Lucid Group (NASDAQ: LCID) missed Wall Street estimates on deliveries for the third quarter of 2023, and shares responded on Tuesday morning by dropping over 3 percent by 10:20 AM on the East Coast.
Lucid said in a press release on Tuesday morning that it delivered 1,457 units of its Air sedan, its first all-electric vehicle, to customers in the third quarter. Wall Street expected 2,000 vehicles, according to FactSet, which polls analysts on their expectations.
Lucid also said it produced 1,550 vehicles during the quarter, and over 700 additional vehicles were in transit to Saudi Arabia for final assembly.
The company said this year that its goal was to produce more than 10,000 units of the Air electric vehicle this year, but through the first eight months of the year, Automotive News estimates had placed production figures at roughly 4,267 units through August.
This is the exact number of deliveries the company has reported through the first three quarters. It has produced 6,037 units through Q3.
It did not provide an update on this goal in its production and delivery release. It provided the 10,000 unit goal in May and reiterated it in August.
Bloomberg reported earlier this year that Lucid was losing roughly $338,000 for every vehicle it produces in 2023. The company is a long way from scaling its production to a point where it can turn a profit.
Lucid said during its Q2 earnings call that order volumes increased toward the end of July, and production at the AMP-2 facility is expected to produce 155,000 units per year.
If demand is there, production certainly is not, and Lucid is still working through the early growing pains of producing electric vehicles.
Lucid will shed more light on the production and demand situation during its Q3 Earnings Call on November 7, 2023, at 2:30 P.M. PT.
Disclosure: Joey Klender is not an LCID shareholder.
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