Shares of Lucid (LCID) fell after the luxury electric car maker said second-quarter deliveries fell short of Wall Street expectations.
Lucid said it produced 2,173 vehicles in the quarter, delivering 1,404 vehicles in the quarter, below Wall Street’s forecast of 1,873. In the first quarter, Lucid delivered 1,406 cars and produced 2,314. This means that the company’s production volume did not reach the production volume of the previous period. The California-based automaker announced in May that it plans to produce 10,000 EVs in 2023.
Lucid’s struggle to meet expectations contrasts with rivals like Rivian and legacy automakers like GM and Ford, which are meeting or exceeding their EV production targets.
” [deliveries] This disclosure is highly disappointing as LCID’s production continued to fall from 2,314 units produced and 1,406 deliveries in the first quarter,” CFRA analyst Garrett Nelson wrote in a note today. there is That rate of increase is especially disappointing considering the new state-of-the-art factory in Casa Grande, Arizona. ”
Part of the problem is that the Lucid Air, the company’s only EV, starts at around $90,000, which could hurt demand. The company began offering its own version of the federal tax credit of $7,500 in the first quarter to boost sales, but the deal has been removed from its website.
Lucid also said it has started a “goods shipment” of EVs to the Kingdom of Saudi Arabia, where the company has a contract to deliver 100,000 EVs to the Kingdom for government use. Saudi Arabia’s Private Investment Fund, which owns more than 60% of the company, agreed last month to buy an additional 265.7 million shares worth $1.8 billion in Lucid. Lucid plans to build a factory in the Kingdom with a projected capacity of 155,000 EVs per year.
But the last quarter wasn’t all negative news for Lucid. The company has 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 EVs.
The potential revenue stream from the sale of Lucid’s IP and components has been welcomed by investors, with Lucid CEO Peter Rawlinson saying licensing Lucid’s technology “could be drooling.” ” and said other car companies are also approaching EV makers.
Lucid announced that it will report second quarter results after the bell on Monday, August 7th.
Pras Subramanian is a reporter at Yahoo Finance.you can follow him twitter and further Instagram.
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