LCID
Lucid Group, INC
NASDAQ
10-Q: Lucid Group Reports Second Quarter 2024 Results, Net Loss of $643.4 Million
Sentiment:
Quarterly Report
5 August 2024 4:10 PM
Lucid Group's second quarter 2024 results reveal a net loss of $643.4 million, despite a revenue increase to $200.6 million.
Worse than expected
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
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.
Summary
- Lucid Group reported a net loss of $643.4 million for the three months ended June 30, 2024, and a net loss of $1.324 billion for the six months ended June 30, 2024.
- Revenue for the quarter reached $200.6 million, up from $150.9 million in the same period last year, and $373.3 million for the six months ended June 30, 2024, up from $300.3 million in the same period last year.
- The company's cost of revenue was $470.4 million for the quarter and $875.2 million for the six months ended June 30, 2024.
- Research and development expenses totaled $287.2 million for the quarter and $571.8 million for the six months ended June 30, 2024.
- Selling, general and administrative expenses were $210.2 million for the quarter and $423.5 million for the six months ended June 30, 2024.
- Restructuring charges amounted to $20.2 million for the quarter and $20.2 million for the six months ended June 30, 2024.
- The company had an accumulated deficit of $11.5 billion as of June 30, 2024.
- 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.
Sentiment
Score: 4
Explanation: The document presents a mixed picture with increased revenue but significant losses and ongoing financial risks. The need for further capital raises and the potential impact of economic downturns contribute to a negative sentiment.
Positives
- Revenue increased by 33% in Q2 2024 compared to the same period last year, driven by higher vehicle deliveries and regulatory credit sales.
- Cost of revenue decreased by 15% in Q2 2024 compared to the same period last year, primarily due to decreases in inventory write-downs and losses from firm purchase commitments.
- Interest income increased by 38% in Q2 2024 compared to the same period last year, due to higher average balances and higher book yield from cash on hand and investments.
Negatives
- The company reported a net loss of $643.4 million for Q2 2024 and $1.324 billion for the six months ended June 30, 2024.
- Lucid recorded write-downs of $154.2 million for the three months ended June 30, 2024, to reduce inventories to net realizable values and for excess or obsolete inventories.
- The company has an accumulated deficit of $11.5 billion as of June 30, 2024.
Risks
- The company faces risks associated with a global economic recession, which may cause customers to defer purchases or cancel orders.
- Lucid is dependent on its suppliers, many of which are single-source, and any inability of these suppliers to deliver components could have a material adverse effect.
- The company is subject to risks associated with the expansion of its manufacturing facility, the construction of new facilities and the increase of its production capacity.
- Lucid is subject to risks related to potential vehicle recalls.
- The company is subject to risks related to its ability to conduct equity, equity-linked, or debt financing in the future.
Future Outlook
The company plans for continued development of additional vehicle model types for future release and expects to launch the Lucid Gravity SUV in late 2024 and the Midsize platform in late 2026.
Management Comments
- The company continues to expand AMP-1, construct the completely-built-up (CBU) portion of AMP-2, and build a network of retail sales and service locations.
- The aforementioned activities will require considerable capital, which is above and beyond the expected cash inflows from the initial sales of the Lucid Air.
- The future operating plan involves considerable risk if secure funding sources are not identified and confirmed.
Industry Context
The document highlights the challenges faced by a relatively new electric vehicle manufacturer in a competitive market, including the need for significant capital investment, supply chain management, and the impact of economic conditions on consumer demand.
Comparison to Industry Standards
- Lucid's financial results are compared to those of other electric vehicle and traditional automotive industry competitors, noting that Lucid's premium brand positioning and pricing may make it more vulnerable to economic downturns.
- The document notes that many competitors have greater financial, technical, manufacturing, marketing and other resources than Lucid.
- The document also notes that some competitors have recently announced vehicle price reductions, which may result in downward price pressure and reduced demand for Lucid vehicles.
Stakeholder Impact
- Shareholders face the risk of further dilution due to potential capital raises and the conversion of preferred stock.
- Employees may be affected by restructuring plans and workforce reductions.
- Customers may experience delays in vehicle deliveries and may be impacted by any potential vehicle recalls.
- Suppliers face the risk of potential insolvency or inability to meet Lucid's demand.
- Creditors face the risk of potential default on debt obligations.
Next Steps
- The company plans to continue expanding AMP-1 and constructing the CBU portion of AMP-2.
- Lucid intends to continue building a network of retail sales and service locations.
- The company plans for continued development of additional vehicle model types for future release.
- Lucid expects to launch the Lucid Gravity SUV in late 2024 and the Midsize platform in late 2026.
Legal Proceedings
- The company is involved in several legal proceedings, including securities class action lawsuits and shareholder derivative actions, relating to alleged false or misleading statements regarding the company's expected start of production and delivery and revenue projections.
- Lucid is also involved in a lawsuit filed by the Illinois Automobile Dealers Association regarding the legality of manufacturers obtaining licenses as motor vehicle dealers.
Related Party Transactions
- The company has entered into several transactions with Ayar, an affiliate of PIF, including the issuance of preferred stock, a term loan credit facility, and a subscription agreement.
- Lucid has a loan agreement with the Saudi Industrial Development Fund (SIDF), a related party of PIF.
- Lucid has agreements with the Ministry of Investment of Saudi Arabia (MISA), a related party of PIF, for economic support for capital expenditures.
- Lucid has a revolving credit facility agreement with Gulf International Bank (GIB), a related party of PIF.
- Lucid has a construction service contract with Al Bawani Company Limited, an affiliate of PIF.
- Lucid has a joint cooperation agreement with the Human Resources Development Fund (HRDF), a related party of PIF.
- Lucid has an EV Purchase Agreement with the Government of Saudi Arabia, a related party of PIF.
- Lucid has an Implementation Agreement with Aston Martin, a related party of PIF.
Key Dates
- December 31, 2023: Date of the end of the previous fiscal year.
- June 30, 2024: End of the second quarter of 2024.
- July 30, 2024: Number of shares of the registrants common stock outstanding at this date: 2,318,876,700
- August 4, 2024: Date of the $750 million five-year unsecured delayed draw term loan credit facility with Ayar and the subscription agreement with Ayar for the purchase of 75,000 shares of Series B convertible preferred stock for $750 million.
Keywords
electric vehicles, EV, Lucid Air, manufacturing, financial results, preferred stock, capital raise, Saudi Arabia, Ayar, debt financing
LCID
Lucid Group, INC
NASDAQ
Sector: TBD
Filings with Classifications
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
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.
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.
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.
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 4:10 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 4:08 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.
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 4:14 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 4:06 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
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).
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.
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
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.
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.
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.