Only days after reducing its reservation total from 34,000 to 28,000, EV brand Lucid revealed plummeting Q4 revenue. The manufacturer earned $257.7 million between October and January or about $45.3 million less than it had hoped to make in a quarter.
Yet only after lowering its initial objective of 20,000 did the corporation reach its 2022 goal of 7,000 by an extra 180 units. The manufacturer plans to produce 10,000 to 14,000 units in 2023, and CEO Peter Rawlinson has pledged to “amplify sales and marketing activities” in order to reach more customers.
Lucid’s quarterly sales are up significantly from the same quarter last year when it had only recently begun production of the Air vehicle and earned $26.4 million. The company’s bottom line also improved, narrowing from the 64-cent loss per share it reported in the prior-year quarter.
At the time of its most recent update on November 7, Lucid reported having “over 34,000” reservations for their vehicles. As of February 21, Lucid reported having “more than 28,000” reservations.
In late January, market rumors of a takeover by Lucid’s main investor, Saudi Arabia’s Public Investment Fund, caused its shares to reach a six-month high. Analysts predicted the stock would decline again following year-to-date short covering since Lucid’s entire addressable market is investors’ top concern.
CEO of asset management EMG Advisors, Will McDonough, said: “Lucid’s profits, unfortunately, reveal that it’s a business that’s in the public markets earlier than it should be.”
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