Electric vehicle (EV) maker Lucid Group on Monday reported first-quarter revenue well below Wall Street estimates and forecast 2023 production at the low end of previous guidance as a price war sparked by Tesla hurt sales.
Shares of the Air luxury sedan maker fell about 9% in extended trading.
Tesla’s move to cut prices and increase volume — a strategy that CEO Elon Musk says is part of the electric carmaker’s recessionary scenario — and lower-priced electric models from traditional automakers have hurt startups like Lucid and Rivian Automotive.
Faced with mounting losses, Lucid has largely refrained from cutting prices, except for a $7,500 discount on some versions of the Air luxury sedan purchased before March 31.
Instead, it announced at the end of March that it would lay off 18% of its workforce, around 1,300 employees, as part of a restructuring plan aimed at cutting costs.
According to Refinitiv, the company reported revenue of $149.4 million for the quarter, compared to analysts’ average estimate of $209.9 million. Last month, it reported first-quarter production and shipment figures that were lower than in the previous three months.
“Revenue was actually the weakest since the second quarter of last year, so there’s a big gap on the top line,” said CFRA Research analyst Garrett Nelson. “This may indicate that this price war is having a direct impact on their results.”
Lucid CEO Peter Rawlinson said in a statement Monday that the company is on track to produce more than 10,000 vehicles in 2023, up from a previous forecast of 10,000 to 14,000 units this year.
“It appears to be a subtle shift in guidance,” Nelson said.
First-quarter net loss widened to $779.5 million from $604.6 million a year earlier, while cash and cash equivalents fell to $900 million by the end of the first quarter from $1.74 billion in the fourth quarter.
CFO Sherry House said the company has $4.1 billion in liquidity, enough to fund the luxury car maker at least through the second quarter of next year.
Lucid said in a separate regulatory filing on Monday that it may raise up to $7.4 billion through equity, debt securities, warrants or other offerings.
The electric vehicle maker is scheduled to unveil its Gravity SUV later this year before a 2024 debut.
