Lucid (NASDAQ:LCID) stock is in the green after the pure-play electric vehicle (EV) company reported its delivery and production metrics for the first quarter.
Deliveries tallied in at 1,967 vehicles, marking year-over-year (YOY) growth of 40% and quarter-over-quarter growth of 13%. Deliveries also beat the average analyst estimate for 1,745 vehicles. Analysts expect Lucid to deliver 9,000 vehicles this year, meaning that deliveries must ramp up in later quarters. Lucid delivered 6,001 vehicles last year.
During Q1, Lucid produced 1,728 vehicles, falling short of the average analyst estimate for 2,123 vehicles and down compared to 2,391 vehicles during the prior quarter. The company has guided for the production of 9,000 vehicles this year compared to 2023 production of 8,428 vehicles.
Profitability and cash burn remain a major issue for Lucid. However, the company has major backing from Saudi Arabia’s Public Investment Fund (PIF). Last month, PIF affiliate Ayar Third Investment Company agreed to provide Lucid with $1 billion in exchange for newly created convertible preferred stock.
Lucid Motors Beat Q1 Delivery Updates. How Close Is It to Profitability?
With the support of PIF, cash burn concerns can be slightly alleviated. In 2023, the company used $2.49 billion of cash for operating activities and $946.98 million in investing activities compared to its Dec. 31 cash and cash equivalents of $1.37 billion.
Profitability is another story. Lucid’s 2023 net loss tallied in at $2.83 billion compared to $1.30 billion in 2022 and $2.58 billion in 2021. 2023’s net loss accelerated from the prior year due to lower revenue, an uptick in research and development expenses and a restructuring charge.
Lucid will report its Q1 earnings on May 6 after the market close. Analysts aren’t forecasting profitability any time soon and believe that the company will report a GAAP EPS loss of 25 cents compared to a loss of 43 cents a year ago. Revenue is expected to grow by 4% to $155 million.
At the same time, analysts expect Lucid to report its first profitable year in 2030 with a GAAP EPS of 6 cents. It should be noted that forecasts several years out in the future are subject to significant changes.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
