Lucid (US:LCID) The Motley Foolยท2025-11-15 08:14Core Insights - Lucid has achieved seven consecutive quarters of record deliveries but has missed Wall Street earnings estimates for two consecutive quarters [2][3] - The company reported a 68% increase in revenue for Q3, totaling $336.6 million, but fell short of the expected $379.1 million [3] - Lucid's adjusted loss per share was $2.65, worse than the anticipated loss of $2.27 per share [3] Financial Performance - The removal of the $7,500 U.S. federal EV tax credit has impacted demand for EV makers, including Lucid [3] - Lucid's total liquidity at the end of Q3 was $5.5 billion, with approximately $1.6 billion in cash and cash equivalents [4] Capital and Funding - Lucid has agreed to increase a delayed draw term loan credit facility from $750 million to roughly $2 billion from Saudi Arabia's Public Investment Fund [4] - This funding extension is seen as a positive move but indicates the need for further capital raising, which could dilute existing shareholders [4] Production and Supply Chain - Lucid plans to significantly increase production of its Gravity SUV in Q4, although production increases have been minimal quarter to quarter [5] - The company has lowered its 2025 production forecast to 18,000 units from a previous range of 18,000 to 20,000 due to supply chain issues [5] Future Prospects - Lucid's product pipeline includes a midsize crossover scheduled for late 2026 and two smaller crossovers launching in mid-2028 and mid-2029 [7] - A partnership with Uber Technologies involves a $300 million investment to develop driverless vehicles, integrating Nuro's autonomous driving system [7] Market Position - Despite having a strong partnership and a significant backer in Saudi Arabia's PIF, Lucid faces challenges such as production inefficiencies, executive turnover, and cash burn [8] - The company remains a high-risk investment with potential upside, but caution is advised for investors [9]