Lucid Group Reservations Surpass 17,000

Lucid Group's Strong Start as a Publicly Traded Company

Following its initial public offering, Lucid Group has experienced significant growth, evidenced by a rising stock price and the commencement of customer vehicle deliveries. The company is actively pursuing a leading position within the expanding luxury electric vehicle (EV) market.

From Atieva to a Public EV Manufacturer

Lucid Group’s journey began in 2007 as Atieva. A strategic shift occurred as the company redirected its efforts from the development of EV battery and powertrain technologies to the production of high-end automobiles. This culminated in the company becoming publicly listed in July through a merger with Churchill Capital IV Corp., a highly anticipated event in the EV special purpose acquisition company (SPAC) sector.

Stock Performance and Initial Deliveries

Over the past month, the stock of this new EV manufacturer has nearly doubled in value. It rose from approximately $27 per share on October 27 to $44.88 at Monday’s market close. This increase is largely attributed to the start of deliveries – exceeding two dozen – of the $169,000 Air Dream Edition sedan in late October.

Prior to these deliveries, the Air Dream Edition had already achieved recognition for possessing the longest EPA-certified range of any EV currently available, exceeding 520 miles. The Lucid Grand Touring model also received a commendable rating of 516 miles.

Reservation Growth and Revenue Projections

During the third quarter, customer reservations climbed to 13,000, translating to approximately $1.3 billion in potential revenue. Since the quarter concluded, this number has further increased to over 17,000 reservations, a substantial rise from the 11,000 recorded in July.

The majority of these reservations originate from customers within the United States. However, Saudi Arabia represents the second-largest source of orders, according to Lucid Group CEO Peter Rawlinson. Significant financial backing from Saudi Arabia’s sovereign wealth fund has been instrumental, and the fund remains the automaker’s largest shareholder.

Production Capacity Goals

Mr. Rawlinson expressed confidence in the company’s ability to achieve a production capacity of 20,000 vehicles in the coming year. Looking further ahead, Lucid aims for an even more ambitious target of 500,000 units annually by the end of the decade.

The initial rollout will involve delivering 520 Dream Editions, followed by the Grand Touring, Touring, and Air Pure models (starting around $77,000) in the next year.

Manufacturing Expansion in Arizona

Lucid’s vehicles are currently manufactured at its facility in Casa Grande, Arizona. Plans are underway to expand this facility by approximately 2.85 million square feet. The goal is to increase annual production capacity to 90,000 vehicles by the end of 2023.

This expanded capacity will accommodate the production of the upcoming “Project Gravity” SUV, with a potential overall output reaching 365,000 units.

Project Gravity SUV

Executives have confirmed that Project Gravity is on schedule for production in late 2023. Rawlinson indicated that the SUV is poised to be as groundbreaking in the SUV segment as the Air is in the luxury sedan market.

Financial Position

The company currently holds approximately $4.8 billion in cash, including $4.4 billion from the SPAC merger and private investment in public equity (PIPE) deal, alongside existing cash reserves. CFO Sherry House clarified that while production costs are reflected in the current quarter’s earnings, vehicle revenue will be recognized in the subsequent quarter due to the timing of customer deliveries, which began on October 30.

Industry Recognition

Lucid Air was recently named MotorTrend’s 2022 Car of the Year. Rawlinson noted the rarity of a new brand achieving this honor, referencing Tesla’s Model S win in 2012. Prior to joining Lucid, Rawlinson served as a vehicle engineer for the Model S, beginning in 2009.