Lucid Motors recently unveiled its Q3 2023 earnings, signaling ongoing challenges as the company faces financial headwinds. Notably, the results failed to meet market expectations, adding to a series of setbacks throughout the year. The electric vehicle manufacturer also announced a second downward revision to its 2023 production targets.
In the financial arena, Lucid's Q3 revenue came in at $137.8 million, falling significantly short of Wall Street's projected figure of $183.8 million. This figure marked a 29.5% decline from the revenue Lucid reported during the same quarter the previous year. On a more positive note, the company's loss per share of 28 cents was better than the expected loss of 36 cents.
The lower-than-expected revenue led to a net loss of $631 million in the quarter, representing a 19% increase from the $530 million loss reported in the same quarter in the previous year. Despite these financial challenges, Lucid disclosed that it concluded the third quarter with approximately $5.45 billion in liquidity, providing it with the necessary resources to continue operations through 2025.
In response to the current market conditions and production challenges, Lucid decided to reduce its 2023 production guidance for the second time this year. Initially targeting production of up to 14,000 vehicles, the company now anticipates manufacturing between 8,000 and 8,500 vehicles in 2023 to “prudently align with deliveries.” Up until Q3, Lucid had produced 6,037 Air sedans, but only managed to sell 4,267 of them.
Despite these hurdles, Lucid pointed to significant achievements, including the successful launch of the Lucid Air Pure RWD and the ramp-up of Air Sapphire production. The company also revealed plans to debut its luxury electric SUV, the Lucid Gravity, at the LA Auto Show later this month.
Peter Rawlinson, Lucid's CEO & CTO, commented on the situation, stating, “We delivered on our commitments to complete the Lucid Air lineup on time with Pure RWD and Sapphire, transition general assembly to our Phase 2 factory in Arizona, and open our first plant in Saudi Arabia. We recognize we still have work to do on our customer journey and deliveries. Next week, we look forward to the world premiere of the Lucid Gravity, our amazing vehicle that will redefine the electric SUV. Gravity remains on track to begin production in late 2024.”