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, marking the fifth consecutive quarter of record deliveries [6][32] - Total revenue for the quarter was $235 million, representing a 36% growth year-over-year, with $31.5 million recognized in regulatory credit revenue [33] - The GAAP gross margin improved to negative 97.2%, up from negative 134.3% in the prior year quarter, reflecting higher regulatory credit revenue and cost management [33][34] - Adjusted EBITDA was negative $563 million, an improvement of 2% versus Q4 [36] Business Line Data and Key Metrics Changes - The Lucid Air remained the number one best-selling EV and the third best-selling sedan overall in its segment in the U.S. [8] - The Lucid Gravity is generating strong interest, with over three-quarters of orders coming from new customers [12] Market Data and Key Metrics Changes - The company experienced significant demand for the Lucid Air, which was named Best Luxury Electric Car for the fourth consecutive year [7][8] - The marketing campaign for the Lucid Gravity reached over 11 million people on social media, significantly increasing brand awareness [10] Company Strategy and Development Direction - The company is focused on building a vertically integrated enterprise designed to lead in the next era of mobility, with plans to expand its vehicle lineup with a mid-sized platform scheduled for production in late 2026 [41][42] - The company is exploring strategic adjustments to align with changing market conditions, including vehicle price changes and tariff risk mitigation [25][26] Management's Comments on Operating Environment and Future Outlook - Management acknowledged increased uncertainty in the market due to tariffs and supply chain issues but expressed confidence in the company's ability to navigate these challenges [21][39] - The company aims to produce approximately 20,000 vehicles in 2025, despite market uncertainties [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 [32] - The acquisition of the Nikola factory is expected to mitigate some capital expenditure needs [48] 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, the timeline for the midsize platform remains late 2026 due to complexities in sourcing and tariffs [45][46] Question: Are there plans for Lucid to sell or lease its technology to other manufacturers? - Management confirmed ongoing discussions with various OEMs regarding technology licensing, emphasizing the strategic direction of Lucid Group [49] Question: What is the impact on Lucid's supply chain due to Chinese curbs on rare earth material exports? - Management highlighted the importance of vertical integration, allowing the company to mitigate risks associated with rare earth material shortages [50][51] Question: Is it fair to say that Lucid lacks urgency regarding production ramp and deliveries? - Management emphasized the importance of quality over speed, stating that they are focused on delivering high-quality vehicles despite some supply chain bottlenecks [52][53] Question: Can you provide an update on test drives and order perspectives for the Gravity? - Management reported strong order inflow and plans to roll out test drives as vehicles meet quality standards [56][57] Question: What is the plan to address the convertible bonds maturing in 2026? - Management stated that they will remain opportunistic regarding financing and timing for addressing convertible bonds [70][71]