Electric vehicle maker Lucid, which targets wealthy buyers on the luxury end of the EV market, reported it made $150.9 million after selling 1,404 vehicles.
The company said it expects to hit its production goal of at least 10,000 vehicles in 2023, according to n a news release posted on its website.
Further down is a copy of the presentation used for its earnings call, and all was not as it seemed.
First was the cost of making that money, which was listed at $555.8 million.
The company also spent another $431.2 million on research, development, and other costs, while the only additional revenue was $71.9 million from other sources.
After crunching the numbers, the company is at a loss of $764.2 million for the quarter.
This means for every car sold; the company averages losing a whopping $544,301.
Despite this concerning figure, which would have most CEOs up in arms, the the luxury electric vehicle maker seemed upbeat.
“We’re on track toward achieving our 2023 production target of more than 10,000 vehicles, but we recognize we still have work to do to grow our customer base. During our second quarter, we achieved several major milestones, including signing agreements to enter into a long-term strategic partnership with Aston Martin,” said Lucid’s CEO and Chief Technology Officer Peter Rawlinson.
“We look forward to exciting new products in the second half of this year, including the planned start of production of the Lucid Air Sapphire and the Lucid Air Pure Rear Wheel Drive, plus the highly anticipated unveiling of our new SUV, Lucid Gravity, forthcoming in November.”
According to the release, the company now has $6.25 billion it will use to keep the company afloat until 2025.
According to Barron’s, the company’s stock rose Tuesday, despite the deficit.
“The tone of the call was notably more positive than we have heard recently,” Chris McNally, an analyst with Evercore, said on Tuesday, according to Insider. “With yesterday’s news of price cuts, investors will now question how much volume can grow on price reductions.”
“Profit losses on electric vehicle sales are nothing new. It’s a concept that legacy car companies like Ford and GM are also grappling with as they try to transition their fleets away from gas-guzzling vehicles,” it wrote.
However, losses are not just isolated to the luxury Electric vehicle makers.
As The Daily Fetched reported last month, Ford Motor Company projected a $4.5 billion loss for electric vehicles in its second-quarter financial results for 2023.
The figure is nearly twice its $2.1 billion loss on its Model E division in 2022.
Despite the EV losses, Ford posted a $1.9 billion net income bringing in $45 billion in net revenue.
The company also earned $2.4 billion in its commercial division, Ford Pro, while its gas and hybrid division, Ford Blue, earned $2.3 billion.
Ford CEO Jim Farley said, “The near-term pace of EV adoption will be a little slower than expected, which is going to benefit early movers like Ford.”
“EV customers are brand loyal, and we’re winning lots of them with our high-volume, first-generation products; we’re making smart investments in capabilities and capacity around the world; and, while others are trying to catch up, we have clean-sheet, next-generation products in advanced development that will blow people away.”