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Lucid has revised its 2023 manufacturing outlook amid softening demand for luxurious electrical autos, the corporate mentioned Tuesday in its third-quarter earnings report.
The EV maker mentioned it’ll produce 8,000 to eight,500 autos by the top of the 12 months, down from earlier steering of greater than 10,000, to “prudently align with deliveries.”
Within the third quarter, Lucid delivered 1,457 of its luxurious electrical Air sedans, lacking Wall Avenue expectations by about 500 autos. 12 months-over-year and quarter-over-quarter, Lucid’s supply numbers had been kind of flat.
The revised manufacturing steering and weak supply numbers come as shoppers are unwilling to spend huge on EVs, preferring as a substitute to go for extra budget-friendly hybrids. To maintain up demand, corporations all over the world have been searching for methods to supply EVs at a lower cost level. Tesla has been constantly slashing its costs throughout the board to spice up gross sales. And automakers like Ford and Rivian are working to return to market with cheaper fashions.
In August, Lucid began chopping costs throughout the total Air lineup. Final week, the EV maker doubled down, slashing the worth of its Air Touring mannequin to $87,500, down from $95,000, and the Grand Touring by $10,000 to $115,600. The all-wheel drive Air Pure can be now at $74,900, down from $82,400.
Whereas cheaper, these vehicles are nonetheless costly, and Lucid is about to disclose one other luxurious EV mannequin that can doubtless be simply as expensive.
Lucid’s Gravity SUV is ready to be unveiled subsequent week. The corporate mentioned manufacturing remains to be scheduled to start in late 2024. Pricing has not but been revealed for that automotive, however it’s anticipated to return in at round $100,000.
Lucid missed Wall Avenue estimates
Lucid reported $137.8 million within the third quarter, lacking Wall Avenue estimates of $192.72 million by an extended shot, in keeping with Yahoo Finance information. That income is down about 30% from the identical interval in 2022, when Lucid reported earnings of $195.5 million.
A few of that may be attributed to restructuring fees. In March, Lucid laid off 18% of employees, or about 1,300 workers, to cut back prices on the firm. Lucid mentioned its restructuring effort would additionally result in different value cuts, however the automaker’s spend on promoting, normal and administrative bills has grown year-over-year.
Lucid closed the quarter with a web lack of $630.8 million. The automaker nonetheless has $1.16 billion in money and money equivalents and a complete $5.45 billion in liquidity, which Sherry Home, Lucid’s CFO, says will get the Gravity to manufacturing and assist the corporate keep afloat into 2025.
“We’ve additionally made progress with the fee management program we carried out within the first half of the 12 months and have recognized additional alternatives for 2024,” mentioned Home in a press release.
Whereas Lucid’s liquidity place could also be sturdy for the second, the automaker nonetheless closed out the quarter with detrimental free money movement of –$706 million, a stark signal that Lucid isn’t bringing in sufficient money to cowl its excessive prices.
Lucid’s inventory fell nearly 7% in after-hours buying and selling Tuesday.
This story is growing. Verify again in for updates.
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