Lucid (LCID)2025-05-06 21:30Financial Data and Key Metrics Changes - In Q1 2025, the company produced 2,212 vehicles, a 28% year-over-year increase, and delivered 3,109 vehicles, up more than 58% year-over-year [5][31] - Total revenue for the quarter was $235 million, representing a 36% growth year-over-year [31] - Gross margin improved significantly, with Q1 gross margin at negative 97.2%, up from negative 134.3% in the prior year quarter [31] - Adjusted EBITDA in Q1 was negative $563 million, an improvement of 2% versus Q4 [34] Business Line Data and Key Metrics Changes - The Lucid Air was named the Best Luxury Electric Car for the fourth consecutive year and remained the number one best-selling EV in the U.S. [6][7] - The Lucid Gravity is generating strong interest, with over three-quarters of orders coming from new customers [11][12] Market Data and Key Metrics Changes - The company faced temporary systems issues in Saudi Arabia that have now been resolved, impacting delivery numbers [31] - The company is seeing increased interest in its technology access and licensing business, with ongoing discussions with various OEMs [13][14] Company Strategy and Development Direction - The company aims to rewrite the EV playbook with the Lucid Air and Lucid Gravity, focusing on innovation and technology leadership [26] - There is a strong emphasis on vertical integration to maintain control over components and mitigate tariff impacts [22][23] - The company is exploring strategic adjustments to align with changing market conditions, including potential vehicle price changes and supply chain bifurcation [24][25] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertainty in the macroeconomic environment and its potential impact on financial performance, particularly regarding tariffs [19][37] - The company is optimistic about its production target of approximately 20,000 vehicles in 2025, despite market uncertainties [38] - Management emphasized the importance of delivering high-quality vehicles and maintaining a focus on long-term value creation [52][40] Other Important Information - The company completed a convertible notes offering with strong support from the public investment fund, extending liquidity into the second half of 2026 [30] - The recent acquisition of the Nikola factory is expected to mitigate some capital expenditure needs [47] Q&A Session Summary Question: Can the midsize rollout and ramp be accelerated due to the acquisition of the Nikola factory? - Management clarified that while the acquisition is beneficial, accelerating the midsize platform is not feasible due to current uncertainties in tariffs and supply chains [44][46] Question: Are there plans for Lucid to sell or lease its technology to other manufacturers? - Management confirmed that this has always been the plan, with ongoing discussions with various OEMs despite current tariff concerns [48] Question: What is the impact on Lucid's supply chain due to Chinese curbs on rare earth material exports? - Management reiterated the importance of vertical integration, allowing the company to control components and mitigate supply chain risks [49] Question: Does Lucid lack urgency regarding production ramp and deliveries? - Management emphasized the importance of thoughtful execution in bringing high-quality vehicles to market, stating that they are focused on delivering products that meet high standards [51][52] Question: Can you provide an update on the Atlas drivetrain? - Management indicated that an announcement regarding the Atlas drivetrain is expected in the coming months [57] Question: How should investors think about the breakdown between sedans and the Gravity in terms of production and deliveries? - Management expects the Lucid Air to maintain steady sales, with the majority of growth coming from the Gravity [61][62]