On May 5, Lucid Group (NASDAQ: LCID) announced results after the market closed, beating Wall Street estimates. For the quarter ended March 31, 2022, the company reported revenue of $57.7 million on 360 vehicles delivered to customers, beating estimates by $2.14 million.
Earning per share (EPS) of -$0.05 beat estimates by $0.29, while the company has $5.4 billion cash on hand, which is expected to keep it well funded into 2023.
Furthermore, it was noted that LCID is seeing strong demand for the Lucid Air, with reservations exceeding 30,000, which could be translated into $2.9 billion of potential sales.
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New pricing and upholding the revisions
Current pricing for existing reservations will be honored as well as any new ones made by May 31, 2022; as per the company, nonetheless, a revision of prices across all models will begin June 1, 2022.
“We also announced today that we are increasing prices of our vehicles that will go into effect at the beginning of June. The world has changed dramatically from the time we first announced Lucid Air pricing in September 2020, but I want to reassure our existing reservation holders that we will be honoring current pricing for them as well as for any new reservations made before the end of the month.” said Peter Rawlinson Lucid’s CEO and CTO.
Sherry House, Lucid’s CFO on the supply issues, stated:
“Similar to many companies in our industry, we continue to face global supply chain and logistics challenges, including Covid-related factory shutdowns in China. We are working closely with our suppliers to mitigate the impact of disruptions.”
LCID then reiterated its reduced guidance of 12,000-14,000 vehicle production forecast for 2022.
With strong demand for the Air model, investors and car enthusiasts can possibly look forward to Lucid’s next vehicle, a luxury SUV called Gravity which is expected in the first half of 2024, as the company confirmed.
If supply chain issues can be managed, the stock could return to its former glory days; currently, the shares are up 0.58% in the after-hours trading. In the next trading session, higher volatility could be expected, and the shares could see swings; however, investors can be content with the report and guidance the company provided for 2022.
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