Lucid (US:LCID)2024-11-07 21:10Revenue and Growth - Revenue for the three months ended September 30, 2024, was $200.0 million, a 45% increase from $137.8 million in the same period last year, driven by higher deliveries of the Lucid Air vehicles [204][205]. - The company expects to launch the Lucid Gravity SUV in late 2024 and the Midsize platform in late 2026, leveraging advancements from the Lucid Air [193]. - The company anticipates significant risks and uncertainties related to the development and commercial launch of vehicles, manufacturing capacity increases, and international expansion [264]. Expenses and Costs - Cost of revenue decreased by $57.2 million or 12% for the three months ended September 30, 2024, primarily due to decreases in inventory write-downs and losses from firm purchase commitments [206][208]. - Research and development expenses for the three months ended September 30, 2024, were $324.4 million, a 41% increase from $230.8 million in the same period last year, reflecting ongoing investments in technology and product development [211][212]. - Selling, general, and administrative expense increased by $43.9 million, or 23%, for the three months ended September 30, 2024, compared to the same period in the prior year [216]. - The company is experiencing increased inflation affecting vehicle manufacturing costs, influenced by key components, labor, and equipment costs [296]. - Ongoing construction of AMP-1 and AMP-2 facilities may lead to higher capital expenditures due to rising material and labor costs [296]. Financial Position and Liquidity - The company had approximately $4.0 billion of cash, cash equivalents, and investments as of September 30, 2024 [236]. - The company expects adequate liquidity for at least the next 12 months to fund ongoing operations and research and development projects [237]. - The company reported an accumulated deficit of $12.5 billion, up from $10.2 billion as of December 31, 2023 [263]. - Cash used in operating activities decreased by $528.7 million to $1,486.5 million during the nine months ended September 30, 2024, compared to the same period in the prior year [268]. - Net cash provided by investing activities was $290.0 million during the nine months ended September 30, 2024, a significant improvement from $1,599.1 million used in the same period in the prior year [270]. - Net cash provided by financing activities decreased by $1,324.2 million to $1,718.7 million during the nine months ended September 30, 2024, compared to the same period in the prior year [272]. Inventory and Receivables - The company recorded inventory write-downs of $154.9 million for the three months ended September 30, 2024, compared to $230.8 million in the same period last year, indicating improved inventory management [209]. - The company experienced a decrease in inventory of $354.5 million due to lower purchases of raw materials and improved inventory management [268]. - Accounts receivable increased to $98.2 million as of September 30, 2024, compared to $51.8 million as of December 31, 2023, primarily due to higher vehicle sales [268]. Financing Activities - The company completed a public offering on October 18, 2024, raising approximately $719.0 million from the sale of 262.4 million shares [194]. - A private placement with Ayar Third Investment Company raised approximately $1,026.5 million, reflecting strong support from the controlling stockholder [195]. - The company issued $2,012.5 million of 2026 Notes with a 1.25% annual interest rate, maturing on December 15, 2026 [240]. - 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 [253]. - As of September 30, 2024, the company had outstanding borrowings of SAR 175 million (approximately $46.6 million) under the GIB Credit Facility [252]. Economic and Market Conditions - The company acknowledges potential adverse impacts from economic downturns, which may affect consumer demand for luxury electric vehicles [197]. - The company anticipates that inflationary pressures may lead to increased manufacturing costs, impacting future capital expenditures [203]. - A hypothetical 100 basis point increase in interest rates would result in a $13.6 million incremental decline in the fair market value of the company's investment portfolio [294]. - A hypothetical 10% decrease in the stock price of equity securities would decrease their fair value by $4.6 million [295]. Manufacturing and Expansion - As of September 30, 2024, the company has opened 55 studios and service centers globally, with plans for further expansion to enhance customer experience [200]. - The company selected King Abdullah Economic City in Saudi Arabia for its first international manufacturing plant, initially focusing on re-assembly of vehicle kits [241]. - Lucid LLC entered into a loan agreement with the Saudi Industrial Development Fund for up to SAR 5.19 billion (approximately $1.4 billion) to finance development and construction of AMP-2 [242]. - The company received SAR 366 million (approximately $97.5 million) in cash support from the Ministry of Investment of Saudi Arabia during the year ended December 31, 2023 [248]. Other Financial Metrics - Interest income decreased by $16.0 million, or 24%, for the three months ended September 30, 2024, compared to the same period in the prior year [229]. - Interest expense increased by $5.1 million, or 154%, for the three months ended September 30, 2024, compared to the same period in the prior year [232]. - The change in fair value of common stock warrant liability resulted in a loss of $13.7 million for the three months ended September 30, 2024 [223]. - The derivative liabilities of the Series A and Series B Redeemable Convertible Preferred Stock were remeasured to a fair value of $932.0 million as of September 30, 2024 [228]. - The company recorded unrealized losses of $8.8 million for the change in fair value of equity securities of a related party for the three months ended September 30, 2024 [224]. - The fair value of equity securities held by the company was $45.7 million as of September 30, 2024 [295].