NEWARK, Calif. - Lucid Group, Inc. (NASDAQ:LCID) shares jumped 9% in premarket trading Tuesday after the electric vehicle maker reported better-than-expected revenue for the second quarter, despite a wider loss.
The luxury EV startup posted revenue of $200.6 million for Q2, surpassing analyst estimates of $186.2 million. However, Lucid's adjusted loss per share came in at $0.29, slightly worse than the $0.27 loss analysts were expecting.
Lucid delivered 2,394 vehicles in the quarter, up 70.5% from the same period last year. The company said it remains on track to produce approximately 9,000 vehicles in 2024.
"I'm very encouraged by our sales and market share momentum we're experiencing, the benefits we're realizing from our cost optimization programs, and the excitement that's been building into the Lucid Gravity launch, setting a strong foundation for the rest of the year," said Peter Rawlinson, CEO and CTO of Lucid.
The company ended Q2 with $4.28 billion in total liquidity. Lucid also announced a new $1.5 billion commitment from an affiliate of Saudi Arabia's Public Investment Fund, which it says will provide sufficient liquidity into at least Q4 2025.
Commenting on the results, Citi analysts said the report shows an "encouraging outcome with underlying gross margin better, FCF burn narrower and a new $1.5bln capital raise that’s expected to extend Lucid’s liquidity runway into Q4’25."
"We’re encouraged by Q2 progress but continue to see a balanced risk/reward when weighing Lucid’s strong EV tech position & adequate NT liquidity against past demand/branding challenges and the reliance on a successful Gravity ramp," they added, lifting the price target on the stock from $2.9 to $3.1.
Similarly, Evercore ISI analysts also voiced a cautious stance.
"Despite the stock rallying after-hours, we think Q2 was very in line w/ expectations as volumes needed for any form of a profitability story are still distant & the stock appears more positioned for a rolling takeover."
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