Lucid (NASDAQ:LCID) stock is on the rise following the release of its second-quarter earnings report. Additionally, the company announced a $1.5 billion investment from Ayar Third Investment Company, an affiliate of Saudi Arabia’s Public Investment Fund (PIF), further boosting investor confidence.
The investment includes the purchase of $750 million in convertible preferred stock through a private placement, as well as another $750 million through an unsecured delayed draw term loan facility.
During the quarter ended June 30, Lucid produced 2,110 vehicles, slightly less than the previous year’s 2,173 vehicles. However, deliveries saw a significant increase of 70.5%, reaching a record-high of 2,394 vehicles.
CEO Peter Rawlinson expressed optimism about the company’s performance, citing strong sales momentum, cost optimization efforts, and anticipation for the upcoming Lucid Gravity launch.
Key Financial Highlights:
- Revenue growth of 33% to $200.6 million compared to $150.9 million in the same period last year.
- Net loss of $643.39 million, an improvement from $764.23 million in the previous year.
- Diluted net loss per share of 34 cents, down from 40 cents year-over-year.
- Lucid expects to achieve profitability by 2030, with a projected GAAP EPS of 5 cents.
- Total liquidity of $4.28 billion at the end of the quarter.
Thanks to the Ayar investment, Lucid is confident in its ability to fund operations until at least the fourth quarter of 2025. This financial boost is expected to support the production of the highly-anticipated Gravity SUV, scheduled to start production later this year.
Investors and analysts are closely watching Lucid as it navigates its early stages and works towards sustainable growth and profitability. The company’s strategic partnerships and financial backing from PIF affiliate Ayar position it well for future success in the competitive EV market.
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Author Bio: Eddie Pan specializes in institutional investments and insider activity, providing insights on popular stocks for InvestorPlace’s Today’s Market team.
