Peter Rawlinson needs individuals to know that he is working onerous.
The Lucid Group (LCID) CEO drove that time dwelling in the course of the electrical automobile maker’s fourth-quarter earnings name.
Rawlinson was requested if he meant to take a wage lower to cut back losses or plan to purchase again shares to enhance inventory well being.
He mentioned that he acquired a one-time CEO inventory grant in 2021 and that “I feel there’s an enormous misperception that this one-time grant was acquired as a wage and in some way we replicate it as my wage sooner or later.”
“In actual fact, in 2023, at my request, I didn’t obtain a bonus for 2022, nor did I obtain any additional fairness grants in ’22 or ’23,” he mentioned.
“My promise is to proceed to work tirelessly, day and evening, to drive model consciousness, to ship extra vehicles, to enroll extra expertise licensing and entry agreements, to drive down prices, and to deliver the Gravity and midsized platform to market,” Rawlinson added, in line with a transcript of the decision.
Report: The electrical automobile slowdown is actual
Lucid reported fourth-quarter earnings of 29 cents per share on $157.2 million in gross sales. Analysts surveyed by FactSet anticipated the corporate to submit a lack of 30 cents a share on $180 million in income.
A yr in the past, Lucid reported a lack of 28 cents a share on $257.7 million in gross sales.
Associated: Analysts revamp Rivian inventory value targets after earnings
For 2024, the corporate forecasts producing 9,000 automobiles, versus estimates of twenty-two,594, in line with the 5 analysts polled by Seen Alpha. The corporate made 8,428 automobiles in 2023.
Like its EV rival start-up Rivian (RIVN) , which additionally reported quarterly outcomes, Lucid noticed its shares nosedive after buyers reacted to the numbers.
Keep in mind that 2024 is forecast to be the “Yr of Extra.”
That is how the Cox Automotive Financial and Business Insights workforce described 2024 for electrical automobiles, as in additional new merchandise, incentives, stock, leasing, and infrastructure – “all of the extra will mix to push EV gross sales increased within the yr forward.”
“Practically all automakers ought to see their share of EV gross sales enhance within the yr forward, and people not at present within the sport will soar in,” the Cox report mentioned.
That sounds fairly encouraging, however EV makers responding to slipping gross sales by slashing costs and chopping again on manufacturing are seeing less–not extra.
The research acknowledged that “the oft-reported slowdown is actual,” noting the fourth-quarter EV gross sales elevated yr over yr by 40% – “a powerful consequence by any measure, besides when in comparison with the expansion the trade noticed in earlier quarters.”
Nonetheless, the report mentioned, “The momentum is there and isn’t going away.”
Throughout Lucid’s earnings convention name, Rawlison listed a number of the firm’s accolades, reminiscent of Automobile and Driver 10 Greatest Record for 2024, The 2023 World Luxurious Automobile of the Yr, and the 2022 Motor Pattern Automobile of the Yr.
CEO acknowledges challenges
“I can’t consider another firm that has gotten this far this quick,” he mentioned, in line with a transcript of the decision. “Our superior expertise, design, and efficiency have repeatedly been acknowledged.”
Rawlinson additionally acknowledged that the corporate additionally had some challenges, together with “the macroeconomic and better rate of interest surroundings impacted primarily on this market.”
Extra electrical automobiles:
- Elon Musk’s Tesla delivers harsh warning to staff
- Elon Musk’s newest Tesla announcement may shake up your complete EV trade
- Tesla unveils newest transfer to offset demand hunch as inventory extends slide
Lucid is planning to start out producing a mid-size automotive late in 2026 to draw a broader buyer base after its Gravity SUV goes into manufacturing later this yr.
“I’m assured that the Lucid Gravity will redefine the electrical SUV section with unimaginable vary, superior effectivity, quick charging pace, and inside area that it’s a must to see to imagine,” he advised analysts.
“Will probably be not like something in its class, and will probably be large for Lucid,” Rawlinson added.
Financial institution of America analyst John Murphy lower his value goal for Lucid to $4.50 from $7.
“The corporate reiterates that there’s sufficient liquidity to proceed with the present initiatives not less than till 2025, however we would count on important capital might be wanted to fund the House program,” Murphy mentioned.
The analyst added that he sees dangers from softer demand and expects the corporate might want to elevate extra capital, “however these factors are balanced with our view that Lucid has class-leading powertrain tech mixed with enticing merchandise.”
Cantor Fitzgerald downgraded Lucid to underweight from impartial with a value goal of $4, down from $6.
The agency cited the corporate’s “persistently excessive” unfavorable gross margins, lower-than-expected annual manufacturing steerage, and decrease demand for the downgrade.
Cantor lower estimates to mirror lowered automobile manufacturing and deliveries and decrease anticipated promoting costs. The agency mentioned Lucid continues to decrease automobile costs to stay aggressive.
Associated: Veteran fund supervisor picks favourite shares for 2024
