Lucid Group, Inc. LCID, which competes with electric vehicle leader Tesla, Inc. TSLA in the premium segment, reported Monday after the close disappointing first-quarter results. The company also lowered its 2023 production guidance.
In premarket trading on Tuesday, Lucid shares dived 9.47% to $6.98, according to Benzinga Pro data.
The Newark, California-based company reported first-quarter revenue of $149.4 million compared to the Street estimate of $209.88 million. The company reported a net loss of $770.53 million, wider than the year-ago loss of $604.61 million. On a per-share basis, the loss widened from $0.36 to $0.43.
More importantly, the company did not update reservations for its Lucid Air EVs. It guided to 2023 production of over 10,000 units, lower than an earlier outlook of 10,000 to 14,000 units.
The company drew down about $1 billion of cash during the quarter and said its $4.1 billion in liquidity would fund it through at least the second quarter of 2024.
Commenting on data that highlighted the loss per vehicle incurred by Lucid, Tesla CEO Elon Musk warned that production is hard and achieving positive cash flow is excruciating.
Reviewing the results, BofA Securities maintained a Neutral rating and reduced the price target from $10 to $8.
Needham maintained a Buy rating and took down the price target from $16 to $10.
Cantor Fitzgerald maintained an Outperform rating and lowered the price target from $13 to $10.
See Also: Best Electric Vehicle Stocks
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