Electrical car (EV) maker Lucid Group reported first-quarter income effectively under Wall Road estimates on Monday and forecast 2023 manufacturing on the decrease finish of its earlier steering as a value struggle sparked by Tesla damage gross sales.
Shares within the maker of the Air luxurious sedan dropped about 9% in prolonged buying and selling.
Tesla’s transfer to chop costs and enhance quantity, a technique which CEO Elon Musk stated is a part of the EV maker’s recession playbook, in addition to lower-priced electrical fashions launched by conventional automakers have damage startups reminiscent of Lucid and Rivian Automotive.
Lucid, confronted with mounting losses, has largely shied away from reducing costs aside from a reduction of $7,500 on sure variants of its Air luxurious sedan purchased earlier than March 31.
As a substitute, it stated late March it might lay off 18% of its workforce, about 1,300 staff, throughout the group as a part of a restructuring plan to rein in prices.
The corporate reported quarterly income of $149.4 million, in contrast with analysts’ common estimate of $209.9 million, in accordance with Refinitiv. It final month reported first-quarter manufacturing and supply figures decrease than within the previous three months.
“The income was really the weakest that is been for the reason that second quarter of final yr, so there is a large miss on the highest line,” stated Garrett Nelson, analyst at CFRA Analysis. “This might be a sign that this pricing struggle is having a direct affect on their outcomes.”
Lucid CEO Peter Rawlinson stated in an announcement on Monday the corporate was on monitor to provide over 10,000 automobiles in 2023, in contrast with an earlier forecast for 10,000 to 14,000 items this yr.
“It appears to be a refined shift within the steering,” Nelson stated.
The primary quarter web loss widened to $779.5 million from $604.6 million a yr earlier, whereas money and money equivalents fell to $900 million on the finish of the primary quarter from $1.74 billion within the fourth quarter.
Chief Monetary Officer Sherry Home stated the corporate had $4.1 billion in liquidity, sufficient to fund the posh EV maker at the very least into the second quarter of subsequent yr.
Lucid stated in a separate regulatory submitting on Monday that it might elevate as much as $7.4 billion via gross sales of inventory, debt securities, warrants or different choices every so often.
The EV maker is about to unveil its Gravity sport utility car later this yr forward of its launch in 2024.