Lucid Group Inc. LCID shares surged nearly 10% in after-hours trading Tuesday following the electric vehicle maker’s announcement of ambitious 2025 production targets and the unexpected departure of its founder and CEO.
What Happened: The luxury EV manufacturer projected production of 20,000 vehicles in 2025, significantly above analyst expectations of 14,700 and more than double the 9,029 vehicles produced in 2024. Simultaneously, the company revealed that Peter Rawlinson would step down as CEO, with COO Marc Winterhoff assuming the role on an interim basis.
Gary Black, Managing Partner at The Future Fund LLC, expressed skepticism about the timing and circumstances of Rawlinson’s exit.
“It’s highly unusual for a CEO to step down amicably before earnings and not be given an opportunity to provide a farewell on the earnings call,” Black wrote on X. “That $LCID will search for a permanent CEO in the interim is also unusual if Rawlinson is capable of remaining in the role as CEO.”
Black speculated that either medical reasons or personal issues may have prompted Rawlinson’s sudden departure. While Rawlinson will stay on as a technical advisor to the board chairman, he will no longer be involved in day-to-day operations, effective immediately.
Why It Matters: For the fourth quarter of 2024, Lucid reported revenue of $234.5 million, beating estimates of $214.22 million, and a loss of 22 cents per share, better than the expected 27-cent loss. The company delivered 3,099 vehicles in the quarter.
“We saw significant momentum in 2024 with four consecutive quarters of record deliveries,” said Gagan Dhingra, Interim CFO, noting substantial progress in improving gross margins and managing operating expenses.
Lucid ended the quarter with approximately $6.13 billion in total liquidity, bolstered by support from the Public Investment Fund.
Price Action: Lucid Group Inc. closed at $2.61 on Tuesday, down 6.12% for the day. In after-hours trading, the stock rose 9.59% to $2.86, according to data from Benzinga Pro.
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