Lucid stock (LCID) – Get Lucid Group, Inc. Report is selling off in after-hours trading. The culprit: an all-around Q4 earnings miss that was ill-received by investors. Shares traded 13% lower.
The company’s value has had a turbulent day. Lucid’s stock rose nearly 10% during regular trading, adding $2.63 to its per-share value. However, after the company reported its results. Its shares fell, erasing 10.8% of its value, or around $3.14 per share.
Financial Highlights
Lucid generated Q4 2021 revenues of $26.4 million. The company sold $21.3 million worth of its Lucid Air Dream Edition vehicles during the period, which its earnings notes helpfully explain has up to 1,111 horsepower.
It depends on the trim selection and other options. The lamest, weakest, slowest, most-pokey car from the company has to glide along with a mere 800 horsepower.
The deliveries were not enough to push Lucid close to breaking even. Indeed, the company remains nearly comedically unprofitable. Revenue costs came to $151.5 million for the fourth quarter, research costs were $163.6 million and SG&A costs came to a staggering $197.0 million.
All told, Lucid posted an operating loss of $485.7 million in Q4 2021. Or, in the quarter, for every car Lucid delivered in the final three months of 2021, it lost $3.9 million in operating terms.
Production expansion
As part of the 2021 earnings report, Lucid Motors has relayed that the new 2.85 million sq. ft. expansion of its AMP-1 production facility remains on track and will quadruple the facility in overall size. AMP-1’s current output is 34,000 units annually, but it will jump to 90,000 units when Phase 2 is complete.
Additionally, Lucid confirmed previous speculation that the company will be erecting a manufacturing facility in the Kingdom of Saudi Arabia – its first international facility. Production at the new international facility is expected to begin production in 2025. Lucid expects the plant to add up to $3.4 billion in value to the company over 15 years.
During the call, Lucid CFO Sherry House explained that Lucid is working to expand its retail presence in Europe and the Middle East, while it begins to lay the groundwork in the Asia-Pacific market, more specifically, China.
Future Outlook
Investors expect the company’s revenue to scale to $2.01 billion in the current year. Is that number possible? Well, with 125 cars delivered in Q4 2021 and $21.3 million worth of revenue from those sales, Lucid had an ASP of $170,000 in the quarter.
If it manages to build 13,000 cars, the mid-point of its guidance, sells them all, and holds to its Q4 ASP, then the company would see $2.22 billion in 2022 revenues. That’s the bull case.
