Lucid Group's Q4 Loss Narrower Than Expected, Revenues Rise Y/Y

Core Insights - Lucid Group reported a narrower fourth-quarter 2024 loss of 22 cents per share, compared to the Zacks Consensus Estimate of a loss of 26 cents and a loss of 29 cents in the previous year [1] - Revenues reached $234.5 million, exceeding the Zacks Consensus Estimate of $225 million, and reflecting a 49% year-over-year increase driven by strong vehicle deliveries and supply recovery [1] Q4 Highlights - Total production for the quarter was 3,386 units, with customer deliveries of Lucid Air reaching 3,099 units, up from 1,734 units in the same quarter last year [2] - The total gross loss was $208.8 million, an improvement from a gross loss of $252.9 million in the prior-year quarter, with a gross margin of negative 89%, compared to negative 161% in the year-ago quarter [2] Operating Expenses - Total operating expenses were $524.2 million, an increase from $484 million in the prior-year quarter [3] - Research and development expenses were $280.3 million, up from $243 million in the fourth quarter of 2023, while selling, general, and administrative expenses rose to $243.9 million from $241 million [3] - Adjusted EBITDA was a negative $577 million, showing improvement from the negative $605 million recorded in the fourth quarter of 2023 [3] Cash Flow and Financial Position - Net cash used in operating activities was $533.1 million, up from $474.6 million in the year-ago quarter, with capital expenditures of $291.6 million compared to $272.6 million last year [4] - Free cash flow for the quarter was a negative $824.8 million [4] - As of December 31, 2024, Lucid had $1.61 billion in cash and cash equivalents, an increase from $1.37 billion a year earlier, while long-term debt was $2 billion, slightly up from $1.99 billion [5] 2025 Guidance - For 2025, Lucid expects to produce approximately 20,000 vehicles and anticipates capital expenditures of around $1.4 billion [6] - The company expects to maintain sufficient liquidity into the second half of 2026 and plans to start production of its midsize platform in late 2026 [6] Zacks Rank and Comparisons - Lucid currently holds a Zacks Rank 4 (Sell) [7] - Comparatively, Dana (DAN) has a Zacks Rank 1 (Strong Buy), while General Motors (GM) and Custom Truck One Source (CTOS) both hold a Zacks Rank 2 (Buy) [7]