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Shares of EV start-up Lucid rise after executives confirm new reservations, 2022 vehicle production
Shares of Lucid Group jumped by more than 5% during afterhours trading before retreating to about even after reporting its first quarterly financial results as a public company. The electric vehicle start-up announced a notable increase in vehicle reservations and confirmed its production target for next year, while reporting a net loss of $524.4 million in the third quarter. Lucid, which went public via a SPAC deal in July, reported it has lost $1.5 billion through the first nine months of the year. The company on Monday said it has more than 17,000 reservations for its Air sedan, up from 13,000 through the third quarter. The reservations through September represented an order book of $1.3 billion, the company said. Lucid also confirmed its 20,000 vehicle production target for next year, but said hurdles remain for achieving those plans. “We remain confident in our ability to achieve 20,000 units in 2022,” Lucid CEO Peter Rawlinson said in a press release. “This target is not without risk given ongoing challenges facing the automotive industry, with global disruptions to supply chains and logistics.” Rawlinson said the automaker was taking steps to mitigate supply chain hurdles and still planned to launch less expensive versions of Lucid Air through 2022. The automaker’s revenue in the third quarter was $232,000 largely from a battery deal with the Formula E electric racing league, Lucid CFO Sherry House told Wall Street analysts Monday during a call. She said the company will begin recording revenue from vehicle sales and report details of its sales beginning for the fourth quarter. Shares closed at $44.88 per share, up 2.2%. The stock price remains below its 52-week high of nearly $65 a share in February when it was reported that Lucid was nearing a deal with blank-check company Churchill Capital IV Corp. to go public.
Read more about electric vehicles from CNBC Pro
Batteries are the ‘new oil’ says Morgan Stanley — Here are stocks for every part of the supply chain As EV stocks soar to crazy valuations, Wall Street sees value in these related names Morgan Stanley is skeptical of red-hot Lucid, says EV stock could fall 70% Shares of Lucid are up by more than 80% since the company went public through a reverse merger with Churchill in July. The largest daily increase of 31% occurred late last month when the company confirmed customer deliveries of the Lucid Air Dream Edition were beginning. “I feel great about our stock price,” House told CNBC during a phone interview. “The run up that we’ve had, where it is today and also the growth trajectory, frankly, that’s in front of us. I see that we’re being regarded as a technology company with a platform that’s extensible across lots of vehicle variants and sustainable tech.” Rawlinson echoed those remarks: “I think what is happening in our stock value reflects our status as a tech company more than a car company.”

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