Lucid Motors is Doomed

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Lucid Group Inc. LCID, fell more than 11% in after-hours trading after they dropped 2022 production volume to be 6,000 vehicles or half of the 2022 expectation in May.

“Our revised production guidance reflects the extraordinary supply chain and logistics challenges we encountered,” Chief Executive Peter Rawlinson said in a statement. “We’ve identified the primary bottlenecks, and we are taking appropriate measures – bringing our logistics operations in-house, adding key hires to the executive team, and restructuring our logistics and manufacturing organization.”

Lucid reported a second-quarter loss of $555.3 million, or 33 cents a share, on revenue of $97.3 million, after a loss of $1.17 a share on no revenue a year ago.

Lucid is spending $650 for every $100 that they make.

Analysts on average were expecting a loss of 39 cents a share on sales of $145 million, according to FactSet. Lucid reported the delivery of 679 vehicles, up from 360 the quarter before, as the company continues to roll out early versions of its Lucid Air luxury sedan. Reservations for vehicles now top 37,000, up from 30,000 reported three months ago.

Lucid will spend $2 billion on a factory and is burning $1-2 billion a year in operations.

13 thoughts on “Lucid Motors is Doomed”

  2. I don’t think I am going to be commenting much anymore. The length limit is far too short. I need 2,000 characters minimum. I haven’t figured out what the limit here is, but it is something below 1,000. That is just not acceptable, as is no warning about when it is being exceeded.

  3. The time for EV startups is past. Even Tesla’s future should be questioned.

    Traditional manufacturers are producing higher quality and lower cost vehicles.

    As for autonomous operating, multiple others have fully hand’s free systems. That actually work.

    Tesla’s only technical advantage is the supercharger network. Even that is being eroded by the growing public networks.

  4. Gary Government intervention is never good, especially in a recession. Just look at Australia. They bailed out their domestic car manufacturing only for it to collapse years later.

    • I think this is green energy sector issue and not a car company issue and this isn’t propping anything up, it’s about removing temporary barriers to production.

  5. They make a niche high price car. You cannot compare with Tesla. Aston Martin makes ~6,000 vehicles a year. So they can probably survive a long time in the ultra luxury high performance segment.

    They may need to go through a bankruptcy restructuring.

    • Lucid has 5.4 billion cash on hand. They’re not going bankrupt. Their market cap of 30 billion will suffer though.

    • Exactly! In addition Tesla didn’t have as many challenges. I’ve owned a 2016 S and a 2021 S. Both failed to meet my expectations. I bought full self driving on the 16 and never got it or a refund. When I bought the 21 they asked me if I wanted it again and when I asked in October of 2020 when that would be out, they said December or at least first of the year. I sold that piece of junk in February of 2022 and never saw full self driving. My long range plus went from 404 to 380 in under 13000 miles. I ordered a lucid grand touring. I have faith in lucid.

  7. I’m thinking that the Defense Production Act should be invoked to help with EV makers supply chain issues.

    • Government intervention is never good, especially in a recession. Just look at Australia. They bailed out their domestic car manufacturing only for it to collapse years later.

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