LCID

1. Key Historical Highlights

• June 16, 2025: Lucid Group launched Android Auto compatibility for Lucid Air, enhancing infotainment experiences.
• June 5, 2025: Douglas Grimm elected to Lucid's Board, bringing extensive automotive experience.
• June 4, 2025: Lucid strengthened its U.S. supply chain with a new graphite material supply agreement with Graphite One.
• May 8, 2025: Opened a new Studio and Service Center in New Jersey to serve the expanding customer base.
• May 6, 2025: Lucid delivered 3,109 vehicles in Q1 2025, marking a 58% year-over-year increase.
• May 6, 2025: Announced a strategic partnership with KAUST to advance EV technology and autonomous driving capabilities.
• April 15, 2025: Introduced the 2026 Lucid Gravity Grand Touring, an SUV with advanced features and performance.
• April 11, 2025: Acquired select facilities and assets from Nikola Corporation, expanding manufacturing capabilities.
• April 8, 2025: Closed a $1.1 billion offering of convertible senior notes, strengthening financial flexibility.
• February 25, 2025: CEO transition with Marc Winterhoff appointed as Interim CEO.
• February 14, 2025: Lucid Gravity became available for order in Canada, expanding market reach.
• January 28, 2025: Announced the Lucid Gravity with advanced charging capabilities and access to Tesla Superchargers.
• January 6, 2025: Lucid Gravity leveraged Panasonic's high-performance EV batteries, enhancing range and efficiency.
• November 7, 2024: Opened orders for the Lucid Gravity Grand Touring, set to start production in late 2024.
• October 28, 2024: Lucid Air earned a five-star overall safety rating from NHTSA for 2025.
• October 17, 2024: Raised approximately $1.67 billion through a public offering and investment by the Public Investment Fund.
• August 5, 2024: Achieved record deliveries of 2,394 vehicles in Q2, a 70.5% year-over-year increase.
• July 16, 2024: Introduced the Lucid Air Pure as the most efficient vehicle with 5.0 miles/kWh efficiency.

2. Financial Performance Overview

Revenue Growth

Lucid Group has shown consistent revenue growth driven by increased vehicle deliveries and strategic initiatives:

• Q1 2025: Revenue of $235 million, a 36% increase year-over-year.
• Q2 2024: Revenue of $200.6 million, up 32.9% year-over-year.
• Q3 2024: Revenue of $200 million, a 45.2% increase year-over-year.

Profit Margins

Lucid has made progress in improving its gross margins, although they remain negative:

• Q1 2025 Gross Margin: Improved to negative 97.2% from negative 134.3% in the prior year quarter.
• 2024 Gross Margin: Improved from -225% in 2023 to -114% in 2024.

Expense Management

• Convertible Notes Offering: Raised $1.1 billion in April 2025, optimizing capital structure and minimizing dilution.
• Cost Reduction Efforts: Focused on vertical integration and lowering the bill of materials to improve margins.

Significant Financial Events

• Debt Management: Repurchased approximately $1 billion of existing convertible notes due in 2026.
• Liquidity Position: Ended Q1 2025 with approximately $5.76 billion in total liquidity.

3. Management Effectiveness

Strategic Decision-Making

• Product Innovation: Consistently introduced new models like the Lucid Gravity and advanced features to maintain market competitiveness.
• Global Expansion: Expanded presence with new studios and service centers in key markets like New Jersey and Europe.
• Partnerships: Formed strategic partnerships with KAUST and Graphite One to enhance technology and supply chain capabilities.

Capital Allocation

• Strategic Investments: Focused on expanding manufacturing capacity through acquisitions and partnerships.
• Financial Strategy: Raised capital through convertible notes and public offerings to support growth initiatives and maintain liquidity.

4. Key Quotes from Management:

• "We're building more than a car company. We’re building a technology-driven, capital-disciplined, vertically integrated enterprise designed to lead in the next era of mobility." - Taoufiq Boussaid, CFO, Lucid Group, Inc.
• "Lucid Gravity is truly the first SUV that does not force customers to compromise. It brings together a previously impossible combination of attributes with the interior space of a full-size SUV, the performance of a sports car with supreme comfort, and an EPA rated range of up to 450 miles." - Peter Rawlinson, CEO, Lucid Group, Inc.
• "Our Q2 financial performance reflects the positive momentum of increased sales of Lucid Air and the results of our cost reduction efforts, which contribute to the journey toward improving gross margin." - Gagan Dhingra, Interim CFO, Lucid Group, Inc.
• "Through its strategic investment in Lucid, the PIF is not only advancing the country’s commitment to sustainable energy and innovation, but also propelling it towards achieving the ambitious goals of Vision 2030." - Peter Rawlinson, CEO and CTO, Lucid Group, Inc.
• "Cost optimization has become an essential part of our life at Lucid." - Gagan Dhingra, Interim CFO, Lucid Group, Inc.
• "The advancements introduced across the Lucid Air lineup for 2025 further cement our leadership position." - Peter Rawlinson, CEO and CTO, Lucid Group, Inc.
• "Lucid UX 2.4 introduces an array of new features and improvements to make every trip more satisfying." - Dr. Jean-Philippe Gauthier, Head of Software Engineering, Lucid