Lucid Motors cut its production forecast to “over 10,000” this year from its previous estimate of 10,000 to 14,000 and posted a first-quarter net loss of $780 million as it burns through cash amid waning demand.
Despite the disappointing numbers, which sent its stock price down nearly 9 percent in extended trading, CEO Peter Rawlinson said the automaker is seeing success in raising brand awareness in an effort to find more buyers for its Air sedan, currently its only vehicle.
“We’re seeing some early wins,” Rawlinson said of the automaker’s increased focus on marketing. “The number of test drives has nearly doubled in the first quarter from the fourth quarter of last year.”
Rawlinson announced on the company’s first-quarter earnings call Monday that Andrea Soriani is the new head of marketing for Lucid.
Soriani previously held marketing roles at TAG Heuer and Maserati of North America.
Rawlinson also explained why Lucid’s production and delivery numbers have been so far below its original estimates in 2021 in response to an investor question presented on the call.
He said the shortfall is due to supply-chain disruptions that no one could have foreseen, which limited production capacity. And more recently, he added, the automaker is suffering from higher interest rates and economic uncertainly that are negatively affecting demand.
“These are factors that are difficult to predict,” Rawlinson said.
Lucid is still in the early stages of raising brand awareness and converting EV shoppers to Air owners.
“We’re still early on in our customer growth stage of innovators and early adopters,” Rawlinson said. New marketing efforts will draw in larger segments of shoppers and fuel sales growth.
Lucid said it expects to present its second vehicle, the Gravity crossover, later this year and to start accepting reservations. Production of the three-row crossover is on schedule to start in 2024, the company said.
CFO Sherry House said Lucid is not making public its order backlog. But she did say that the automaker expects deliveries to increase in coming quarters, with the fourth quarter being the best for sales this year.
Rawlinson said that his focus as CEO has shifted from working out manufacturing bottlenecks to drumming up sales. That includes fresh efforts to provide test drives across the country.
Last month, the EV maker began a 42-city tour with Air models for display at pop-up stores.
The Dream Ahead Tour started mid-April with four stops in Florida and will finish in mid-November in Dallas, the company said. The pop-ups will offer test drives and information about Lucid’s proprietary EV technologies. The Air sedan holds the U.S. record for EV range and efficiency, according to the EPA.
“Consumers across the United States will have the opportunity to experience and drive various Lucid Air models, including the Lucid Air Grand Touring, offering 819 horsepower and an EPA-estimated range of 516 miles on a single charge,” Lucid said in a press release. The Grand Touring starts at $139,650 with shipping.
As part of first-quarter financial results, Lucid reported revenue of $149 million, compared with analysts’ average estimate of $210 million, Reuters said.
The automaker’s net loss widened to $780 million from $605 million a year earlier. Lucid said it has $4.1 billion in liquidity, enough to fund it into the second quarter of next year.
Lucid has been burning through cash as it struggles to find buyers for the Air, which starts at $89,050 with shipping for the base Pure trim and reaches $250,650 with shipping for the top-trim Sapphire coming later this year.
The industry newcomer delivered just 1,406 vehicles in the January-March period, well shy of the pace needed to meet its full-year forecast of 10,000 Air sedans from its Arizona factory.
