Lucid announced today its third quarter 2021 financial results, including business highlights and released an update about the future plans.
The recent months were very busy for the company, which entered NASDAQ in July, started production of the Lucid Air on September 28, and began customer deliveries on October 30. Currently, deliveries spread across the U.S., while the Air itself was named the 2022 MotorTrend Car of the Year.
Lucid Air - 17,000+ reservations
According to the report, Lucid has increased the number of customers reservation for the Air model to 13,000 during the Q3 and as of November 15, it exceeds 17,000.
That's not bad, especially since in 2022 the production target is an ambitious 20,000 and more reservations might be added by that time. The lineup currently consists of the sold-out Lucid Air Dream Edition and a more regular Grand Touring version. Two less expensive Touring and Pure versions will be launched later.
The company says that the 13,000 reservations in Q3 were potentially worth about $1.3 billion in revenues. We guess that 17,000 will be about $1.7 billion.
In terms of financial results, the company says that it has significantly strengthened its balance sheet and has approximately $4.8 billion in cash. $4.4 billion was added:
"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."
That must last for some time, as the company is now investing heavily in the expansion of its plant, the Advanced Manufacturing Plant (AMP-1) in Casa Grande, Arizona, as well as in its in-house direct sales and service network. Another cost is the development of the Project Gravity - a luxurious, all-electric, large SUV, which might be unveiled in 2022.
In Q3 2021, Lucid noted a net loss of over $0.5 billion (welcome to the capital-intensive automotive market):
Let's focus for a while on manufacturing. The Lucid AMP-1 has production capacity of up to 34,000 per year. At least this is what could be achieved in the future as the target for 2022 is 20,000 units produced.
There is also a second, smaller facility - the Lucid Powertrain Manufacturing Plant (LPM-1) a few miles from AMP-1 in Casa Grande.
The company has broken ground for the second phase at the Lucid AMP-1 to add additional manufacturing capacity of up to 56,000 units per year, for a total of 90,000 per year by the end of 2023. That would be for the Project Gravity, we assume.
"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. "
Gallery: Lucid Motors plant in Casa Grande, Arizona
Lucid Air sales
According to Lucid, in Q3 the footprint was expanded to "...13 locations in key geographies that align with Lucid's expected customer demand, and will continue expansion of its retail and service network."
Market launch in Canada is expected this year (Q4'21), in Europe and EMEA in general in 2022, and in China in 2023.
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.
Gallery: Lucid Air Dream Edition
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."
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."
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."