Tue, May 6, 8:12 PM (6 days ago)
Lucid Group, Inc. (LCID) reported a net loss of $366.2 million for the quarter ending March 31, 2025, compared to a net loss of $680.9 million for the same period in 2024. Revenue increased by $62.3 million or 36% to $235.0 million, driven by higher regulatory credit sales and increased delivery volume of Lucid Air vehicles. Cost of revenue increased by $58.8 million or 15% to $463.6 million, primarily due to higher delivery volume and inventory write-downs. Gross margin improved to (97.2)% from (134.3)%, driven by increased regulatory credit sales and continuous gross margin improvement efforts. Operating expenses decreased by $34.4 million or 7% to $463.4 million, with research and development expenses decreasing by $33.4 million or 12% due to reduced engineering and prototype materials costs. Selling, general, and administrative expenses remained relatively flat. Other income (expense), net increased by $275.2 million to $324.4 million, primarily due to a gain of $281.7 million in change in fair value of derivative liabilities associated with redeemable convertible preferred stock. Cash used in operating activities decreased by $88.1 million to $428.6 million, primarily due to an improvement in net loss excluding non-cash expenses and gains. Cash provided by investing activities increased by $296.5 million to $614.0 million, due to higher investment maturities compared to investment purchases. Cash provided by financing activities decreased by $934.5 million to $62.7 million, as the company received gross proceeds of $1.0 billion from the issuance of Series A Redeemable Convertible Preferred Stock in the prior year. The company's total minimum lease payments are $486.0 million, with $57.3 million due in fiscal year 2025. The company has non-cancellable long-term commitments of approximately $2.6 billion, primarily relating to certain inventory component purchases. The company's liquidity includes cash, cash equivalents, investments, and credit facilities, with significant commitments for capital expenditures and growth initiatives. The company's future capital expenditures may vary and depend on many factors, including the timing and extent of spending and other growth initiatives. The company's operating expenses are expected to increase to support the growth of a global technology automotive company targeting volumes in line with Lucid's aspirations. The company's future operating plan involves considerable risk if secure funding sources are not identified and confirmed. The company's existing sources of liquidity include cash, cash equivalents, investments, and credit facilities. The company funded operations primarily with issuances of common stock, convertible preferred stock, and convertible notes. The company expects that its current sources of liquidity together with its projection of cash flows from operating activities will provide it with adequate liquidity for at least the next 12 months, including investment in funding ongoing operations, research and development projects, further construction of AMP-1 phase 2 in Casa Grande, Arizona, construction of the CBU portion of AMP-2 in Saudi Arabia, vendor tooling, expansion of retail studios and service centers, and other initiatives related to the sale of vehicles and/or technology. The company anticipates its cumulative spending on capital expenditures to be approximately $1.4 billion for the fiscal year 2025 to support its continued commercialization and growth objectives as it strategically invests in manufacturing capacity and capabilities, its retail studios and service center capabilities throughout North America and across the globe, development of different products and technologies, and other areas supporting the growth of Lucid’s business. The company expects to continue to receive financing and support for certain capital expenditures in connection with AMP-2 construction and purchases of machinery, tooling, and equipment. The company's future capital expenditures may vary and will depend on many factors including the timing and extent of spending and other growth initiatives. In addition, the company expects its operating expenses to increase in order to grow and support the operations of a global technology automotive company targeting volumes in line with Lucid’s aspirations. As of March 31, 2025, the company's total minimum lease payments are $486.0 million, of which $57.3 million is due in fiscal year 2025. The company also has non-cancellable long-term commitments of approximately $2.6 billion, primarily relating to certain inventory component purchases. The company's liquidity includes cash, cash equivalents, investments, and credit facilities, with significant commitments for capital expenditures and growth initiatives. The company's future capital expenditures may vary and depend on many factors, including the timing and extent of spending and other growth initiatives. The company's operating expenses are expected to increase to support the growth of a global technology automotive company targeting volumes in line with Lucid's aspirations. The company's future operating plan involves considerable risk if secure funding sources are not identified and confirmed. The company's existing sources of liquidity include cash, cash equivalents, investments, and credit facilities. The company funded operations primarily with issuances of common stock, convertible preferred stock, and convertible notes. The company expects that its current sources of liquidity together with its projection of cash flows from operating activities will provide it with adequate liquidity for at least the next 12 months, including investment in funding ongoing operations, research and development projects, further construction of AMP-1 phase 2 in Casa Grande, Arizona, construction of the CBU portion of AMP-2 in Saudi Arabia, vendor tooling, expansion of retail studios and service centers, and other initiatives related to the sale of vehicles and/or technology. The company anticipates its cumulative spending on capital expenditures to be approximately $1.4 billion for the fiscal year 2025 to support its continued commercialization and growth objectives as it strategically invests in manufacturing capacity and capabilities, its retail studios and service center capabilities throughout North America and across the globe, development of different products and technologies, and other areas supporting the growth of Lucid’s business. The company expects to continue to receive financing and support for certain capital expenditures in connection with AMP-2 construction and purchases of machinery, tooling, and equipment. The company's future capital expenditures may vary and will depend on many factors including the timing and extent of spending and other growth initiatives. In addition, the company expects its operating expenses to increase in order to grow and support the operations of a global technology automotive company targeting volumes in line with Lucid’s aspirations.