Lucid (LCID)2025-02-26 02:26Financial Data and Key Metrics Changes - In 2024, the company produced 9,029 vehicles, a 7% increase year-over-year, and delivered 10,241 vehicles, a 71% increase year-over-year [52][22] - GAAP gross margin for 2024 was negative 114%, an improvement from negative 225% in 2023, with Q4 gross margin at negative 89% [53][54] - Adjusted EBITDA in Q4 2024 was approximately negative 5.08 billion in cash and total liquidity of approximately 6.13 billion [59][64] Business Line Data and Key Metrics Changes - The Lucid Air was the third-best-selling EV in its segment in the U.S. for 2024, and the number-one best-selling EV in the second half of 2024 [23][24] - The Lucid Gravity has seen strong demand, with orders exceeding expectations, particularly for the Grand Touring trim [27][28] Market Data and Key Metrics Changes - The company is expanding its retail footprint in Europe, adding sales studios and service centers, particularly in Germany [38] - The company opened orders in Saudi Arabia in early February, expecting to produce vehicles for customers there [36] Company Strategy and Development Direction - The company aims to focus on scaling production, optimizing operations, and driving financial discipline while investing in long-term growth [14][16] - Strategic priorities include driving customer deliveries, advancing technology leadership, and expanding the technology license business [41][43] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand for the Lucid Gravity and the overall growth potential in the EV market [26][29] - The company expects to produce approximately 20,000 vehicles in 2025, with continued growth anticipated in 2026 [63][39] Other Important Information - The company plans to take a bolder approach to marketing in 2025, particularly for the Lucid Gravity [34][41] - The company is closely monitoring potential policy and regulation changes in the U.S. that could impact operations [61] Q&A Session Summary Question: When is revenue from tech plays expected and what categories of products will make up that revenue? - Management clarified that while the company sees ample opportunity to leverage technology beyond automotive, it does not mean deprioritizing the automotive business [70][72] Question: Are the recent discussions regarding potential tech deals with the same manufacturers as before? - Management confirmed that the recent discussions are with different manufacturers and that the list of potential partners is growing [75][76] Question: Are there concerns about losing customers due to long wait times for Gravity deliveries? - Management stated that the wait times are normal for new product launches and that order intake remains healthy [78][79] Question: Can you provide an update on the Gravity order book? - Management indicated strong demand for the Gravity, with most orders configured at prices above 120,000, despite limited marketing efforts [86][87] Question: What is the expected impact of new tariffs on the company? - Management estimated that potential impacts from tariffs could range from 7% to 12% on gross margins, but they are taking steps to mitigate these effects [126][127]