Lucid (US:LCID)2025-08-05 20:15Revenue and Production - Revenue for the three months ended June 30, 2025, was $259.4 million, a 29% increase from $200.6 million in the same period of 2024, while revenue for the six months ended June 30, 2025, was $494.5 million, up 32% from $373.3 million in 2024[228][229]. - Vehicle production for the three months ended June 30, 2025, totaled 3,863 units, with 3,309 vehicles delivered, while for the six months ended June 30, 2025, production was 6,075 units and deliveries were 6,418 units[210]. - The company anticipates continued consumer demand for the Lucid Air and Lucid Gravity, driven by their performance, design, and the growing acceptance of EVs[224]. Financial Performance - Cost of revenue for the three months ended June 30, 2025, was $531.8 million, a 13% increase from $470.4 million in 2024, resulting in a gross loss of $272.4 million[230]. - The gross margin for the three months ended June 30, 2025, was -105.0%, compared to -134.5% in the same period of 2024[230]. - Gross margin improved to (105.0)% for the three months ended June 30, 2025, compared to (134.5)% for the same period in the prior year, driven by vehicle cost efficiency and regulatory credit sales[237]. - Other income increased by $117.3 million, or 81%, for the three months ended June 30, 2025, driven by gains on extinguishment of debt and changes in fair value of derivative liabilities[246]. - The company recorded a gain of $116.4 million on extinguishment of debt during the three months ended June 30, 2025[254]. Expenses - Research and development expenses decreased by $13.3 million, or 5%, for the three months ended June 30, 2025, mainly due to a reduction in engineering and testing services[240]. - Selling, general, and administrative expenses increased by $46.6 million, or 22%, for the three months ended June 30, 2025, primarily due to higher payroll and contractor costs[243]. - Total operating expenses increased by $13.1 million, or 3%, for the three months ended June 30, 2025, compared to the prior year[238]. - Inventory write-downs were $184.7 million for the three months ended June 30, 2025, reflecting higher inventory and firm purchase commitments[235]. Cash Flow and Financing - As of June 30, 2025, the company had $3,602.5 million in cash, cash equivalents, and investments, along with $750.0 million in unused available credit from the DDTL Credit Facility[262]. - Net cash used in operating activities increased by $235.1 million to $1,258.9 million for the six months ended June 30, 2025, compared to the same period in 2024[295]. - Cash provided by investing activities increased by $1,301.8 million to $1,308.0 million during the six months ended June 30, 2025, compared to the same period in 2024[297]. - Net cash provided by financing activities decreased by $857.9 million to $141.7 million during the six months ended June 30, 2025, compared to the same period in 2024[299]. Debt and Capital Expenditures - The company issued $1.10 billion in 2030 Notes, with net proceeds of $1.08 billion after costs, and repurchased $1.05 billion of 2026 Notes using $931.4 million of these proceeds[212][213]. - The company anticipates cumulative capital expenditures of approximately $1.1 billion to $1.2 billion for fiscal year 2025 to support growth objectives[264]. - The company entered into the SIDF Loan Agreement for up to SAR 5.19 billion (approximately $1.4 billion) to finance costs related to the development and construction of AMP-2[272]. - The GIB Facility Agreement provided for two committed revolving credit facilities totaling SAR 1.0 billion (approximately $266.1 million) to support capital expenditures[278]. Market Risks and Inventory - The company is exposed to market risks primarily due to fluctuations in interest rates, equity prices, and inflationary pressures[322]. - The company relies on single-source suppliers, which poses a risk to the delivery of necessary components[325]. - Changes in estimates of future selling prices or production costs may lead to material write-downs of inventory[316]. - The company records inventory write-downs based on assumptions about current and future demand forecasts[317]. Strategic Agreements and Expansion - An agreement was reached to acquire select facilities and assets from Nikola Corporation, which is expected to enhance manufacturing capabilities and support EV production scaling[214]. - A vehicle production agreement with Uber was established, committing to purchase a minimum of 20,000 Lucid Gravity Plus vehicles over six years starting from late 2026[215]. - As of June 30, 2025, the company operated 58 studios and service centers globally, with plans for further expansion in sales and service operations[225]. - The company plans to expand its vehicle lineup with a new Midsize platform, scheduled for production start in late 2026, leveraging insights from existing models[211].