Lucid posts quarterly revenue beat as luxury EV sedan price cuts boost sales

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A Lucid showroom in New York City on Aug. 19, 2023.

Adam Jeffery | CNBC

Lucid Group reported first-quarter revenue above analysts' estimates on Monday as price cuts helped the company deliver more luxury electric sedans in the first three months of 2024.

Shares of the Newark, California-based firm fell about 3% in trading after the bell. They have fallen about 28% this year as of Monday's close, amid investor concerns of slowing demand for electric vehicles.

The company said it was on track to produce 9,000 cars this year. It made 8,428 vehicles last year and analysts, on average, expected the company to make 12,677 units in 2024.

Lucid had cut prices of its flagship Air sedans in February by as much as 10% to spur sales, as customers gravitate to less expensive gasoline-electric hybrid cars due to still-high interest rates.

The company reported first-quarter deliveries above market expectations last month thanks to lower prices, even as Elon Musk-led market leader Tesla reported its first fall in quarterly deliveries in nearly four years.

Revenue for the first quarter was $172.7 million, compared with analysts' estimate of $156.99 million, according to LSEG data.

Lucid posted a net loss of $684.76 million, narrower than a $779.5 million loss a year earlier.

Backed by Saudi Arabia's Public Investment Fund, the firm is also set to start production of a more affordable mid-size car in late 2026 to attract a larger customer base.

The sovereign wealth fund has invested billions in Lucid's success as part of a strategy to diversify the kingdom's economy beyond oil.

Its affiliate added another $1 billion to the EV maker's balance sheet, giving the company further liquidity, underscoring a key advantage Lucid has among EV startups in the race for survival.

It ended the first quarter with cash and cash equivalents of $2.17 billion, compared with $1.37 billion in the fourth quarter of last year.

The company said it expects capital expenditure of $1.5 billion this year, compared with $910.6 million in 2023.