Lucid Falls After Maker of Luxurious EVs Misses Revenue Estimates

(Bloomberg) — Lucid Group Inc. shares fell in late buying and selling after third-quarter gross sales and earnings trailed estimates and reservations declined for the corporate’s luxurious electrical automobiles.

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The automaker’s loss was 40 cents a share, in keeping with a press release Tuesday, wider than analysts’ common estimate of a 31-cent loss. Income was $195.5 million, lacking the $204 million prediction in a Bloomberg survey.

The Newark, California-based firm’s shares declined 13% as of 5:23 p.m. in New York, after shedding 65% of its worth this 12 months by way of Tuesday’s shut.

Provide-chain snags and logistics issues marred the start of Lucid’s 12 months, main the startup to revise down its manufacturing goal twice. Lucid reaffirmed the lowered purpose Tuesday, saying it nonetheless expects to have the ability to make 6,000 to 7,000 automobiles by 12 months’s finish. Reservations for Lucid’s Air sedan dropped from 37,000 within the second quarter to 34,000, and the corporate introduced it could begin taking preorders for its delayed SUV in 2023.

Lucid exited the third quarter with $3.85 billion in money, equivalents and investments, down from $4.6 billion on the finish of the prior quarter.

The corporate additionally stated Tuesday that it struck a deal to promote as a lot as $600 million in shares by way of Bofa Securities Inc., Barclays Capital Inc. and Citigroup World Markets Holdings Inc., and as a lot as $915 million in shares to an affiliate of Saudi Arabia’s sovereign wealth fund. Saudi Arabia already owns a majority of Lucid’s shares by way of its wealth fund.

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