Lucid Group, Inc. Q1 FY2025 earnings call

• Delivered 3,109 vehicles in Q1 2025, up over 58% YOY, fifth consecutive quarter of record deliveries.
• Produced 2,212 vehicles, up 28% YOY; over 600 vehicles in transit to Saudi Arabia for Q2 production.
• Gross margin improved ahead of guidance, with regulatory credit revenue contributing significantly.
• Lucid Gravity received positive reception with over 3,000 visitors to NY studio, strong media reviews, and over 75% of orders from new customers.
• Engaged in strategic partnerships like with KAUST for technology leadership, and discussions with partners regarding autonomous vehicles.
• Acquired Nikola assets in Arizona, which provides cost-effective access to EV technology assets.
• Addressed tariff uncertainties, emphasizing vertical integration in U.S. manufacturing but noting policy changes create uncertainty.

In the first quarter of 2025, Lucid delivered 3,109 vehicles, a year-over-year increase of more than 58% and their fifth consecutive quarter of record deliveries. Production was 2,212 vehicles, up 28% year-over-year. Total revenue for the quarter was $235 million, with $31.5 million in regulatory credit revenue. The Lucid Air remained a top seller, and the Lucid Gravity saw strong interest with over 3,000 people visiting the New York studio during a special event, leading to increased awareness and follower growth on social media.

• Production guidance for 2025 is approximately 20,000 vehicles.
• CapEx guidance for 2025 is approximately $1.4 billion, with potential levers to adjust based on market dynamics.
• Gross margin potential impact from tariffs ranges from 8% to 15% based on current understanding.

• Tariff uncertainties and changes in trade policy creating uncertainty in supply chain and consumer impact.
• Macroeconomic uncertainties affecting the automotive market and consumer demand.
• Challenges in ramping up production for new models like the mid-sized platform amidst supply chain and policy changes.

Q: With the acquisition of the Nikola factory, can midsize rollout and ramp be accelerated than previously planned second half 2026? Also, does this acquisition minimize the capital expenditure than previously planned?

A: Marc Winterhoff stated accelerating midsize isn't possible in current environment due to complexity and tariff uncertainty; Taoufiq Boussaid mentioned the Nikola deal was a beneficial financial deal that could mitigate some CapEx but CapEx guidance remains $1.4 billion with potential for improvement.

Q: Are there any plans for Lucid to sell or lease its technology to other car manufacturers in the future?

A: Marc Winterhoff said it's always been the plan, with active discussions with many companies though tariffs may affect focus currently.

Q: What is the impact on Lucid supply chain as a result of Chinese curbs on export of rare earth material? To what extent is Lucid exposed to the tariffs?

A: Marc Winterhoff noted vertical integration allows more control over components; Lucid's high power density drive units require less rare earth materials and can potentially use different rare earths without impacting performance.

Q: Is it fair to say that Lucid lacks urgency with regard to production ramp and deliveries?

A: Marc Winterhoff said bringing high-quality vehicle to market requires thoughtful execution; supply chain bottlenecks were addressed, and deliveries of Lucid Gravity Dream Edition have started with ramping to continue soon.

Q: Having been lucky enough to experience the Gravity, can you tell us where you stand kind of on test drives and what you're seeing maybe just call it qualitatively from an order perspective at this point?

A: Marc Winterhoff said strong order inflow with Dream Edition almost sold out; test drives and studio cars are being rolled out as studios build them.

Q: Do you have an update on where the Atlas drivetrain sits right now?

A: Marc Winterhoff said they're actively discussing when to announce the Atlas drivetrain, likely in the next few months/quarters.

Q: Regarding 2025 outlook, breakdown between Sedans and the Gravity in terms of production and deliveries?

A: Marc Winterhoff said Air is selling well but not expected to drastically increase sales; balance will come from Gravity, with details to be seen by end of year.

Q: Can you remind us again kind of the plan to address the convertible bonds maturing in 2026?

A: Taoufiq Boussaid said they've been opportunistic in executing transactions, will continue to be, and are confident in driving next phase but not specifying timing.

Q: In the near term, would Lucid divert time to re-architect existing supply chains for the Air and the Gravity at the potential detriment to the midsized platform timeline?

A: Marc Winterhoff said no, focus is on midsize with no detriment to existing products' supply chain work.

Q: Regarding reviews of the Gravity mentioning fit, finish, and technology issues, is the vehicle on track versus expectations at start of 2025?

A: Marc Winterhoff said there were technical issues like software and HUD supplier ramping, but they've been addressed and deliveries are continuing with ramping to follow.

Q: With Gravity production ramping, how to think about timing and puts and takes towards margins moving towards breakeven and profitability?

A: Taoufiq Boussaid said scale is the key lever, Gravity contributes to reaching scale, and mid-size program will help mitigate fixed costs under absorption.