LCID
Lucid Group, INC
NASDAQ
10-Q: Lucid Group Reports Q3 2024 Results, Revenue Up 45% Year-Over-Year
Sentiment:
Quarterly Report
7 November 2024 4:10 PM
Lucid Group's Q3 2024 results show a 45% increase in revenue compared to the same period last year, driven by higher vehicle deliveries, while also highlighting ongoing losses and strategic financial moves.
Worse than expected
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.
Capital raise
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.
Summary
- Lucid Group's Q3 2024 revenue reached $200 million, a 45% increase compared to Q3 2023, primarily due to higher vehicle deliveries.
- The company's net loss for the quarter was $992.5 million, and the net loss attributable to common stockholders was $949.6 million.
- For the nine months ended September 30, 2024, revenue totaled $573.4 million, a 31% increase year-over-year, while the net loss was $2.3 billion.
- Lucid's operating expenses for the quarter were $558 million, including $324.4 million in research and development and $233.6 million in selling, general, and administrative costs.
- The company's cash, cash equivalents, and investments totaled approximately $4.0 billion as of September 30, 2024.
- Lucid has reduced its contractual minimum commitment with Panasonic for battery supply from approximately $4.8 billion to approximately $2.8 billion.
- The company completed a public offering and private placement in October 2024, raising approximately $1.7 billion in gross proceeds.
Sentiment
Score: 4
Explanation: The document presents mixed signals. While revenue growth is positive, the substantial net losses and ongoing operational challenges temper the overall outlook. The recent capital raise provides some financial stability, but the company still faces significant risks and uncertainties.
Positives
- Revenue increased by 45% in Q3 2024 compared to Q3 2023, indicating strong sales growth.
- The company has successfully reduced its contractual minimum commitment with Panasonic for battery supply, potentially lowering future costs.
- Lucid raised approximately $1.7 billion in gross proceeds through a public offering and private placement in October 2024, strengthening its financial position.
- The company completed the paint shop and stamping portions of the AMP-1 phase 2 manufacturing facility during the three months ended September 30, 2024.
Negatives
- Lucid continues to experience significant net losses, with a $992.5 million loss in Q3 2024 and a $2.3 billion loss for the nine months ended September 30, 2024.
- The company's operating expenses remain high, particularly in research and development and selling, general, and administrative areas.
- Lucid recorded write-downs of $154.9 million and $446.9 million for the three and nine months ended September 30, 2024, respectively, to reduce its inventories to its net realizable values and for any excess or obsolete inventories, as well as losses from firm purchase commitments.
- The company is dependent on single-source suppliers, which could lead to supply chain disruptions.
Risks
- Lucid faces risks related to a potential global economic recession, which could reduce demand for its luxury vehicles.
- The company is dependent on a limited number of vehicle models, making it vulnerable to changes in consumer preferences.
- Lucid's direct-to-consumer model requires significant investment in sales, service, and marketing operations.
- The company is subject to risks associated with international operations, including unfavorable regulatory, political, tax, and labor conditions.
- Lucid faces challenges in providing charging solutions for its vehicles, both domestically and internationally.
- The company is subject to evolving laws and regulations related to data privacy and cybersecurity.
- Lucid may not be able to accurately estimate the supply and demand for its vehicles, which could result in inefficiencies.
- The company is subject to risks associated with autonomous driving and advanced driver assistance system technology.
- Lucid is dependent on its suppliers, the majority of which are single-source suppliers, and the inability of these suppliers to deliver necessary components of its products according to the schedule and at prices, quality levels and volumes acceptable to the Company, or its inability to efficiently manage these components, could have a material adverse effect on the Company’s results of operations and financial condition.
Future Outlook
Lucid expects to launch additional vehicles, including the Lucid Gravity SUV in late 2024 and the Midsize platform in late 2026, and continues to expand its manufacturing facilities and retail locations.
Management Comments
- Management is focused on scaling production, expanding its retail network, and developing new vehicle models.
- Management is working to manage costs and improve operational efficiency.
Industry Context
The report reflects the ongoing challenges and opportunities in the electric vehicle market, including the need for significant capital investment, supply chain management, and technological innovation, while also highlighting the increasing competition in the luxury EV segment.
Comparison to Industry Standards
- Lucid's revenue growth of 45% in Q3 2024 is notable compared to some other EV startups, but its substantial net losses are also a common theme in the industry.
- Tesla, a major competitor, has achieved higher production volumes and revenue, but also faces challenges in profitability and supply chain management.
- Traditional automakers entering the EV market, such as BMW and Mercedes-Benz, have established manufacturing and distribution networks, but are still in the early stages of scaling their EV production.
- Rivian, another EV startup, has also reported significant losses while ramping up production, highlighting the capital-intensive nature of the industry.
- Lucid's focus on luxury and high-performance EVs positions it differently from mass-market EV manufacturers, but also exposes it to risks associated with luxury goods demand.
Stakeholder Impact
- Shareholders face the risk of dilution and potential loss of investment due to ongoing losses and potential future capital raises.
- Employees may be affected by restructuring plans and changes in the company's operations.
- Customers may experience delays in vehicle deliveries or service issues.
- Suppliers may face uncertainty due to changes in Lucid's production plans and supply chain management.
Next Steps
- Lucid plans to continue expanding its manufacturing facilities and retail locations.
- The company will focus on the development and launch of new vehicle models, including the Lucid Gravity SUV and the Midsize platform.
- Lucid will continue to manage costs and improve operational efficiency.
Legal Proceedings
- Lucid is involved in several class action lawsuits alleging violations of securities laws.
- The company is also subject to other legal proceedings, claims, and litigation arising in the ordinary course of business.
Related Party Transactions
- Lucid has entered into several agreements with Ayar Third Investment Company and its affiliates, including subscription agreements, credit facilities, and supply agreements.
- The company has a significant purchase agreement with the Government of Saudi Arabia, a related party of PIF, which is an affiliate of Ayar.
Key Dates
- December 1, 2022: Date of the General Terms and Conditions between Panasonic Energy Co., Ltd. and Lucid.
- March 24, 2024: Date of the Series A Subscription Agreement with Ayar.
- August 4, 2024: Date of the Series B Subscription Agreement with Ayar.
- October 1, 2024: Effective date of the amended battery-supply agreements with Panasonic.
- October 16, 2024: Date of the 2024 Underwriting Agreement and 2024 Subscription Agreement.
- October 18, 2024: Date of completion of the public offering pursuant to the 2024 Underwriting Agreement.
- October 31, 2024: Date of consummation of the private placement of shares to Ayar pursuant to the 2024 Subscription Agreement.
Keywords
Lucid Group, electric vehicles, EV, financial results, revenue, net loss, manufacturing, supply chain, battery technology, capital raise, automotive industry
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.
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.
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.
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.
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.
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.
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.
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
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.
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.
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.
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.
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.
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 4:07 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.
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.
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.
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.