Lucid Group has released its Q4 and full year 2022 earnings report, and the main takeaway is a much lower production forecast for 2023 than analysts expected.
The EV startup announced a 2023 annual production guidance of 10,000 to 14,000 vehicles, which looks good compared to last year's full production of 7,180 vehicles but not when you look at analysts' expectations.
Analysts on average anticipated the company would set a production goal of 21,815 cars, according to Visible Alpha cited by Reuters. Lucid's 2023 production forecast, together with a major drop in orders reported during the fourth quarter of 2022, sent the electric carmaker's shares down 11 percent after hours.
The company reported more than 28,000 orders as of February 21, 2023, down 6,000 from the number reported as of November 7, 2022, after it delivered about 1,900 Lucid Air vehicles in Q4 and saw cancellations – about 4,000 of them judging by the numbers provided.
Lucid produced 3,493 vehicles during Q4 at its manufacturing facility in Casa Grande, Arizona but delivered only 1,932 during the same period.
In 2022, its first full year of production, the company produced 7,180 Air sedans, exceeding the annual production guidance of 6,000 to 7,000 vehicles – which had been halved on two occasions – and delivered just 4,369 vehicles.
Gallery: Lucid Motors plant in Casa Grande, Arizona
The EV startup reported fourth-quarter revenue of $257.7 million and annual revenue of $608.2 million, ending the quarter with approximately $4.9 billion total liquidity. Lucid estimates the cash will fund it at least into the first quarter of 2024.
The Q4 revenue of almost $258 million rose significantly from the $26.4 million reported a year earlier but was below analysts' expectations of $302.6 million (according to IBES data from Refinitiv). On a more positive note, the company's fourth-quarter net loss narrowed to almost $473 million from a loss of $1.05 billion a year earlier.
Lucid CEO Peter Rawlinson said during the company's quarterly call with analysts on February 2022 that the company's production issues are behind it, with sales representing the main challenge now.
"We've solved production. That is not the issue here now. My focus is on sales. And here's the thing: we've got what I believe to be the very best product in the world and just too few people aware of not just the car but the company."
The executive added that the company's goal in 2023 is to amplify its sales and marketing efforts to increase Lucid Air deliveries to customers around the world.
Lucid Group CFO Sherry House said that the company will continue "to focus on strong capital discipline, leaving no stone unturned for every cost optimization." She noted that while Lucid is gearing for growth, it is also taking a comprehensive look at reducing costs.