Lucid Group, Inc. Q3 FY2024 earnings call

• Delivered record 2,781 vehicles in Q3, outperforming seasonal trends. - Produced 1,805 vehicles in Q3 and is on track to produce approximately 9,000 vehicles in 2024. - Implemented cost optimization programs at the Arizona factory, transitioning manufacturing processes in-house. - Rolled out over-the-air software updates, including Lucid UX 2.4 and 2.5, enhancing ADAS and user features. - Lucid Air earned a 5-star safety rating from NHTSA. - Opened Arizona factory Phase 2 to analysts, showcasing automation and cost-saving opportunities. - Opened orders and pricing for the Lucid Gravity SUV, with production scheduled for late 2024.

During the third quarter, Lucid produced 1,805 vehicles and delivered 2,781 vehicles, which was a 91% year-over-year increase and a 16% sequential increase. Revenue for the third quarter was approximately $200 million, marking a 45.2% year-over-year growth but being flat sequentially. Product mix influenced the average selling price, and 8% of deliveries were under operating lease accounting with immaterial revenue for the quarter.

• Reaffirmed 2024 production guidance of approximately 9,000 vehicles. - Updated 2024 CapEx guidance to approximately $1 billion from the prior $1.3 billion, reflecting decelerated capital outlay into 2025. - Lucid Gravity is scheduled to start production in late 2024, and the high-volume midsized platform is slated for late 2026. - The recent $1.75 billion capital raise provides sufficient liquidity to support operations well into 2026.

• Market conditions and macroeconomic factors that can impact share price and funding. - Dependence on successful market adoption of the Lucid Gravity and the midsized platform. - Challenges in scaling production and achieving cost targets as planned.

Q: With the share price at all-time lows, what can be done for early investors?

A: Peter reassured early investors of the long-term strategy, highlighting the potential of the Lucid Gravity and midsized platform as growth drivers. Gagan noted the commitment to maintaining a strong financial position to enhance shareholder value.

Q: Plan to offer a more affordable vehicle?

A: Peter stated the midsized vehicle is scheduled to start production in late 2026, targeting a price range of $48,000 to $50,000 and aiming to address a significantly larger market.

Q: Chances of the Saudis buying out Lucid completely?

A: Peter emphasized the long-term partnership with the PIF and focused on the company's technology and growth initiatives rather than speculating on a complete buyout.

Q: Margin potential for Lucid Air and Gravity?

A: Peter discussed the reuse of powertrain technology between Air and Gravity, noting cost reuse and scale as key to achieving positive margins, with Gravity leveraging carryover powertrain elements.

Q: Unit mix for next year with Gravity ramp?

A: Peter anticipated a manufacturing-constrained ramp for the Lucid Gravity Grand Touring initially, with a transition to the Touring model later in 2025 as manufacturing and market conditions allow.