Lucid earnings preview: Production, ownership structure in focus

When California-based EV-maker Lucid (LCID) announces Q4 financial results after the bell on Wednesday, production guidance and questions of its future ownership structure will likely dominate the headlines.

Wall Street is expecting Lucid to report the following top and bottom line figures after the bell:

That revenue figure would represent a rather sizable 61% jump from Q3.

From a profitability perspective, analysts are also watching for an adjusted net income loss of $670.14 million and EBITDA loss of $579.86 million.

On the demand front, In the most recent quarter Lucid announced it had 34,000 preorders for its Air sedan, and investors will be keenly watching to see if that figure is climbing higher. Only a few weeks back Lucid announced its own $7,500 “credit” for certain Air sedans as a way to boost sales when its sole product doesn’t qualify for the $7,500 federal EV tax credit. Management may address whether this investment lifted pre-orders in the past few weeks.

Of note will be Lucid’s latest production forecast for 2023. Last month Lucid announced it produced 3,493 vehicles for the quarter and 7,180 for the year, topping its forecast of 6,000-7,000 vehicles for the year, however that forecast had been slashed multiple times last year. Lucid’s original forecast for 2022 had them building 20,000 vehicles for the year.

Another big question that will likely be addressed on the earnings call is the future of the company’s ownership structure, and its status as a public entity. Lucid’s stock shot up a month ago on speculation Saudi Arabia’s Public Investment Fund (PIF) would buy out the remainder of the company it doesn’t own and take it private. The PIF’s stake in Lucid sits at approximately 65%.

The Lucid/PIF partnership goes beyond a financial one, however as last year Lucid announced it would be building a factory in Saudi Arabia, with a planned annual capacity of 155,000 EVs a year.

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Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and on Instagram.

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