Lucid (US:LCID)2024-08-05 20:10Revenue and Financial Performance - Revenue for the three months ended June 30, 2024, was $200,581 thousand, representing a 33% increase compared to $150,874 thousand for the same period in 2023[171]. - Revenue for the six months ended June 30, 2024, was $373,321 thousand, reflecting a 24% increase from $300,306 thousand in the same period last year[172]. - Total other income (expense), net increased by $69.9 million, or 94%, for the six months ended June 30, 2024, compared to the same period in the prior year[185]. - Interest income increased by $15.0 million, or 38%, for the three months ended June 30, 2024, compared to the same period in the prior year[192]. - As of June 30, 2024, the company had an accumulated deficit of $11.5 billion, reflecting significant losses from operations[218]. Cost Management - Cost of revenue decreased by $85,450 thousand or 15% for the three months ended June 30, 2024, compared to $555,805 thousand in the prior year[173]. - Selling, general, and administrative expense increased by $12.5 million, or 6%, for the three months ended June 30, 2024, compared to the same period in the prior year[181]. - Research and development expenses increased by $53,696 thousand or 23% for the three months ended June 30, 2024, compared to $233,474 thousand in the same period last year[176]. - Research and development expense increased by $108.5 million, or 23%, for the six months ended June 30, 2024, compared to the same period in the prior year[179]. Cash Flow and Liquidity - As of June 30, 2024, the company had $3.9 billion of cash, cash equivalents, and investments[195]. - Net cash used in operating activities decreased by $477.9 million to $1,023.7 million during the six months ended June 30, 2024, compared to the same period in the prior year[222]. - Net cash provided by investing activities was $6.3 million during the six months ended June 30, 2024, compared to $466.7 million of net cash used in investing activities for the same period in the prior year[223]. - Net cash provided by financing activities decreased by $2,008.3 million to $999.6 million during the six months ended June 30, 2024, compared to the same period in the prior year[224]. - The company had cash, cash equivalents, restricted cash, and investments totaling $3.9 billion as of June 30, 2024[243]. Inventory and Restructuring - The company recorded inventory write-downs of $154,200 thousand for the three months ended June 30, 2024, a decrease from $295,000 thousand in the same period last year[175]. - The company expects to record total restructuring charges of approximately $21 million to $25 million related to the 2024 Restructuring Plan[183]. Future Plans and Developments - The company expects to launch the Lucid Gravity SUV in late 2024 and the Midsize platform in late 2026, expanding its vehicle lineup[159]. - The company anticipates continued consumer demand for the Lucid Air due to its luxurious design and high-performance technology[165]. - The company anticipates cumulative capital expenditures of approximately $1.3 billion for the fiscal year 2024 to support growth objectives[196]. - The company selected King Abdullah Economic City in Saudi Arabia for its first international manufacturing plant, initially focusing on re-assembly of Lucid Air vehicle kits[199]. Financing and Debt - The Series B Subscription Agreement with Ayar will provide the company with $750 million in gross proceeds, enhancing its financial position[160]. - The company issued $2,012.5 million of the 2026 Notes with an interest rate of 1.25% per annum, maturing on December 15, 2026[198]. - The ABL Credit Facility provides for an initial aggregate principal commitment amount of up to $1.0 billion, with a stated maturity date of June 9, 2027[211]. - The DDTL Credit Facility provides for a delayed draw term loan credit facility in an aggregate principal amount of $750 million, maturing on August 4, 2029[214]. - The company had outstanding borrowings of SAR 256 million (approximately $68.2 million) under the GIB Credit Facility as of June 30, 2024[210]. Market and Economic Conditions - Inflationary pressures have impacted manufacturing costs, with potential increases in capital expenditures as construction progresses on AMP-1 and AMP-2 facilities[169]. - A hypothetical 100 basis point increase in interest rates would result in a $15.1 million incremental decline in the fair market value of the company's portfolio[243]. - The fair value of equity securities held by the company was $51.5 million as of June 30, 2024, with a hypothetical 10% decrease in stock price potentially decreasing the fair value by $5.2 million[244]. - The company is dependent on single-source suppliers, which could materially affect its operations if delivery schedules or quality levels are not met[246].