Lucid Motors Reveals New Details on Gravity SUV and Delivery Numbers
Lucid Motors (LCID) provided new updates today during its Technology & Manufacturing Day, unveiling details about its full-size Gravity SUV, scheduled for release in late 2024. Additionally, updated delivery figures for 2024 were announced, along with a preview of an upcoming midsize SUV.
Lucid Motors Gravity SUV on Track for Late 2024 Release
Lucid Motors CEO Peter Rawlinson confirmed that the Gravity SUV is on track for a late 2024 debut. He emphasized that the SUV will be produced cost-effectively. Rawlinson addressed misconceptions about the cost of Lucid’s EV technology.
“Our electric drive units are not only competitively priced, but also very cost-efficient,” Rawlinson said. “They enable a significantly smaller battery, leading to considerable cost savings.”
Cost Efficiency Report by A2MAC1
German engineering firm A2MAC1 analyzed Lucid’s data. The report highlighted several cost efficiencies. Lucid’s drive unit, costing $1,911 to manufacture, was cheaper than two of three competitors. Despite being more powerful and lighter, Lucid’s drive unit was nearly as cost-effective as Competitor A, likely Tesla, which costs $1,791.
Regarding batteries, Lucid’s batteries, when normalized for size (128 kWh), were cheaper than two competitors. Their efficiency led to even greater cost savings when compared to competitors’ range.
Financial Performance Raises Concerns
Despite these cost efficiencies, investors remain cautious. Lucid reported a $790 million loss in Q2, translating to nearly $330,000 per unit delivered. Rawlinson specified that these figures relate only to powertrain costs, including electric motors, drive units, and batteries.
Investor skepticism persists. Lucid’s stock has declined nearly 19% in 2024. The market is waiting to see if Lucid’s cost-saving promises translate into profitability.
Sales Milestone Achieved
On a positive note, Lucid reached a new sales milestone. By August 31, 2024, the company had delivered more vehicles than in all of 2023, which saw 6,001 deliveries. Although Rawlinson did not provide exact figures, he confirmed that deliveries surpassed 6,000 units.
New Models and Market Expansion
The increase in deliveries is partly due to the launch of lower-cost versions of the Lucid Air sedan. Rawlinson is optimistic that the Gravity SUV will further boost these numbers. The base model is expected to be priced around $80,000, qualifying for the federal EV tax credit.
Lucid Motors’ Gravity SUV to Feature Tesla’s NACS Charging Inlet
The Gravity SUV by Lucid Motors will include Tesla’s North American Charging Standard (NACS) inlet. This feature provides access to Tesla’s extensive Supercharger network, enhancing the vehicle’s appeal. Preorders for the Gravity SUV have not yet opened but will be available soon.
Upcoming Midsize SUV: The Atlas Drive Unit
Looking ahead, Lucid is excited about its upcoming midsize SUV, which is unnamed at this time. This vehicle will be powered by the newly revealed Atlas drive unit. Expected to cost around $50,000, the midsize SUV is slated for release in 2026.
Rawlinson described the Atlas unit as smaller, more efficient, and cheaper to manufacture than current drive units. The Atlas may also be used in more affordable Air sedans and Gravity SUVs.
Multiple Midsize Vehicles Planned
Rawlinson also hinted at multiple midsize vehicles, rather than just one. These vehicles will compete with the Tesla Model 3 and Model Y, featuring Lucid’s advanced technology. He believes Lucid’s midsize vehicles will offer greater range and cost-effectiveness compared to the Model Y.
“There’s not just one midsized vehicle, there’s a plural. I’ve not disclosed how many based upon the midsized platform, but I mean that is going to take on the Tesla Model 3, Model Y — bestselling car in the world — but it’s going to have Lucid advanced technology.”
Long-Term Vision for Lucid
Rawlinson is confident in Lucid’s future, despite current market skepticism. He compared Lucid’s strategy to that of Tesla and Amazon, viewing it as a long-term investment. The company’s largest investor, Saudi Arabia’s Public Investment Fund (PIF), shares this long-term commitment.
“My view is [Lucid] is a long-term play,” Rawlinson concluded. “We have a strategy similar to Tesla and Amazon.”
Lucid Group Statistics
Lucid Group currently has a market capitalization of $7.94 billion, with an enterprise value of $7.87 billion. The company’s next earnings report is scheduled for November 5, 2024, after market close.
The company has 2.32 billion shares outstanding, reflecting a 28.91% increase over the past year. Insider ownership stands at 2.02%, while institutional ownership is 11.91%. The current float is 896.94 million shares.
Valuation Ratios and Financial Efficiency
Lucid Group’s price-to-sales (PS) ratio is 11.90, with a forward PS ratio of 7.80. The price-to-book (PB) ratio is 2.28. The company’s financial efficiency ratios are concerning, with a return on equity (ROE) of -51.52% and a return on invested capital (ROIC) of -25.04%.
Balance Sheet and Cash Flow
Lucid’s balance sheet shows $3.22 billion in cash and $2.42 billion in debt, resulting in a net cash position of $800.43 million, or $0.35 per share. The company’s working capital is $2.99 billion.
Operating cash flow over the past year was -$2.01 billion, with capital expenditures totaling -$897.67 million. This results in a free cash flow of -$2.91 billion.
Stock Price Statistics and Analyst Forecast
Lucid’s stock has fallen by 41.37% over the past 52 weeks, with a beta of 1.06, indicating volatility similar to the market average. The average price target for the stock is $3.55, representing a 3.68% increase from the current price. The consensus rating among analysts is “Hold.”
This comprehensive update from Lucid Motors highlights their strategic advancements in EV technology and vehicle offerings. While cost efficiencies are noted, the company faces challenges in achieving profitability and convincing skeptical investors. As Lucid rolls out new models and continues to innovate, its long-term vision remains focused on transforming the EV market.
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Source: Yahoo Finance
