Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Lucid Group Inc (NASDAQ:LCID) raised approximately $1.75 billion through a public offering, providing financial runway into 2026.

• The company achieved record deliveries in Q3 2024, with 2,781 vehicles delivered, marking a 91% year-over-year increase.

• Lucid Group Inc (NASDAQ:LCID) has seen growing brand awareness, reaching an all-time high in the third quarter.

• The company is on track to produce approximately 9,000 vehicles for the full year 2024.

• Lucid Group Inc (NASDAQ:LCID) earned the highest possible overall safety rating of five stars from the National Highway Traffic Safety Administration.

Negative Points

• Average selling price was down sequentially, primarily due to product mix.

• The company reported a GAAP net loss per share of $0.41 in Q3 2024.

• Lucid Group Inc (NASDAQ:LCID) faced a non-cash loss of approximately $240 million due to an increase in the fair value of derivative liabilities.

• The company is not yet guiding production and delivery numbers for 2025, indicating uncertainty in future projections.

• Lucid Group Inc (NASDAQ:LCID) continues to face challenges in achieving positive gross margins, although improvements have been noted.

Q & A Highlights

• Warning! GuruFocus has detected 5 Warning Signs with LCID.

Q: With the share price near all-time lows, what do you have to say to early investors, and what are your plans to improve the share price? A: Peter Rollinson, CEO, emphasized the company's commitment to long-term shareholder value despite challenging market conditions. He highlighted Lucid's strategic initiatives, including the launch of the Lucid Gravity SUV and the development of a high-volume midsize platform, as key drivers for future growth and shareholder value.

Q: Do you plan to offer a more affordable vehicle, and if so, what is the timeline? A: Peter Rollinson, CEO, confirmed plans for a midsize vehicle with production starting in late 2026. This vehicle aims to address a market significantly larger than Lucid's current offerings, with a target price range of $40,000 to $50,000.

Q: What are the chances of the Saudis buying out Lucid completely, and what would this mean for investors? A: Peter Rollinson, CEO, stated that it would be inappropriate to speak on behalf of the Public Investment Fund (PIF). However, he emphasized the strong partnership with PIF and their shared commitment to Lucid's long-term strategic goals.

Q: Can you reach positive margins individually on the Air and Gravity models, and what sales volume is needed to achieve this? A: Peter Rollinson, CEO, expressed confidence in achieving positive margins for both models. He noted that improvements in gross margin are already underway and that achieving scale will be crucial for covering fixed costs.