Lucid Q2 earnings preview: Why production ramp is key for investors

For weary Lucid Group (LCID) investors, Wednesday’s Q2 earnings report could either bring relief — or more pain.

Wall Street is expecting Lucid to report the following top and bottom line figures after the bell:

Q2 Revenue: $147.05 million

Q2 Adjusted EPS (loss): ($0.34)

That revenue figure would represent an over 150% jump from Q1, when the electric automaker delivered 360 vehicles for the quarter.

From a profitability perspective, analysts are also watching for an adjusted net income loss of $520 million and EBITDA loss of $410.7 million.

Key for Lucid shareholders is whether the automaker has an update on its production forecast as the company ramps. Earlier this year the company lowered its full-year production forecast to 12,000-14,000 vehicles, when it had previously guided 20,000 vehicles produced for the year. Whether the automaker can show production ramping up in the thousands for Q2 will give analysts an indication that Lucid’s lowered production forecast is feasible.

Arizona Governor Doug Ducey rides in the passenger seat as CEO Peter Rawlinson drives a Lucid Air car off the line to cheers at the Lucid Motors plant in Casa Grande, Arizona, U.S. September 28, 2021. REUTERS/Caitlin O'HaraAs for the Lucid Air, the company’s only current model in production, Lucid disclosed 30,000 reservations for the all-electric sedan. This figure does not include the 100,000 vehicles ordered by the government of Saudi Arabia, which will be delivered over the next ten years.

Note that Saudi Arabia’s Public Investment Fund is the biggest investor in Lucid with a 62% stake. The partnership goes beyond a financial one; however, as earlier this year Lucid announced it would be building a factory in Saudi Arabia, with a planned annual capacity of 155,000 EVs a year.

Lucid’s current factory located in Casa Grande, Arizona. aims for an annual production capacity of 30,000 EVs a year. That facility will eventually build the Lucid Gravity SUV, which is slated to begin production in the first half of 2024.

Lucid shares are higher today in midday trade, but are down 50% for the year.

Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and on Instagram.

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