Lucid Group 2025 Q1 Earnings Misses Targets as Net Loss Narrows 46%
Wednesday, May 7, 2025 7:26 am ET
41min read LCID Trend
Revenue
The total revenue of lucid group increased by 36.1% to $235.05 million in 2025 Q1, up from $172.74 million in 2024 Q1.
Earnings/Net Income
Lucid Group narrowed its losses to $0.24 per share in 2025 Q1 from a loss of $0.30 per share in 2024 Q1, a 20.0% improvement. The net loss decreased by 46.2% to $-366.17 million compared to $-680.86 million in 2024 Q1. Despite improvements, the EPS remained below expectations.
Post-Earnings Price Action Review
Buying lucid Group shares after a revenue increase and holding for 30 days has historically resulted in underperformance. Over the past five years, this strategy yielded a return of -28.98%, significantly lagging behind the benchmark return of 20.92%. The 49.91% excess return deficit and a compound annual growth rate of -8.77% highlight substantial losses. Furthermore, the strategy exhibited a high maximum drawdown of -37.31%, and a Sharpe ratio of -0.55 indicates considerable risk alongside negative returns, suggesting that investors should approach this strategy with caution.
CEO Commentary
Marc Winterhoff, Interim Chief Executive Officer, expressed gratitude to employees and stakeholders, highlighting significant business performance with 3,109 vehicle deliveries, a 58% year-over-year increase, marking the fifth consecutive quarter of record deliveries. He noted challenges in Saudi Arabia were resolved, contributing to a strong demand for the Lucid Air, which remains a best-seller in its segment. Winterhoff emphasized the company's commitment to strategic marketing initiatives and partnerships, particularly regarding the Lucid Gravity, which he described as a “game changer.” He conveyed an optimistic outlook, stating, "We are here to rewrite the EV playbook," reflecting confidence in Lucid's future positioning and innovation.
Guidance
Lucid Group expects to produce approximately 20,000 vehicles in 2025, maintaining a total revenue target of $235 million. The company projects capital expenditures of approximately $1.4 billion, focusing on AMP-1, AMP-2, and retail infrastructure investments. Despite a challenging market environment, the guidance reflects confidence in overcoming uncertainties and achieving growth, with anticipated improvements in average selling prices as the Gravity model gains traction in the latter half of the year.
Additional News
In recent weeks, Lucid Group has been the subject of several noteworthy developments apart from its earnings report. The company continues to strengthen its strategic relationship with Saudi Arabia, especially with the Saudi Public Investment Fund being a major backer. This partnership underscores Lucid's focus on expanding its international market reach. Furthermore, Lucid has been navigating potential regulatory changes under the Trump administration, which could impact the EV tax credit landscape. Additionally, the company is facing potential new tariffs, which it is actively assessing alongside supply chain and macroeconomic uncertainties. These strategic considerations are crucial as Lucid aims to scale production and maintain its competitive edge in the electric vehicle market.
Ask Aime: What's next for Lucid after Q1 earnings?
