Lucid (LCID) stock fell as the luxury electric vehicle maker announced second-quarter deliveries that beat Wall Street expectations.
For the quarter, Lucid said it delivered 1,404 vehicles, missing Wall Street’s estimate of 1,873, and produced 2,173 vehicles in the quarter. In the first quarter, Lucid shipped 1,406 cars and produced 2,314, meaning the company didn’t match its previous period’s production. In May, the California-based automaker said it was on track to produce 10,000 electric vehicles in 2023.
Lucid’s struggle to meet its expectations contrasts with rivals like Rivian and traditional automakers like GM and Ford, which have met or exceeded their electric vehicle production targets.
“THE [deliveries] The disclosure was extremely disappointing as LCID experienced a sequential decline in volumes of the 2,314 units it produced and 1,406 units it shipped in the first quarter,” CFRA analyst Garrett Nelson said in a statement. note today. “We continue to view LCID as a broken growth story and its pace of ramp-up has been particularly disappointing given its new state-of-the-art facility in Casa Grande, Arizona.”
Part of the problem is that the Lucid Air, its only electric vehicle, has a price tag that starts at around $90,000, which could hurt demand. In the first quarter, the company began offering its own version of the federal government’s $7,500 tax credit to boost sales, although that deal was removed from the company’s website.
Lucid also said it has started “hardware shipments” of its electric vehicles to the Kingdom of Saudi Arabia, where the company has reached an agreement to deliver 100,000 electric vehicles to the kingdom for government use. Last month, the Saudi private equity fund, which owns more than 60% of the company, agreed to buy an additional 265.7 million shares of Lucid worth $1.8 billion. Lucid intends to build a factory in the kingdom with a planned annual capacity of 155,000 electric vehicles per year.
It wasn’t all bad news for Lucid last quarter, as it entered into a “long-term strategic technology partnership” with British luxury carmaker Aston Martin (ARGGY) to supply components and systems to power future Aston Martin electric vehicles.
A potential revenue stream from the sale of Lucid’s intellectual property and components has been applauded by investors, with Lucid CEO Peter Rawlinson saying licensing Lucid’s technology has “appetizing potential,” and other automakers have approached the electric vehicle maker.
Finally, Lucid announced that it would release its second quarter financial results after the bell on Monday, August 7.
Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and on instagram.
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