Lucid (US:LCID)2025-11-05 21:14Revenue and Production - Revenue for the three months ended September 30, 2025, was $336.6 million, a 68% increase from $200.0 million in the same period of 2024, and for the nine months ended September 30, 2025, revenue was $831.1 million, up 45% from $573.4 million in 2024[229][230]. - Vehicle production for the three months ended September 30, 2025, was 3,891 units, with 4,078 vehicles delivered, while for the nine months ended September 30, 2025, production totaled 9,966 units and deliveries reached 10,496 units[214]. - The company entered into a Vehicle Production Agreement with Uber to deliver a minimum of 20,000 Lucid Gravity Plus vehicles over six years starting from late 2026[216]. Financial Performance - The cost of revenue for the three months ended September 30, 2025, was $670.2 million, a 62% increase from $412.5 million in the same period of 2024, leading to a gross loss of $333.6 million[231]. - The gross margin for the three months ended September 30, 2025, was -99.1%, reflecting ongoing challenges in cost management and pricing strategies[231]. - Cost of revenue increased by $257.7 million, or 62%, for the three months ended September 30, 2025, and by $377.8 million, or 29%, for the nine months ended September 30, 2025, compared to the same periods in the prior year[233]. - Gross margin improved to (99.1)% for the three months and (100.4)% for the nine months ended September 30, 2025, compared to (106.2)% and (124.6)% for the same periods in the prior year[237]. - Total operating expenses increased by $50.4 million, or 9%, for the three months ended September 30, 2025, and by $28.9 million, or 2%, for the nine months ended September 30, 2025, compared to the same periods in the prior year[238]. - Selling, general, and administrative expenses increased by $49.5 million, or 21%, for the three months ended September 30, 2025, and by $95.1 million, or 14%, for the nine months ended September 30, 2025, compared to the same periods in the prior year[243][244]. Cash Flow and Liquidity - The company had $2,993.3 million in cash, cash equivalents, and investments as of September 30, 2025, along with $750.0 million of unused credit from the DDTL Credit Facility[264]. - The company expects to maintain adequate liquidity for at least the next 12 months to fund ongoing operations and research and development projects[265]. - Cash used in operating activities increased by $529.0 million to $2,015.5 million during the nine months ended September 30, 2025, compared to the same period in the prior year[299]. - Cash provided by investing activities increased by $1,273.2 million to $1,563.1 million during the nine months ended September 30, 2025, primarily due to higher investment maturities[301]. - Net cash provided by financing activities decreased by $1,201.0 million to $517.7 million during the nine months ended September 30, 2025, compared to the same period in the prior year[303]. Debt and Financing - The company issued $1,100.0 million of the 2030 Notes in April 2025, which accrue interest at 5.00% per annum[268]. - The SIDF Loan Agreement allows for loans up to SAR 5.19 billion (approximately $1.4 billion) to finance the development and construction of AMP-2[274]. - MISA has agreed to provide economic support for capital expenditures related to the construction of AMP-2, contingent on the completion of certain milestones[277]. - The company entered into the 2025 GIB Credit Facility, increasing the committed amount from SAR 1.0 billion (approximately $266.1 million) to SAR 1.9 billion (approximately $506.6 million)[282]. - As of September 30, 2025, the company had outstanding borrowings of SAR 1,175 million (approximately $313.3 million) with a weighted average interest rate of 6.80%[284]. Inventory and Cost Management - Inventory write-downs were $192.1 million and $528.5 million for the three and nine months ended September 30, 2025, respectively, compared to $154.9 million and $446.9 million for the same periods in the prior year[235]. - The company is focused on optimizing its supply chain and manufacturing plans in response to macroeconomic uncertainties and trade policy changes[215][219]. - Inventory is valued at the lower of cost or net realizable value, with write-downs for excess or obsolete inventories based on demand forecasts[318]. Research and Development - The company plans to expand its vehicle lineup with a new Midsize platform, scheduled for production start in late 2026, leveraging insights from previous models[215]. - Research and development expenses remained relatively flat at $325.3 million for the three months ended September 30, 2025, compared to $324.4 million in the prior year[240]. Market and Operational Risks - The company is exposed to supply risk due to reliance on single-source suppliers, which could adversely affect operations and financial condition[329]. - A hypothetical 100 basis point increase in interest rates would result in an estimated $13.4 million decline in the fair market value of the company's investment portfolio[327]. Other Financial Metrics - The company recorded a loss of $36.4 million for the change in fair value of derivative liabilities associated with redeemable convertible preferred stock for the three months ended September 30, 2025[253]. - The company recognized an unrealized gain of $0.4 million for the change in fair value of common stock warrant liability for the three months ended September 30, 2025[248]. - The company generated an accumulated deficit of $14.8 billion as of September 30, 2025, reflecting significant losses from operations[295]. - The company completed a public offering in June 2023, resulting in aggregate net proceeds of $1.2 billion[291]. - The company received SAR 366 million (approximately $97.5 million) in cash support during the year ended December 31, 2023, with $62.5 million recorded as deferred liability[280].