Lucid Group, Inc. (LCID)·Q1 2025 Earnings Summary

Executive Summary

• Q1 revenue was $235.0M on 3,109 deliveries (fifth consecutive quarterly delivery record); GAAP EPS was $(0.24), non‑GAAP EPS $(0.20). Gross margin improved year/year to -97.2% (from -134.3% in Q1’24) on higher regulatory credits and cost actions, though still deeply negative .
• Liquidity stood at ~$5.76B (cash/investments ~$4.56B) after closing $1.1B 2030 converts and repurchasing ~$1.05B of 2026 notes; management guides runway into H2’26 .
• 2025 production guidance reaffirmed at ~20,000 vehicles; CapEx guided to ~$1.4B for 2025 (AMP‑1, AMP‑2, retail). Tariff headwind widened to an 8%–15% gross margin impact vs 7%–12% prior .
• Stock reaction catalysts: Gravity SUV ramp and higher ASP mix; progress on technology licensing; supply chain localization (e.g., graphite), and clarity on tariff regime. Offsets include continued negative gross margins, elevated cash burn, and near‑term Gravity ramp frictions .

What Went Well and What Went Wrong

What Went Well

• Record deliveries and higher revenue: 3,109 deliveries (+58% y/y) and $235.0M revenue (+36% y/y); CEO highlighted “continued momentum” and “another delivery record” .
• Margin progress vs prior year and sequentially ex one‑time: CFO cited GAAP gross margin of -97.2%, ahead of February directional guidance, with >1,000 bps sequential improvement after adjusting for a Q4 supplier recovery .
• Strategic/financial positioning improved: $1.1B converts closed; ~$1.05B 2026 converts repurchased; total liquidity ~$5.76B; tech and R&D optionality via KAUST supercomputing partnership .

Management quotes:

• “We’re executing against our near‑term goals — driving volume, improving margins, and operating with rigor.” — CFO Taoufiq Boussaid .
• “Lucid Gravity…establishes a new era in electric SUV engineering.” — CEO Marc Winterhoff, citing media reactions and order interest .

What Went Wrong

• Profitability still deeply negative: GAAP gross margin -97.2%; Adjusted EBITDA $(563)M; free cash flow $(590)M in Q1 .
• Gravity ramp frictions: software and HUD supplier issues slowed studio test cars; company decoupled the HUD option to continue deliveries; management is resolving bottlenecks in Q2 .
• Tariff/macro headwinds intensified: potential 2025 GM headwind now 8%–15% (from 7%–12% prior); uncertainty on policy and consumer impact persists .

Financial Results

P&L vs prior quarters and estimates

Notes: Q1 revenue +36% y/y per CFO; GAAP GM improved vs -134.3% in Q1’24 per CFO .

KPIs and balance sheet/cash metrics

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• Strategic focus: “We’re executing against our near‑term goals — driving volume, improving margins, and operating with rigor…positioning ourselves for long‑term value creation…with strong liquidity and breakthrough products.” — CFO .
• Gravity ramp: “Lucid Gravity is…a game changer…more than three‑quarters of orders [are] new to Lucid.” — CEO .
• Tariffs/localization: “We see the potential [GM] impact in the range of 8% to 15%…we’re working to mitigate…including localizing supply (e.g., graphite partners) and flexibility in rare earth content.” — CFO/CEO .
• Financial runway: “Liquidity…provides us runway into the second half of 2026.” — CFO .
• Technology access/licensing: “OEMs are starting to see our leading EV technology as complementary…Aston Martin was our first OEM contract…active discussions with others.” — CEO .

Q&A Highlights

• Gravity demand/ASPs: Order inflow “way above” Air GT; ASPs expected to increase in 2H’25 as Gravity mix rises .
• Midsize timeline: SOP late 2026; acceleration not feasible given sourcing/tariff uncertainty; focus is on “getting it right” .
• Gravity ramp issues: Software and HUD supplier constraints addressed by making HUD optional; rolling out studio/test drive cars as quality meets standards .
• Tech licensing/component supply: Open to being a drivetrain/powertrain supplier where capacity allows; added Arizona assets expand options .
• Profitability path: Scale is key; Gravity helps, but midsize platform is the bigger lever for fixed‑cost absorption .

Estimates Context

• We attempted to retrieve S&P Global consensus for Q1’25 revenue and EPS and forward periods, but no data was returned by the tool; therefore, consensus comparisons are not available. Estimates may need to adjust upward on regulatory credits/gross margin trajectory, and for higher ASP mix as Gravity ramps, while tariff headwinds (8%–15% GM impact) likely temper margin expectations .
• Note: S&P Global consensus values were unavailable via GetEstimates at this time; thus “Consensus” cells are marked N/A.

Key Takeaways for Investors

• Delivery momentum intact; revenue +36% y/y with improving gross margin vs prior year, driven by regulatory credits and cost actions, though profitability remains far from breakeven .
• Reaffirmed ~20k 2025 production and ~$1.4B CapEx provides operational guardrails; expect higher SG&A in Q2 as marketing ramps and SBC reversal normalizes .
• Gravity is the 2025 mix and ASP catalyst; watch pace of resolving ramp bottlenecks (HUD, software) and deployment of studio/test fleets .
• Tariff headwinds widened; management countering with localization (graphite agreements, future Panasonic Kansas cell supply) and vertical integration flexibility on rare earths .
• Balance sheet fortified: $1.1B 2030 converts and partial 2026 retirements extend runway into H2’26; monitor cash burn/FCF trajectory and incremental funding options in Saudi Arabia .
• Strategic optionality: KAUST partnership accelerates ADAS/AV/AI development; active technology licensing/OEM discussions could create non‑vehicle revenue streams .
• Near‑term trading lens: Stock likely sensitive to Gravity ramp cadence, tariff/policy developments, regulatory credits sustainability, and any technology licensing announcements.

Citations

• Q1’25 press release and financials:
• Q1’25 8‑K (Item 2.02) and exhibits:
• Q1’25 earnings call transcript (remarks and Q&A):
• Q4’24 press release and 8‑K:
• Q3’24 press release:
• Financing and liquidity events:
• Supply chain localization (graphite):

S&P Global disclaimer: Consensus values were unavailable via S&P Global at the time of retrieval; table “Consensus” cells marked N/A. Values retrieved from S&P Global would be indicated with an asterisk if provided.