Lucid Group completed its first quarter as a public company with a rapidly rising stock price and customer deliveries as it seeks to top the rapidly growing luxury EV market.
The company has come a long way since its inception in 2007 as Ativa. After shifting its focus from EV battery and powertrain manufacturing to producing a line of luxury vehicles, the company went public in July following a merger with Churchill Capital IV Corp. The most anticipated EV SPAC deals of the year.
Shares of the new EV entrant have nearly doubled over the past calendar month, rising from about $27 per share on October 27 to $44.88 at market close on Monday. The surge is expected as the company begins more than two dozen customer deliveries of the $169,000 Air Dream Edition sedan in late October. Just a few weeks ago, the automaker announced that this version had the longest EPA-certified range of any EV on the market, at over 520 miles, while the Lucid Grand Touring received a rating of 516 miles.
Overall, customer reservations increased to 13,000 in the third quarter, reflecting revenue of approximately $1.3 billion, the company said. Since the close of the quarter, reservations have risen again to over 17,000; This is over 11,000 reservations in July. Lucid Group CEO Peter Rawlinson told investors on Monday that reservations are largely being made by people in the US, with Saudi Arabia second by order of reservations. The company has received substantial financial investment from Saudi Arabia’s Sovereign Wealth Fund, and the fund remains the automaker’s largest shareholder.
Rollinson said in a statement that he is confident the company will reach a production capacity of 20,000 vehicles next year. Lucid’s long-term goal is a bit more ambitious: 500,000 units by the end of the decade. But first, the company aims to offer customers the 520 Dream Edition in an initial roll-out, followed by the Grand Touring, Touring and Air Pure (the base model, which starts at around $77,000) next year.
The vehicles are manufactured at Lucid’s manufacturing facility in Casa Grande, Arizona, with plans to expand to approximately 2.85 million square feet. Rollinson said the aim is to eventually build 90,000 vehicles per year by the end of 2023, including the mysterious “Project Gravity” SUV, and 365,000 units in total.
Gravity is on track for production in late 2023, officials confirmed in an investor call. Rollinson didn’t add too many details on the SUV, other than swearing that it would be “as disruptive in the SUV space as the Air is in its space.”
Turning to the financials, the company is closing the quarter with approximately $4.8 billion in cash, which includes $4.4 billion from the SPAC merger and PIPE, as well as cash on the balance sheet at the time of closing of the deal. CFO Sherry House specified that while the cost of production is reflected in this quarter’s earnings, vehicle revenue will not be reflected in the financial statements until next quarter because customer deliveries began on October 30.
Also on Monday, the Lucid Air was named MotorTrend’s 2022 Car of the Year. “For a new brand and a new company to win, to my knowledge, it’s only been once before. I should know, I was there,” Rawlinson said of Tesla’s win for the Model S in 2012 Said while doing Rollinson previously worked as a Model S vehicle engineer after joining the company in 2009.