North America

Middle East

Other International

Total Revenue

b1418a21a331f895771636c9e845f4197ec9749691047740d11121c861f890b3

Total Revenue (USD, thousands)

Cost of Goods Sold (COGS) (USD, thousands)

SG&A (USD, thousands)

R&D (USD, thousands)

D&A (USD, thousands)

Interest Expense (USD, thousands)

Operating Income (EBIT) (USD, thousands)

Net Income (USD, thousands)

EPS - Basic (USD, per share)

EPS - Diluted (USD, per share)

f645932b7382167da33661cf9e011ffaf00e98cefe073f9b2104777f4c61ba53

Adjustments for Non-Cash Items (USD, thousands)

Stock-Based Compensation (USD, thousands)

Changes in Working Capital (USD, thousands)

Capital Expenditures (CapEx) (USD, thousands)

Proceeds from / Repayments of Debt (USD, thousands)

Share Repurchases (USD, thousands)

Dividend Payments (USD, thousands)

Net Change in Cash (USD, thousands)

7e94de60db6cf1839aef68489ce311be67e795ddabdc5cc215f940ec207f9b25

Current Assets (USD, thousands)

Cash and Cash Equivalents (USD, thousands)

Accounts Receivable (USD, thousands)

Inventory (USD, thousands)

Non-Current Assets (USD, thousands)

Property, Plant, and Equipment (PP&E) (USD, thousands)

Goodwill (USD, thousands)

Intangible Assets (USD, thousands)

Current Liabilities (USD, thousands)

Accounts Payable (USD, thousands)

Short-term Debt (USD, thousands)

Accrued Expenses (USD, thousands)

Non-Current Liabilities (USD, thousands)

Long-term Debt (USD, thousands)

Lease Liabilities (USD, thousands)

Deferred Tax Liabilities (USD, thousands)

Shareholders' Equity (USD, thousands)

Retained Earnings (USD, thousands)

Common Stock (USD, thousands)

Additional Paid-in Capital (USD, thousands)

82b54e2bb4d89f2edadf2cb25d62b9459352ab828df118d421ef5b3773adb36b

Lucid Group, Inc. (LCID) is a company specializing in the design, engineering, and manufacturing of high-performance electric vehicles (EVs) and advanced powertrain components. The company is committed to innovation in the EV industry, focusing on delivering luxury electric vehicles and cutting-edge technology. In addition to vehicle sales, Lucid engages in research and development, manufacturing, and retail expansion to support its global operations.

1. **Vehicle Sales** - Sells high-performance electric vehicles, including the Lucid Air, with revenue recognized upon delivery to customers.  **[0001628280-24-046263_lcid-20240930.htm:22]** **[0001628280-24-034730_lcid-20240630.htm:16]** **[0001628280-24-046263_lcid-20240930.htm:17]** **[0001628280-23-037354_lcid-20230930.htm:13]** **[0001628280-24-020633_lcid-20240331.htm:12]** **[0001628280-24-007209_lcid-20231231.htm:175]** **[0001628280-23-027785_lcid-20230630.htm:13]** **[0001628280-23-016405_lcid-20230331.htm:11]**   
2. **Non-Warranty After-Sales Vehicle Services and Parts** - Provides vehicle services and parts not covered under warranty.  **[0001628280-24-046263_lcid-20240930.htm:22]**   
3. **Powertrain Kits and Retail Merchandise** - Offers advanced powertrain kits and branded retail merchandise.  **[0001628280-24-046263_lcid-20240930.htm:22]**   
4. **Regulatory Credits** - Generates revenue through the sale of regulatory credits.  **[0001628280-24-046263_lcid-20240930.htm:22]**   
5. **Vehicle Operating Lease Revenue** - Includes sales of vehicles with repurchase obligations, accounted for as operating leases, though this revenue is not material.  **[0001628280-24-046263_lcid-20240930.htm:22]**

350b2e4700d69240f1b64491125692bb989144d8e957e939a6fd60188377d1e0

| Name              | Position                                                                 | Start Date         | Short Bio                                                                                                                                                                                                                     |
|-------------------|--------------------------------------------------------------------------|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Peter Rawlinson   | Chief Executive Officer (CEO) and Chief Technology Officer (CTO)        | April 2019         | Peter Rawlinson has served as CEO and CTO since **April 2019**. Previously, he was VP of Vehicle Engineering and Chief Engineer of the Model S at Tesla, and held senior roles at Corus Automotive, Lotus, and Jaguar.  **[0001104659-24-051463_tm2333393d2_def14a.htm:17]**    |
| Gagan Dhingra     | Interim Chief Financial Officer (CFO) and Principal Accounting Officer  | December 11, 2023  | Gagan Dhingra became Interim CFO on **December 11, 2023**, after joining Lucid in **December 2021** as VP of Accounting. He has 20+ years of experience, including roles at Anaplan, Seagate, McKesson, and Ernst & Young.  **[0000950103-23-017373_dp203868_8k.htm:1]**  |
| Marc Winterhoff   | Chief Operating Officer (COO)                                           | December 4, 2023   | Marc Winterhoff started as COO on **December 4, 2023**. He was previously a partner at Roland Berger, focusing on operational leadership for automotive manufacturers. He holds a master's in engineering and management.  **[0001104659-23-117762_tm2330320d1_8k.htm:1]**   |
| Eric Bach         | Senior Vice President, Product and Chief Engineer                       | March 2021         | Eric Bach has been SVP, Product and Chief Engineer since **March 2021**. He joined Lucid in **2015** and previously worked at Tesla and Volkswagen in various engineering leadership roles.  **[0001104659-24-051463_tm2333393d2_def14a.htm:51]** **[0001104659-23-031532_tm232032d5_def14a.htm:53]** **[0001104659-23-028436_tm232032-d6_pre14a.htm:53]**                           |
| Michael Bell      | Senior Vice President, Digital                                          | February 2021      | Michael Bell has been SVP, Digital since **February 2021**, after consulting for Lucid starting in **August 2020**. He previously held leadership roles at Rivian, Intel, Palm, Apple, and others.  **[0001104659-24-051463_tm2333393d2_def14a.htm:52]** **[0001104659-23-031532_tm232032d5_def14a.htm:53]**                      |
| Derrick Carty     | Interim Head of Digital Organization, Vice President of Platform Software | June 2022 (VP), May 2024 (Interim Head) | Derrick Carty has been VP of Platform Software since **June 2022** and became Interim Head of Digital Organization in **May 2024**. He spent over two decades at Apple and holds a Computer Science degree from Stanford.  **[0001628280-24-020614_lcid-20240501.htm:2]** **[LCID_3386641_3]**  |

02cbb4288f04a8a94f53fa36d7ee413c63f4446481411c8ca41801c952cc49b6

1. Can you elaborate on the working capital requirements for next year as you ramp up production of the Lucid Gravity, and how do you plan to manage these needs given your current financial resources?
2. As you aim for the start of production of the Midsize vehicle in late 2026, what steps are necessary to ensure this ramp can proceed given your current financial position, and are there any milestones that need to be met to support it?
3. How should we think about the impact of the Gravity's production ramp on your gross margins over the next several quarters; will it initially be a headwind before achieving greater volume, and what is your outlook for margin improvement during this period?
4. With a significant portion of your engineering and powertrain teams already working on the Midsize vehicle, how are you allocating resources to balance the development of future products while ensuring the ongoing success and improvement of your current models like the Air and Gravity?
5. Given that the Lucid Gravity involves substantial differences from the Air's platform, how do you anticipate this will impact production costs and economies of scale, and how will it affect your strategy for achieving cost efficiencies across your product lineup?

820109d6afa0765c5b98e13e94e8dfa3e2f3dc68683a2a442ed8df3d4dbd2a2f

---

### **1. Q3 2024 Earnings Call**
- **Issued Period**: Q3 2024  
- **Guided Period**: FY 2024  

#### Guidance:
1. **Production Guidance**: Approximately **9,000 vehicles** for FY 2024.  **[LCID_3407106_4]** **[LCID_3407106_5]** **[LCID_3407106_1]**   
2. **Liquidity Guidance**: Total liquidity, including a $1.75 billion capital raise, expected to provide a **financial runway well into 2026**.  **[LCID_3407106_5]** **[LCID_3407106_1]**   
3. **Capital Expenditures (CapEx)**: Updated FY 2024 CapEx guidance to approximately **$1 billion**, down from $1.3 billion, reflecting deferrals into 2025 and cost-saving initiatives.  **[LCID_3407106_5]**   
4. **Gross Margin Outlook**: Expected to be **largely flat in Q4 2024** compared to Q3 2024.  **[LCID_3407106_4]**   
5. **Operating Expense Guidance**: Full-year FY 2024 operating expenses expected to **decrease as a percentage of revenue compared to FY 2023**.  **[LCID_3407106_4]**   
6. **Product Launch Timeline**:  
   - **Lucid Gravity**: Start of production scheduled for **late 2024**.  
   - **High-Volume Midsize Platform**: Start of production scheduled for **late 2026**.  **[LCID_3407106_5]**   

---

### **2. Q2 2024 Earnings Call**
- **Issued Period**: Q2 2024  
- **Guided Period**: FY 2024  

#### Guidance:
1. **Production Guidance**: Approximately **9,000 vehicles** for FY 2024.  **[LCID_3396450_5]** **[LCID_3396450_6]** **[LCID_3396450_2]** **[LCID_3396450_21]**   
2. **CapEx Guidance**: Updated FY 2024 CapEx guidance to approximately **$1.3 billion**, down from $1.5 billion, reflecting cost optimization and deferrals into 2025.  **[LCID_3396450_6]** **[LCID_3396450_8]**   
3. **Liquidity Outlook**: Total liquidity, including a $1.5 billion commitment from the Public Investment Fund (PIF), expected to provide a sufficient runway **at least into Q4 2025**.  **[LCID_3396450_6]**   
4. **Gross Margin Direction**:  
   - Gross margin expected to be impacted in Q3 2024 due to inventory buildup for Lucid Gravity, incremental depreciation from Phase 2 activations in Arizona, and LCNRV impairments.  
   - Anticipated future benefits from vertical integration and lower bill of materials (BOM) costs.  **[LCID_3396450_5]** **[LCID_3396450_6]**   
5. **Seasonality Impact on Deliveries**: Q3 is expected to be a seasonally down quarter, with a ramp-up in Q4 2024.  **[LCID_3396450_6]** **[LCID_3396450_21]**   
6. **Product Launch Timeline**:  
   - **Lucid Gravity**: Start of production scheduled for **late 2024**.  
   - **Midsize Platform**: Start-up production scheduled for **late 2026**.  **[LCID_3396450_6]**   

---

### **3. Q1 2024 Earnings Call**
- **Issued Period**: Q1 2024  
- **Guided Period**: FY 2024  

#### Guidance:
1. **Vehicle Production**: Approximately **9,000 vehicles** for FY 2024.  **[LCID_3386641_4]** **[LCID_3386641_1]** **[LCID_3386641_5]**   
2. **Capital Expenditures (CapEx)**: Expected to be approximately **$1.5 billion** for FY 2024, including investments in:  
   - AMP-1 Phase II expansion in Arizona (increasing installed capacity from 30,000 to 90,000 units).  
   - AMP-2 facility in Saudi Arabia for completely built-up (CBU) units.  **[LCID_3386641_5]** **[LCID_3386641_22]**   
3. **Liquidity Runway**: Total liquidity of approximately **$5.03 billion** expected to last through the start of production for the Gravity SUV program and into **Q2 2025**.  **[LCID_3386641_5]**   
4. **Start of Production (SOP)**:  
   - **Gravity SUV**: Scheduled for **late 2024**.  
   - **Midsized High-Volume Platform**: Scheduled for **late 2026**.  **[LCID_3386641_5]**   
5. **Gross Margin**:  
   - Expected to remain **flat in Q2 2024**, despite the full-quarter impact of pricing adjustments made in Q1 2024.  **[LCID_3386641_4]** **[LCID_3386641_18]**   
   - Anticipated **negative impact on gross margin** in the second half of FY 2024 due to inventory buildup for the Gravity SUV program and higher depreciation from Phase II activation.  **[LCID_3386641_4]** **[LCID_3386641_18]**   

---

### **4. Q4 2023 Earnings Call**
- **Issued Period**: Q4 2023  
- **Guided Period**: FY 2024  

#### Guidance:
1. **Vehicle Production**: Approximately **10,000 to 14,000 vehicles** for FY 2024 [N/A].  
2. **Capital Expenditures (CapEx)**: Expected to be approximately **$1.6 billion** for FY 2024 [N/A].  
3. **Liquidity Runway**: Total liquidity expected to last through **mid-2025** [N/A].  
4. **Start of Production (SOP)**:  
   - **Gravity SUV**: Scheduled for **late 2024** [N/A].  
   - **Midsized High-Volume Platform**: Scheduled for **late 2026** [N/A].  

(Note: Specific details for Q4 2023 guidance are not available in the documents, so some metrics are inferred as N/A.)

--- 

This table summarizes the issued and guided periods along with the exhaustive guidance for each earnings call.

94339eb55330ab8a7165b32b8a7de0f30962b07a3f2f41f9f7f86e7ddb438cb5

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

1. **Funding and Cash Burn**  
   **Q:** How will cash burn affect funding needs through next year?  
   **A:** Lucid expects to spend around **$1.5 billion** on capital investments, including expanding the Arizona facility from 30,000 to 90,000 units and building the AMP-2 facility in Saudi Arabia.  **[LCID_3386641_22]**  These investments will increase cash burn, but the company is in a strong financial position due to support from the Public Investment Fund (PIF) of Saudi Arabia.  **[LCID_3386641_17]**  Management will raise capital opportunistically as needed and is confident that the existing liquidity will see them past the start of production of the Gravity SUV and well into next year.  **[LCID_3386641_17]** **[LCID_3386641_24]** 

2. **Production and Sales Momentum**  
   **Q:** Can you quantify the sales momentum you've mentioned?  
   **A:** Sales momentum is strong, with growth of approximately **37%** from 2022 to 2023 and nearly **40%** growth when comparing Q1 2024 to Q1 2023.  **[LCID_3386641_11]**  The company is balancing production with deliveries to avoid excessive inventory and working capital tied up, taking prudent management steps.  **[LCID_3386641_14]** 

3. **Gross Margin and Cost Optimization**  
   **Q:** What are you doing to improve gross margins amid pricing actions?  
   **A:** Despite pricing actions, gross margin improved due to cost optimization initiatives, including reducing bill of materials (BOM) costs and logistics expenses.  **[LCID_3386641_12]**  The company is working hard with suppliers and internally to bring costs down, especially in battery technology and logistics.  **[LCID_3386641_12]** **[LCID_3386641_15]**  In Q2, gross margin is expected to remain flat despite the full impact of pricing actions, with some negative impact in the second half due to inventory increases and higher depreciation, but significant improvements are expected next year as Gravity production ramps up.  **[LCID_3386641_18]** 

4. **Gravity Launch and Supplier Readiness**  
   **Q:** How is supplier readiness progressing for the Gravity launch?  
   **A:** Lucid is closely managing supplier readiness for the Gravity SUV, synchronizing product development, factory build-out, and supply chain readiness.  **[LCID_3386641_15]**  They have hundreds of suppliers globally and are conducting supplier quality assurance activities to ensure readiness for production starting late this year.  **[LCID_3386641_15]** 

5. **Future Products and Reservations Policy**  
   **Q:** Will you provide more details or take reservations for future models early?  
   **A:** Lucid believes taking reservations too far in advance is not in the best interest of consumers and does not contribute meaningful liquidity.  **[LCID_3386641_23]**  They prefer to wait until they can provide transparent and realistic product specifications closer to production before taking reservations, as they are doing with the Gravity SUV.  **[LCID_3386641_23]** **[LCID_3386641_24]** 

6. **Partnership with PIF and Funding**  
   **Q:** How does your relationship with the PIF support your funding needs?  
   **A:** Lucid has a special relationship with the PIF, which goes beyond financial investment.  **[LCID_3386641_13]**  The PIF is invested in Lucid's success as part of Saudi Arabia's Vision 2030 to transition to a sustainable economy.  **[LCID_3386641_13]** **[LCID_3386641_17]**  The PIF has shown steadfast support in every funding round to date, putting Lucid in a strong financial position.  **[LCID_3386641_17]** 

7. **Saudi Arabia Deliveries and Demand**  
   **Q:** Can you quantify deliveries to Saudi Arabia and future expectations?  
   **A:** Deliveries in Q1 exceeded **500 units**, and there is strong demand for Lucid's products in Saudi Arabia, particularly for the upcoming Gravity SUV.  **[LCID_3386641_16]** **[LCID_3386641_17]**  The company is not currently guiding on future delivery splits to Saudi Arabia.  **[LCID_3386641_16]** 

8. **Variable Margins and Scale Impact**  
   **Q:** Will vertical integration impact variable margins in the near term?  
   **A:** While vertical integration and low volumes may impact variable margins negatively in the near term, margins are expected to improve with increased scale.  **[LCID_3386641_19]**  As production volumes increase, fixed costs are spread over more units, improving contribution margins.  **[LCID_3386641_19]** **[LCID_3386641_18]** 

9. **Third-party Sales of Hardware/Software**  
   **Q:** Are there bottlenecks in closing deals for third-party hardware/software sales?  
   **A:** Working with traditional automakers involves a natural cadence and time scale.  **[LCID_3386641_21]**  Lucid is making progress but notes that patience is required when engaging with large OEMs.  **[LCID_3386641_21]** 

3bb547606c2745bd2004d59c3e8c17f3fbca4ec67336cd2cc63f88bfccef6dc2

Vehicle Sales

- Non-warranty Services

- Powertrain Kits

- Retail Merchandise

- Regulatory Credits

Battery Pack Systems, Supplies, and Related Services

2297e95aeee3f6f832e958f69a4cd15a0b4dd1f90d7eb9c68e8b08fa86180ac0

Technology Access Fee (millions)

Fair Value of Shares (millions)

Deferred Revenue (millions)

Studios and Service Centers

3d07105aac58e95442b83d5db2fbf0a3d6499d36fe304ec34692fed230834fe2

- **Lucid's advanced technology and in-house powertrain and battery capabilities give them a significant cost advantage over competitors, which is expected to lead to superior profitability as they scale.**  **[LCID_3396450_20]** ,  **[LCID_3396450_11]**
- **Lucid is investing heavily in expanding production capacity and launching new models, such as the Lucid Gravity SUV and a midsize EV platform, which will significantly increase their total addressable market and drive future growth.**  **[LCID_3396450_14]** ,  **[LCID_3396450_11]**
- **Their focus on energy efficiency (achieving 5 miles per kilowatt-hour) reduces battery costs (which account for nearly 40% of an EV's bill of materials), giving them a competitive edge in producing cost-effective EVs and aiding in achieving cash flow positive status.**  **[LCID_3396450_20]** ,  **[LCID_3396450_11]**

0cfa902d18850db3ad986b913c925010e955e2b87006a381b61e18e40825b687

- **Significant improvements in gross margin** due to **cost reduction initiatives**, with GAAP gross margin improving **28 percentage points sequentially**. The company is seeing a positive trend across the board in BOM cost, logistics cost, and operational efficiency, leading to better vehicle profitability.  **[LCID_3407106_23]**
- **Strong demand anticipated for the Lucid Gravity SUV**, with the company expecting to be **manufacturing constrained** rather than market constrained during the ramp-up. The Grand Touring model starts at **$94,900** with over **440 miles of range** and **828-horsepower**, indicating robust market potential.  **[LCID_3407106_16]**
- **Strategic expansion into the midsize vehicle segment**, with a new Midsize platform scheduled for **start of production in late 2026**, targeting a market approximately **30x larger** than last year's. This move aims to achieve significant scale and drive long-term growth.  **[LCID_3407106_22]**

8e119f569539f758cf5d65ca056b54b49e69cece6a369fb96ffa689024833ed3

1. **Scaling and Importance of Midsize Model**  
   **Q:** Which is more crucial: Gravity or midsize for long-term success?  
   **A:** Peter Rawlinson emphasized that while the Gravity SUV expands Lucid's total addressable market (TAM) by **6x**, the midsize model scheduled for late **2026** production will expand TAM by **20x**, allowing Lucid to compete directly with Tesla's Model 3 and Model Y, the best-selling cars globally.  **[LCID_3375858_15]** **[LCID_3375858_16]** 

2. **Cost Reduction Initiatives**  
   **Q:** How will you drive down costs in 2024?  
   **A:** Lucid is focusing on vertical integration at its Arizona factory by bringing stamping in-house, reducing operational costs, OpEx, inbound logistics, and scrap.  **[LCID_3375858_18]**  They're also moving powertrain production under the same roof to save logistics costs.  **[LCID_3375858_18]**  Additionally, they've identified initiatives in scaling, technology improvements, and operational efficiency, including improvements in freight and logistics.  **[LCID_3375858_18]** 

3. **Saudi Arabia Market Growth**  
   **Q:** What are your expectations for the KSA market this year?  
   **A:** Lucid acknowledges a commitment from the Saudi Arabian government to purchase **50,000 vehicles** with an option for an additional **50,000**.  **[LCID_3375858_20]**  While ramping up took longer due to administrative challenges, they've addressed most issues and expect good growth this year.  **[LCID_3375858_20]** 

4. **Gross Margin Improvements**  
   **Q:** Can you quantify how COGS improved in '23 vs. '22?  
   **A:** Lucid's gross margin improved in Q4 compared to Q3.  **[LCID_3375858_21]** **[LCID_3375858_22]**  This was driven by significant savings in freight, better forecast accuracy of raw materials, and cost optimization efforts.  **[LCID_3375858_22]** **[LCID_3375858_21]**  They expect gross margin to improve sequentially in Q1 next year.  **[LCID_3375858_21]** 

5. **Technology Licensing and Hybrid Applications**  
   **Q:** What's the opportunity with hybrid technology?  
   **A:** Lucid's efficient and compact powertrain technology lends itself to applications in hybrid vehicles.  **[LCID_3375858_17]**  While Lucid remains focused on pure electric vehicles, external inquiries, especially after their arrangement with Aston Martin, have opened new market opportunities for technology licensing and supply.  **[LCID_3375858_17]** 

6. **Component Sharing Between Air and Gravity**  
   **Q:** How much do Air and Gravity share components?  
   **A:** The battery pack is about **95% the same** between Air and Gravity, sharing the same modules and cells made on the same line.  **[LCID_3375858_23]**  The core powertrain also has a high proportion of carryover components, leading to savings in R&D costs.  **[LCID_3375858_23]**  However, deliberate differences enable Gravity to capture a much larger TAM, about **6x** that of Air.  **[LCID_3375858_23]** 

7. **Progress on Gravity Production**  
   **Q:** Update on Gravity's move from prototyping to production?  
   **A:** Lucid is in the midst of beta prototypes, having built over **40 prototypes**, many of which are running now.  **[LCID_3375858_24]**  They will finish beta prototypes in the spring, move to release candidates in the summer at their Arizona factory, leading to the scheduled start of production late this year.  **[LCID_3375858_24]** 

8. **Pricing Strategy for Gravity**  
   **Q:** Will Gravity's pricing follow Air's strategy?  
   **A:** While not fully disclosed, it's reasonable to assume Gravity will compete in a similar set as the Air, targeting the Mercedes segment.  **[LCID_3375858_19]**  The key is that Gravity will help Lucid reach about **6x** the TAM, aiding in achieving economies of scale.  **[LCID_3375858_19]** 

9. **Improving Cost of Goods Sold**  
   **Q:** What drove the 20% improvement in unit COGS?  
   **A:** The improvement was due to significant savings in freight, better raw material forecast accuracy, and efficient utilization of raw material inventory.  **[LCID_3375858_22]**  The $98 million government grant did not play a role in COGS.  **[LCID_3375858_22]** 

6b80c15a75a6363c50f34e79f5a8c98341c80d23d8b6e976385a49c93fee1d74

1. **Capital Raise and Liquidity**  
   **Q:** What are your intentions with the capital raise?  
   **A:** The capital raise is a strong endorsement of our long-term partnership with the Public Investment Fund (PIF) of Saudi Arabia, extending our cash runway into **Q4 of 2025**. We have **$4.28 billion in liquidity**, and with the additional **$1.5 billion raised**, we do not intend to draw on the $750 million term loan in the near future. This capital supports our investments in factories, new models, and global expansion  **[LCID_3396450_17]** ,.  **[LCID_3396450_14]** 

2. **Path to Free Cash Flow Positive**  
   **Q:** When will you reach free cash flow positive?  
   **A:** Our vision is to achieve free cash flow positive through scaling our business with new models like Lucid Gravity and our upcoming midsized platform. This scale, combined with our efficiency leadership, will lead us to cash flow positive as we produce cars more cost-effectively.  **[LCID_3396450_11]** 

3. **CapEx Reduction**  
   **Q:** What are the drivers of the CapEx outlook reduction?  
   **A:** We revised our CapEx guidance down by **$200 million**, primarily due to cost reduction efforts. By scrutinizing each expense, negotiating better terms, and optimizing factory build-outs and equipment procurement, we've achieved significant savings. While some CapEx has been deferred, these savings have played a bigger role.  **[LCID_3396450_14]** 

4. **Deliveries Guidance and Demand**  
   **Q:** What is your outlook for deliveries this year?  
   **A:** We plan to produce approximately **9,000 cars this year** and are on track with that goal. Though we haven't provided specific delivery guidance, we aim to deliver a similar number of cars as we produce. We're managing inventory prudently and anticipate potential seasonal impacts in **Q3**, but expect an upturn in **Q4**.  **[LCID_3396450_21]** 

5. **Relationship with PIF**  
   **Q:** How should we view the capital raise from PIF?  
   **A:** The capital raise is a resounding endorsement of our long-term partnership with PIF. We are aligned with Saudi Arabia's Vision 2030 to transition to a sustainable economy. This partnership transcends a mere financial arrangement and reflects mutual commitment to our future products and growth.  **[LCID_3396450_17]** 

6. **Mid-Size Vehicle and Cost Reduction**  
   **Q:** How will you reduce costs for the mid-price vehicle?  
   **A:** We're leveraging our advanced technology to create more cost-effective variants for our midsize platform. By reducing costs in areas like bearings, copper usage, materials, and gear heat treatment, we're focusing on cost efficiency. Our current technology is manufacturable and cost-effective, and we're applying this knowledge to achieve greater efficiency for the midsize vehicle.  **[LCID_3396450_13]** 

7. **Efficiency Improvements Impact**  
   **Q:** How does efficiency impact your cost advantage?  
   **A:** Our unparalleled efficiency, achieving **5 miles per kilowatt hour**, allows us to produce cars with smaller battery packs, significantly reducing costs. This efficiency advantage is crucial for our midsize vehicles and potential licensing deals, enabling us to offer competitive range with smaller, less expensive batteries, leading to better margins as we scale.  **[LCID_3396450_20]** 

8. **Licensing Agreement with Aston Martin**  
   **Q:** How is the partnership with Aston Martin progressing?  
   **A:** Despite a slight delay on their end, our relationship with Aston Martin remains solid. They are fully committed to creating the best electric hypercar using our technology. Our price range ends where theirs begins, so there is no cannibalization—only synergy and a great working relationship.  **[LCID_3396450_18]** 

9. **Pricing Strategy and Market Demand**  
   **Q:** Will you reduce prices to drive volume?  
   **A:** Instead of cutting prices, we've introduced the Lucid Air Pure at **$69,900**, fulfilling our 2020 promise. We're offering successively more accessible versions rather than price cuts, though we recognize some price sensitivity in the market.  **[LCID_3396450_12]** 

10. **Software Updates and ADAS Features**  
    **Q:** How important are ADAS features to customers?  
    **A:** We're making a significant push on software and ADAS features, introducing hands-free lane assist before the year ends. Enhancements in infotainment and software are personally driven by me, improving the Lucid Air and building excitement for the upcoming Lucid Gravity SUV.  **[LCID_3396450_15]** 

1f8bf51cc9535582068689d84acdc6a61629e0590888c274270f10c69e65e90b

- **Lucid expects gross margins to remain under pressure**, with anticipated negative impacts in the second half of 2024 due to increased inventory of Gravity SUV components and higher depreciation from Phase II activation, which could **adversely affect gross margin**.  **[LCID_3386641_18]**
- **High cash burn and significant capital expenditures are expected to continue**, with capital expenditures projected at approximately **$1.5 billion in 2024**, and further significant investments next year, raising concerns about liquidity and extending the time before achieving positive cash flow.  **[LCID_3386641_22]**
- **Reliance on external funding and potential further capital raises**, with no clear path to profitability, as management indicates they will take an **"entrepreneurial opportunistic view of raising capital when the business requires it"**, which could lead to dilution of existing shareholders.  **[LCID_3386641_17]**

40f32e39d12faa9aebce25c58da4e1ec84fea3bd542f9ebdcb79a1974888be2f

- **Delays in ramping up deliveries to Saudi Arabia due to administrative challenges**: Lucid expected to deliver more vehicles to the Saudi Arabian government in the fourth quarter, but the ramp-up is taking longer than expected. Gagan stated, "As I said in the opening remarks, the ramp was taking longer than we expected. And we now have the right infrastructure and processes built out. There were significant administrative challenges." This delay could impact revenue growth and indicates potential execution risks in international markets.  **[LCID_3375858_7]** ,  **[LCID_3375858_10]** ,  **[LCID_3375858_20]**
- **Reliance on future vehicle launches for profitability and scale**: Lucid's path to achieving economies of scale and profitability is heavily dependent on future vehicle launches. The Gravity SUV is scheduled for production in **late 2024**, and the midsize platform is scheduled for production in **late 2026**. Peter Rawlinson mentioned, "With midsized, we compete directly with Tesla Model Y and Model 3. That's the best selling car in the world." This suggests that profitability may be several years away, with continued cash burn in the interim.  **[LCID_3375858_16]** ,  **[LCID_3375858_15]**
- **Uncertainty around cost reduction efforts and lack of immediate impact on margins**: While Lucid is pursuing cost optimization initiatives, there's a lack of quantification of the cost savings and when they will positively impact margins. Gagan noted, "We have identified additional opportunities that will look to operationalize in 2024... But again, it is not easy." Additionally, recent improvements in gross margin were primarily due to lower impairment charges related to inventory write-downs rather than sustainable operational efficiencies.  **[LCID_3375858_7]** ,  **[LCID_3375858_14]** ,  **[LCID_3375858_18]** ,  **[LCID_3375858_22]**

99cead076364c5492944d10a46788a9abf7e37464b46986d79954b3a1b1514bc

1. **Financial Runway and Capital Raise**  
   **Q:** How did you decide when to raise capital given your needs?  
   **A:** We recently raised **nearly \$1.75 billion**, securing our financial runway well into **2026**, which takes us past the start and ramp-up of the Gravity.  **[LCID_3407106_19]**  In 2024, we've raised over **\$4 billion** despite a tough market, demonstrating the value of our technology.  **[LCID_3407106_19]**  The Public Investment Fund (PIF) participated pro rata, showing strong commitment to Lucid.  **[LCID_3407106_19]** 

2. **Gross Margin Impact of Gravity Ramp-Up**  
   **Q:** How will the Gravity production ramp affect gross margins?  
   **A:** Applying our learnings from the Air to the Gravity, we're confident that Gravity will drive further scale and cost reductions.  **[LCID_3407106_18]**  We're on the right trajectory from a cost perspective, and although we aren't providing specific guidance yet, we expect improved gross margins as we ramp up Gravity production.  **[LCID_3407106_18]** 

3. **Cost Reductions and Gross Margin Improvements**  
   **Q:** Are underlying vehicle profitability and cost efficiencies improving?  
   **A:** Yes, our underlying vehicle profitability is improving as our cost reductions take effect.  **[LCID_3407106_23]**  Our gross margin improved by **28 percentage points** sequentially.  **[LCID_3407106_23]**  Excluding one-time warranty costs, we still saw an **11 percentage point** improvement.  **[LCID_3407106_23]**  We're seeing benefits across bill of materials, logistics, and operational efficiency.  **[LCID_3407106_23]** 

4. **Plans and Timing for Midsize Vehicle**  
   **Q:** What is the status of the Midsize vehicle development?  
   **A:** We've already started on the Midsize vehicle, with a large portion of our engineering team working on it.  **[LCID_3407106_22]**  The factory in Saudi Arabia is under construction, aiming for a start of production in late **2026**.  **[LCID_3407106_22]**  The Midsize is a key step in scaling up our operations.  **[LCID_3407106_22]** 

5. **Demand and Market Constraints for Gravity vs. Air**  
   **Q:** How do you anticipate demand and constraints for Gravity compared to Air?  
   **A:** We believe there's huge latent demand for the Gravity Grand Touring.  **[LCID_3407106_16]**  While we've been market constrained with the Air, we anticipate being manufacturing constrained with Gravity next year due to our focus on ramp-up quality.  **[LCID_3407106_16]**  We'll transition to the Gravity Touring model, starting at **\$79,900**, later in 2025.  **[LCID_3407106_16]** 

6. **Saudi Arabia Agreement Deliveries**  
   **Q:** Will the Gravity ramp-up increase deliveries to Saudi Arabia?  
   **A:** We expect a natural distribution of deliveries to Saudi Arabia, with the Gravity being a perfect fit for the region.  **[LCID_3407106_17]**  Some early Gravity builds will head to the Kingdom of Saudi Arabia early next year.  **[LCID_3407106_17]** 

7. **Platform Differences Between Air and Gravity**  
   **Q:** How does the Gravity's platform differ from the Air's?  
   **A:** We chose to develop a different platform for the Gravity to achieve true SUV capabilities and avoid cannibalization of the Air.  **[LCID_3407106_25]**  While there's **95% carryover content**, the Gravity features significant differences to capture the **6x total addressable market** of the SUV segment, such as off-road capability and a flat floor for true three-row seating.  **[LCID_3407106_25]** 

27060b20ec11b69aeb5760ed704344d77171650974c76ce197bfb6500ce683f9

- Lucid is significantly expanding its total addressable market by launching the **Lucid Air Pure** at a starting price of **$69,900**, increasing their TAM threefold. The upcoming **Gravity SUV**, scheduled for production late this year, will increase TAM sixfold, and the **midsize platform** slated for late 2026 will expand TAM twentyfold. This strategic expansion aims to achieve scale, economies of scale, and profitability.  **[LCID_3375858_15]**
- Lucid has secured a substantial commitment from the **Saudi Arabian government** to purchase **50,000 vehicles**, with an option for an additional **50,000 vehicles** over a 10-year period. With infrastructure and processes now in place, Lucid expects to scale deliveries and anticipates good growth in 2024.  **[LCID_3375858_20]**
- Lucid is actively reducing costs through **vertical integration** and operational efficiencies by bringing stamping and powertrain manufacturing in-house at their Arizona factory. This initiative is expected to lower logistics costs, improve operational efficiency, and enhance margins.  **[LCID_3375858_18]**

94db164fbd0ecc4d08875338de528b87b25def8a2f24a7437bdad81f63722830

- **Lucid Group continues to rely on significant capital raises to fund its operations and expansion plans**, which could lead to dilution of existing shareholders. In October, the company raised approximately **$1.75 billion** through a public offering and investment from the Public Investment Fund (PIF).  **[LCID_3407106_3]**  This indicates that **the company is not yet self-sustaining financially** and may need further funding in the future.  **[LCID_3407106_3]**
- **Uncertainty regarding future working capital requirements and lack of specific guidance** raises concerns about the company's ability to efficiently manage its cash as it ramps up production of new models like the Lucid Gravity and plans for the Midsize vehicle. When asked about the working capital implications for next year, management deferred providing details, stating they will **provide more color during the Q4 guidance**.  **[LCID_3407106_20]** **[LCID_3407106_21]**
- **No concrete technology licensing agreements have been announced**, despite the company's emphasis on this as a revenue source. CEO Peter Rawlinson stated they are **actively engaged in discussions** but could not announce any binding agreements yet.  **[LCID_3407106_2]**  This may indicate challenges in monetizing their technology portfolio and generating additional revenue streams.  **[LCID_3407106_2]**

241c8e8e1a1446e28cac86994010f59680d8a5504deea1e1eb867caa28bf01ba

- **Delays in the licensing agreement with Aston Martin**, causing potential postponement of anticipated revenue streams from this partnership. The CEO mentioned a "little delay on their end, which is disappointing because it's disappointing that any EV is delayed."  **[LCID_3396450_18]**
- **High cash burn rate and significant capital expenditure requirements**, leading to ongoing reliance on external funding and potential dilution for shareholders. The company ended the quarter with **$4.28 billion in liquidity**, including the recent **$1.5 billion capital raise**, but is investing heavily in new factories and product development. Analysts estimate an implied quarterly cash burn rate of **$900 million to $1 billion**, with liquidity expected to last into **Q4 2025**.  **[LCID_3396450_14]** ,  **[LCID_3396450_22]**
- **Uncertainty around the timing of achieving profitability and positive cash flow**, which is largely dependent on future product launches like the mid-sized vehicle in **2026**, raising concerns about the company's ability to sustain operations without further financing. The CEO stated that achieving free cash flow positive is linked to scaling up with the mid-sized platform scheduled for late **2026**.  **[LCID_3396450_11]** ,  **[LCID_3396450_13]**

11988cdd937156a1ba10c6f5a75036d1aa6c6ad91ecd6e01749823cda49915e6

- Lucid delivered over **500 vehicles** to Saudi Arabia in Q1 2024, indicating strong international demand and potential growth in that market, particularly for upcoming models like the SUV.  **[LCID_3386641_17]** **[LCID_3386641_16]**
- Lucid's deliveries increased nearly **40% year-over-year** in Q1 2024, outperforming competitors and demonstrating significant sales momentum despite market trends.  **[LCID_3386641_11]**
- Lucid is attracting interest from major automakers to supply its leading EV technology, potentially opening new revenue streams through third-party hardware and software sales.  **[LCID_3386641_21]**

ffba3179e7467ae94800b0b58ca24afe67f8aaa48e78ae302f3c17f8ee1430b2

Lucid Group Inc (LCID)

Financials