Lucid Reports Q3 Earnings Miss, Secures $1.75 Billion from Saudi Fund Amid Turnaround Push

Lucid Group, the electric vehicle manufacturer, reported third-quarter earnings that fell short of analyst expectations, as the company advances its operational reset to curtail costs and reduce losses.

The firm also announced a $1.75 billion increase in a delayed draw term loan from Saudi Arabia’s Public Investment Fund, its largest shareholder, which is expected to bolster financial flexibility during the turnaround efforts.

Lucid’s stock declined roughly 5% in aftermarket trading following the release.

Here is a breakdown of Lucid’s third-quarter performance compared to LSEG consensus estimates:

• Loss per share: $2.74 versus an expected loss of $2.28
• Revenue: $350 million versus $407 million expected

Despite the top- and bottom-line misses, Lucid’s adjusted EBITDA loss of $726 million surpassed the Wall Street expectation of a $611 million loss. The net loss for the quarter stood at $830.9 million, down from $978.4 million in the prior year.

These results mark the first earnings report under CEO Silvio Napoli, who assumed leadership in June and initiated a restructuring plan. The plan includes cost-cutting measures and the postponement of the midsize vehicle launch from late 2024 to the second half of 2025.

“Our transformation is beginning to show progress. We are acting with urgency, strengthening the fundamentals and driving greater discipline, while continuing to invest in the priorities to deliver profitable long-term growth,” Napoli stated.

The turnaround strategy encompasses $1.4 billion in cash flow improvements this year, alongside key initiatives such as a robotaxi program with Uber and Nuro, and the development of a factory in Saudi Arabia.

The additional capital from PIF is anticipated to provide liquidity support through the fourth quarter of 2027, funding operations and critical investments, including the commencement of midsize vehicle production. This increases Lucid’s total liquidity to $3.75 billion, up from $2 billion at the end of the third quarter.

“We are grateful for the continued financial support from our anchor shareholder, which further energizes us to remain focused on execution and on our commitments as we build a stronger, sustainable Lucid,” Napoli added.

Lucid indicated that it will share its midterm plan and targets early next year. The company had suspended its previous guidance in May, citing the need for time to develop the turnaround strategy under new leadership.

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