Lucid, the embattled EV maker, reported its second-quarter earnings which disappointed Wall Street. However, despite missing expectations, the results still managed to lift the company's stock during after-hours trading on Monday.
Falling Short on Earnings
Lucid recorded a per-share loss of 40 cents from sales totaling approximately $151 million for the second quarter. Analysts were hoping for a per-share loss of 34 cents with sales reaching $182 million.
Impact on Stock Performance
Following the earnings announcement, Lucid's stock initially dropped by 3.2% during regular trading hours but then rebounded to a 3.9% increase in after-hours trading. Meanwhile, the S&P 500 and Nasdaq Composite experienced gains of 0.9% and 0.6% respectively. The share price cuts recently announced by Lucid have contributed to the fluctuation in stock performance.
In addition to the earnings report, Lucid also provided an important update regarding its production plans. The company remains on track to manufacture over 10,000 units, which aligns with the guidance given in May. However, earlier this year, Wall Street had higher expectations, anticipating closer to 20,000 units of production.
The downward adjustment in projected production has affected Lucid's stock performance negatively. Year to date, shares have declined by around 6%, and over the past 12 months, they have dropped by about 64%.
Lucid's financials indicate that it ended the quarter with more than $5 billion in cash reserves. The company spent approximately $900 million to support its operations during the second quarter. Analysts estimate that Lucid will continue to utilize roughly $1 billion per quarter, and positive free cash flow is not expected until later in the decade, relying heavily on increasing sales.
Sales vs. Production
During the first half of 2023, Lucid sold a total of 2,810 vehicles. However, its production figures reached 4,487 units, resulting in approximately 5,500 cars remaining to meet the company's guidance. The difference between sales and production is a concerning trend for any automobile manufacturer.