Despite Q2 losses, Lucid has secured funding until 2025
The US electric car manufacturer Lucid Motors reports another quarterly loss of more than 700 million dollars, but sees the financing of its business secured until 2025. Meanwhile, the presentation of the electric SUV ‘Gravity’ is scheduled for November.
As per the second quarter 2023 financials now released by Lucid, the company posted revenues of $150.9 million and a net loss of $764 million (GAAP) in the second quarter of 2023. This is roughly in line with the figures from the first quarter of 2023, resulting in a net loss of $1.54 billion for the first half of 2023, about five times that of the same period in 2022, when Lucid was down just over $300 million in the first six months.
Lucid ended the second quarter of 2023 with total liquidity of around $6.25 billion, according to the financials, which the company says it expects to fund until 2025. The background is that Lucid had only raised fresh capital of around three billion US dollars in June, most of it from its main shareholder, the Saudi Arabian Public Investment Fund (PIF).
Lucid Motors reportedly produced 2,173 electric cars and delivered 1,404 electric vehicles in the second quarter. This is slightly less than in the first quarter. Nevertheless, the US electric carmaker is still on track to reach its production forecast of more than 10,000 vehicles in 2023.
Sales are expected to be further boosted by new vehicle variants, marketing measures to increase brand awareness and an adjusted pricing strategy: Lucid has just significantly lowered the US prices for the Air. In addition, production of the new top model Lucid Air Sapphire and the new base model Lucid Air Pure Rear Wheel Drive is scheduled to start in mid-September. Lucid plans to unveil its second model, the Gravity electric SUV, in November 2023 and produce it from the end of 2024, the company announced in its new quarterly report.
Lucid points to the technology partnership signed with Aston Martin at the end of June as another success of the second quarter. In the course of this, Lucid will supply drive and battery systems for future electric cars from Aston Martin and assist with integration. The contracts with Aston Martin are said to be worth more than $450 million.
“We’re on track toward achieving our 2023 production target of more than 10,000 vehicles, but we recognize we still have work to do to grow our customer base. During our second quarter, we achieved several major milestones, including signing agreements to enter into a long-term strategic partnership with Aston Martin. Following a competitive process, their investment validates our award-winning technology and marks the first partnership for Lucid Group’s technology arm,” said Peter Rawlinson, CEO and CTO of Lucid.
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