Lucid Group, Inc. (Nasdaq: LCID) (“Lucid” or the “Company”), announced financial results for the third quarter ending September 30, 2021.
Peter Rawlinson, CEO & CTO of Lucid, said, “We are tremendously excited by our accomplishments in our first quarter as a publicly traded company. We successfully began production of vehicles for customer deliveries, continued investing in capacity expansion of our manufacturing facility in Arizona, and opened new retail and service locations in advance of the Lucid Air launch. We were also pleased to receive independent validation by the EPA of our industry-leading range of over 500 miles for the Lucid Air. Our progress this quarter demonstrates our focus on execution, our cutting-edge technology, and our vision to help with solutions to address the climate challenges we all face. We look forward to ramping up production of our Grand Touring, Touring, and Pure models and expanding our footprint internationally.”
Sherry House, CFO of Lucid, said: “Lucid’s strong balance sheet following the closing of the merger enabled us to drive the growth of our business and execute on our larger mission to inspire the adoption of sustainable energy. Moving forward, we anticipate continuing vehicle deliveries to customers, investing in capacity and capabilities, and providing value to all of our stakeholders.”
Third Quarter Financial Highlights
- In the third quarter of 2021, Lucid significantly strengthened its balance sheet through the closing of the de-SPAC reverse merger + PIPE, bringing approximately $4.4B onto Lucid’s balance sheet.
- Continued to invest in the business, readying production and deliveries, globalization of our retail network and adding headcount across R&D and SG&A to continue growing our core operations.
- Initiated investment in property, plant, and equipment associated with Phase 2 expansion of manufacturing, continued investment in vehicle program development, and ongoing expansion of retail, delivery, and service capacities.
Third Quarter Business Highlights
- Received EPA Certification as Longest Range Production EV: Lucid’s technological prowess is a key differentiator for the company, with a “clean-sheet” approach to vehicle development that resulted in the ground-breaking Lucid Air, with six trim variants whose range exceeds 450 miles on a single charge. The Dream Edition R achieves 520 miles of range on a single charge.
- Refined Quality and Received Certifications: In the third quarter of 2021, Lucid’s engineering efforts were focused on optimizing product quality and delivering final certifications in the lead-up to factory commissioning and customer deliveries. Lucid’s laser focus on engineering was validated through significant positive press and third-party validation by media, customers, and certification agencies like the EPA.
- Commissioned and Started Production at the First Greenfield, Dedicated EV Factory in North America: AMP-1 in Casa Grande, AZ, is operational with production capacity to deliver up to 34,000 vehicles per year. Lucid is further differentiated with in-house powertrain manufacturing at Lucid Powertrain Manufacturing Plant (LPM-1) a few miles from AMP-1 in Casa Grande, AZ.
- Kicked off expansion of production capacity and capabilities: Lucid kicked off the expansion of AMP-1’s manufacturing capacity, expected to provide production capacity for up to 90,000 vehicles per year by the end of 2023, by expanding Lucid Air production capacity and adding production capacity for the “Project Gravity” SUV. The phase 2 expansion is expected to add 2.85M sq. ft. of production footprint and will further vertically integrate production processes.
- Hosted Media, Customers and Lucid Stakeholders at AMP-1 Commissioning Event: Lucid hosted a commissioning event for more than 150 customers, members of the media, institutional investors, and sell-side analysts, among other Lucid stakeholders.
- Continued Expanding Retail Network: Lucid’s direct-to-consumer sales are supported by brick-and-mortar retail studio and service center locations, delivering best-in-class customer experience in all elements of our customers’ journey of vehicle ownership. Lucid expanded its footprint in Q3 to 13 locations in key geographies that align with Lucid’s expected customer demand, and will continue expansion of its retail and service network, including expansion into Canada (4Q’21), EMEA (’22), and China (’23), unlocking global demand for the sale of our product in the luxury vehicle marketplace.
- Increased Reservation Volume: Surpassed 13,000 reservations in Q3 for estimated order book of greater than $1.3B.
- Announced Lucid Care: Lucid announced Lucid Care, detailing our service capabilities and offerings.
Looking ahead, Peter Rawlinson noted “We see significant demand for the award-winning Lucid Air, with accelerating reservations as we ramp production at our factory in Arizona. We remain confident in our ability to achieve 20,000 units in 2022. This target is not without risk given ongoing challenges facing the automotive industry, with global disruptions to supply chains and logistics. We are taking steps to mitigate these challenges, however, and look forward to the launch of the Grand Touring, Touring, and Pure versions of Lucid Air through 2022.”