Electric vehicle manufacturer Lucid Group announced Tuesday that it experienced its most significant revenue shortfall in more than four years during the first quarter, with earnings falling 36% short of Wall Street expectations due to supplier complications that interrupted February deliveries of its Gravity SUV model.
Following the announcement, the company’s stock price dropped approximately 3% during after-hours trading.
The California-based automaker reported quarterly earnings of $282.5 million, substantially below the $440.4 million that financial analysts had projected, based on LSEG data.
During the three-month period, the electric vehicle company manufactured 5,500 cars, representing a 149% increase compared to the same period last year. However, actual deliveries totaled just 3,093 vehicles after problems with a seat supplier limited February shipments.
According to Lucid, the issue involving second-row seating in their Gravity SUV models has been fixed, and March sales showed a 14% improvement over the previous year.
Company officials stated they are adjusting manufacturing levels to match customer demand while addressing higher-than-normal inventory amounts.
The automaker is counting on its Gravity SUV and an upcoming mid-size vehicle platform to boost sales growth, along with collaborations with Uber and autonomous driving company Nuro to launch a robotaxi service this year.
The Newark, California-headquartered business is preparing to broaden its vehicle offerings with a more budget-friendly mid-size platform later this year to attract a wider range of customers.
Lucid introduced its Gravity SUV model in late 2024, representing the company’s first expansion beyond its primary Air luxury sedan line that has been its main product since starting operations.
The premium electric vehicle manufacturer has also encountered wider supply chain challenges, including shortages of essential materials like aluminum and computer chips that have slowed production increases.
Last month, the company appointed former Schindler executive Silvio Napoli as its new chief executive officer, more than a year after Peter Rawlinson left the position.
With financial backing from Saudi Arabia’s Public Investment Fund, the company is working to improve its financial position and support business expansion. In April, it secured approximately $1.05 billion through a combination of stock sales and convertible preferred shares, while also extending a credit agreement with the fund.
Lucid recorded a net loss of roughly $1.13 billion during the quarter, exceeding the $731 million loss from the same period the previous year.
The company finished March with about $3.2 billion in available funds, which would increase to approximately $4.7 billion after accounting for the recent capital fundraising.
