Lucid stock (LCID) tumbled as the luxury electric vehicle maker announced second quarter deliveries that missed Wall Street expectations.
For the quarter, Lucid said it delivered 1,404 vehicles, missing Wall Street’s estimate of 1,873, and produced 2,173 vehicles in the quarter. In Q1, Lucid delivered 1,406 cars and produced 2,314, meaning the company didn't match its prior period’s output. In May, the California-based automaker said it was on track to produce 10,000 EVs in 2023.
Lucid’s struggle to meet its expectations comes in contrast to rivals like Rivian and legacy automakers like GM and Ford, which have met or exceeded their EV production targets.
"The [deliveries] disclosure was extremely disappointing, as LCID posted a sequential drop in volumes from the 2,314 units it produced and 1,406 units it delivered in Q1," CFRA analyst Garrett Nelson wrote in a note today. "We continue to view LCID as a broken growth story and its ramp-up rate has been particularly disappointing considering its newer, state-of-the-art factory in Casa Grande, Arizona."
Part of the issue is that the Lucid Air, its sole EV, has a price tag that starts around $90,000, which may be hurting demand. In Q1 the company began offering its own version of the federal government’s $7,500 tax credit to boost sales, though that deal has been removed from the company’s website.
Lucid also said it began “material shipments” of its EVs to the Kingdom of Saudi Arabia, where the company has a deal to deliver 100,000 EVs to the kingdom for use by the government. Last month, Saudi Arabia’s Private Investment Fund, which owns over 60% of the company, agreed to buy 265.7 million additional shares of Lucid worth $1.8 billion. Lucid intends to build a factory in the kingdom with a planned annual capacity of 155K EVs a year.
NEW YORK, NY- March 17: Lucid preview's it's new electric car, Lucid Air, at CNBC Nasdaq in New York City on March 17, 2021. Credit: RW/MediaPunch /IPXIt was not all negative news for Lucid last quarter, however, as it struck a "long-term strategic technology partnership” with British luxury automaker Aston Martin (ARGGY) to supply components and systems to power future Aston Martin EVs.
A potential revenue stream from selling Lucid IP and components was cheered by investors, with Lucid's CEO Peter Rawlinson claiming that licensing Lucid's tech has "mouthwatering potential" and other car companies have approached the EV maker.
Lucid said it would release its second quarter financial results after the bell on Monday, August 7.
Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and on Instagram.
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