costs for the Lucid Gravity Plus vehicles and general corporate purposes.
- SMB Holding Corporation may not transfer the shares for 18 months after closing.
Better than expected
17 July 2025 8:38 AM
Strategic Partnership Announcement
- Lucid secured a minimum order of 20,000 vehicles, providing a substantial revenue pipeline.
- A $300 million private placement from Uber's subsidiary provides capital and validates the partnership.
- The strategic partnership with Uber and Nuro positions Lucid at the forefront of the autonomous robotaxi market.
Capital raise
6 June 2025 4:07 PM
Annual Meeting Results
- The Amended and Restated 2021 Stock Incentive Plan was approved, increasing the number of shares of Class A common stock available for issuance by 184,000,000 shares. While primarily for compensation, this represents a potential future issuance of equity that could dilute existing shareholders.
Worse than expected
6 May 2025 4:09 PM
Quarterly Report
- The company's net loss, while improved year-over-year, still indicates that the company is not profitable.
- The company's gross margin is still negative, indicating that the company is selling vehicles at a loss.
Worse than expected
6 May 2025 4:08 PM
Earnings Release
- The company reported a GAAP net loss per share of $(0.24) for Q1 2025.
Capital raise
10 April 2025 9:54 PM
Beneficial Ownership Update
- Lucid Group, Inc. priced an offering of $1,100,000,000 aggregate principal amount of 5.00% convertible senior notes due 2030.
- The settlement of the issuance of these notes occurred on April 8, 2025.
- Ayar Third Investment Company entered into a privately negotiated prepaid forward share purchase transaction for $430,000,000.80 in connection with the notes offering, which is intended to facilitate hedging by investors in the notes.
Capital raise
8 April 2025 8:05 PM
Pricing Announcement
- Lucid Group completed a private offering of $1.1 billion in 5.00% Convertible Senior Notes due 2030.
- The notes were offered to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933.
- The initial purchasers had an option to purchase an additional $100 million in notes, which they exercised in full.
- Ayar Third Investment Company entered into a prepaid forward transaction to purchase approximately $430.0 million of Lucid's common stock.
Capital raise
2 April 2025 4:22 PM
Capital Raise Announcement
- Lucid is commencing a private offering of $1,000,000,000 aggregate principal amount of its Convertible Senior Notes due 2030.
- The initial purchasers of the notes will have an option to purchase up to an additional $100,000,000 aggregate principal amount of the notes.
- The notes will be offered only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act.
Capital raise
25 February 2025 4:12 PM
Annual Results
- The company will require additional capital to support business growth, and this capital might not be available on commercially reasonable terms, or at all.
- The company is pursuing additional financing through equity, equity-linked, or debt financing in the future.
Delay expected
25 February 2025 4:12 PM
Annual Results
- The Midsize platform is currently in development, and is scheduled for start of production in late 2026.
Worse than expected
25 February 2025 4:12 PM
Annual Results
- The company reported a net loss of $2.7 billion for the year ended December 31, 2024.
- The company expects to continue to incur substantial losses and increasing expenses in the foreseeable future.
Worse than expected
25 February 2025 4:09 PM
Earnings Release
- Lucid reported a GAAP net loss per share of $(1.25) for the full year 2024, indicating continued losses despite increased production and deliveries.
Capital raise
7 November 2024 4:10 PM
Quarterly Report
- Lucid completed a public offering and private placement in October 2024, raising approximately $1.7 billion in gross proceeds.
- The company issued 100,000 shares of Series A Redeemable Convertible Preferred Stock to Ayar for $1.0 billion in March 2024.
- The company issued 75,000 shares of Series B Redeemable Convertible Preferred Stock to Ayar for $750 million in August 2024.
Worse than expected
7 November 2024 4:10 PM
Quarterly Report
- The company's net loss of $992.5 million in Q3 2024 and $2.3 billion for the nine months ended September 30, 2024, is worse than expected, despite a 45% increase in revenue.
Worse than expected
7 November 2024 4:07 PM
Quarterly Report
- The company reported a significant net loss, indicating that it is not yet profitable.
- The cost of revenue is still significantly higher than the revenue, indicating that the company is not yet efficient in its production.
Capital raise
7 November 2024 4:07 PM
Quarterly Report
- Lucid completed a capital raise of approximately $1.75 billion in October 2024.
- The capital raise is intended to extend the company's financial runway well into 2026.
- The Public Investment Fund and other institutional investors participated in the capital raise.
Capital raise
4 November 2024 6:00 AM
SEC Form 4
- Lucid Group completed an underwritten public offering of 262,446,931 shares of its Class A common stock for aggregate gross proceeds of approximately $680 million.
- Ayar Third Investment Company purchased 374,717,927 shares of Issuer Class A common stock in a private placement for an aggregate purchase price of approximately $971 million.
- Ayar purchased from the Issuer an additional 21,470,459 shares of Common Stock for aggregate purchase price of approximately $56 million in a private placement.
Capital raise
18 October 2024 6:09 AM
Capital Raise Announcement
- Lucid Group is raising approximately $1.65 billion through a combination of a public offering and a private placement.
- The private placement with Ayar Third Investment Company will generate approximately $971 million.
- The public offering is expected to generate approximately $680 million.
- Ayar will purchase additional shares to maintain its ownership percentage.
Worse than expected
16 October 2024 4:42 PM
Capital Raise Announcement and Preliminary Results
- The estimated loss from operations of $765 million to $790 million is significant and indicates that the company is not yet profitable.
Capital raise
16 October 2024 4:42 PM
Capital Raise Announcement and Preliminary Results
- Lucid is conducting a public offering of 262,446,931 shares of its common stock.
- Ayar Third Investment Company intends to purchase 374,717,927 shares in a private placement concurrently with the public offering.
- The underwriter has a 30-day option to purchase up to 39,367,040 additional shares.
- Ayar intends to purchase additional shares if the underwriter exercises its option to maintain its ownership stake.
Better than expected
10 September 2024 9:05 AM
Technology and Manufacturing Day Presentation
- Lucid has already delivered more cars in 2024 than in all of 2023, indicating better than expected production and delivery numbers.
Capital raise
19 August 2024 9:04 AM
Private Placement Announcement
- Lucid Group has raised $750 million through the sale of Series B Convertible Preferred Stock to Ayar Third Investment Company.
- The shares were sold in a private placement.
- The company may need to raise additional capital in the future to fund its operations and growth.
Worse than expected
5 August 2024 4:10 PM
Quarterly Report
- The company's net loss of $643.4 million for the quarter and $1.324 billion for the six months ended June 30, 2024, is worse than expected.
- The company's accumulated deficit of $11.5 billion as of June 30, 2024, is worse than expected.
Capital raise
5 August 2024 4:10 PM
Quarterly Report
- Lucid issued 100,000 shares of Series A redeemable convertible preferred stock to Ayar for $1.0 billion in gross proceeds.
- The company entered into a $750 million five-year unsecured delayed draw term loan credit facility with Ayar on August 4, 2024.
- Lucid also entered into a subscription agreement with Ayar on August 4, 2024, for the purchase of 75,000 shares of Series B convertible preferred stock for $750 million.
Worse than expected
5 August 2024 4:08 PM
Quarterly Report
- The company's net loss of $790.251 million and negative free cash flow of $741.302 million indicate worse than expected financial performance.
Capital raise
5 August 2024 4:08 PM
Quarterly Report
- Lucid announced a commitment of $1.5 billion from an affiliate of the Public Investment Fund (PIF).
- This investment is expected to provide sufficient liquidity into at least the fourth quarter of 2025.
Capital raise
5 August 2024 4:07 PM
Capital Raise Announcement
- Lucid Group has secured $750 million through a private placement of Series B Convertible Preferred Stock.
- The company has also entered into a $750 million term loan agreement with Ayar Third Investment Company.
Capital raise
6 June 2024 4:10 PM
Annual Meeting Results
- The approval of the increase in shares available for issuance under the stock incentive plan could be used for future capital raising activities.
Worse than expected
24 May 2024 6:58 AM
Restructuring Announcement
- The company is reducing its workforce and incurring significant restructuring charges, which is generally viewed negatively by investors.
Capital raise
6 May 2024 4:14 PM
Quarterly Report
- Lucid secured a $1 billion investment through the issuance of Redeemable Convertible Preferred Stock to Ayar Third Investment Company.
- The company may need to raise additional funds through equity, equity-linked or debt financings in the future.
Worse than expected
6 May 2024 4:14 PM
Quarterly Report
- Despite increased revenue, the company's net loss remains substantial, indicating that it is not yet on a path to profitability.
Capital raise
6 May 2024 4:06 PM
Quarterly Report
- Lucid successfully raised $1.0 billion through a private placement to an affiliate of the Public Investment Fund (PIF).
Worse than expected
6 May 2024 4:06 PM
Quarterly Report
- The company reported a significant net loss of $680.859 million, which is worse than expected.
- The cost of revenue was significantly higher than the revenue generated, indicating challenges in achieving profitability.
Capital raise
25 April 2024 6:06 AM
Proxy Statement
- Ayar agreed to purchase 100,000 shares of our Series A Convertible Preferred Stock for an aggregate purchase price of $1,000,000,000 in a private placement.
- On March, 29, 2024, we issued the shares of Convertible Preferred Stock pursuant to the March 2024 Subscription Agreement and received aggregate proceeds of $1,000,000,000.
Capital raise
29 March 2024 5:08 PM
8-K Filing
- Lucid Group has raised $1 billion through the sale of Series A Convertible Preferred Stock to Ayar Third Investment Company.
- The capital raise is a private placement, not a public offering.
Capital raise
25 March 2024 8:07 AM
Private Placement Announcement
- Lucid Group is raising $1 billion through a private placement of Series A Convertible Preferred Stock.
- The investor is Ayar Third Investment Company, an affiliate of Saudi Arabia's Public Investment Fund.
- The preferred stock is convertible into common stock, potentially diluting existing shareholders.
- The capital raise is expected to close within 10 business days.
Delay expected
27 February 2024 4:09 PM
Annual Results
- The document mentions delays in the acceptance of the Project under the Integration Agreement, which may impact timelines set out in the Supply Agreement.
Capital raise
27 February 2024 4:09 PM
Annual Results
- The document mentions that Lucid will require incremental investment to meet AML's demand beyond the committed supply, and AML will decide whether to fund such investment.
- The document also mentions that Lucid may be eligible for a loan pursuant to the Advanced Technology Vehicles Manufacturing Loan Program administered by the U.S. Department of Energy.
Worse than expected
27 February 2024 4:09 PM
Annual Results
- The company's net loss of $2.8 billion was worse than expected, indicating ongoing financial challenges.
- The company's revenue decreased slightly in 2023 compared to 2022, which was worse than expected.
- The company's cost of revenue increased significantly in 2023, which was worse than expected.
Worse than expected
21 February 2024 4:07 PM
Quarterly Report
- Lucid's net loss of $2.83 billion for the year is significantly worse than the previous year's loss of $1.3 billion.
- The company's negative free cash flow of $3.4 billion for the year is also a significant concern.
- The cost of revenue is significantly higher than the revenue generated, indicating a lack of profitability.
Capital raise
21 February 2024 4:07 PM
Quarterly Report
- The document mentions that Lucid is reliant on future capital raises and funding strategies.
- The company's negative free cash flow and significant losses suggest that additional capital will be needed to fund operations.
Delay expected
15 February 2024 5:17 PM
Current Report
- The 2024 Annual Meeting is delayed by more than 30 days after the anniversary of the 2023 meeting.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.