Lucid (LCID) 1 Mar 222021 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the Lucid Group Fourth Quarter and Full Year 2021 Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to Lauren Sloane, Investor Relations of Lucid. Ms. Sloane.

You may begin.

to Call. Fourth welcome Year and and Earnings XXXX you, Lucid Quarter Group's Fiscal Thank for us you Thank joining today.

On the and CFO. CTO; our CEO call, we have Sherry Peter House, Rawlinson, and our

after the are Both on our release and earlier posted filed was of market XX-K were Our issued the website. close today. earnings

future some initiatives the particularly and are we the those as events Act Before that future started, and company, made of information statements financial have XXXX. the within Reform want we Securities our get of Private industry include the regarding company trends, on other emphasize performance the Litigation we on to of this statements based of forward-looking call, meaning that today of

could we ended Forward-looking other filed XXXX, from SEC risks, on the Risk to statements XX, are you discussion to refer Factors risks, of other subject as language Form that actual expectations, uncertainties be in cause to differ December numerous included or and uncertainties the factors such to and as year cautionary factors. results annual well with a in filed fuller our other for XX-K for report the and documents

a required during except and of expressly to otherwise, the as speak call they are result new or otherwise obligation or time alter update, information, law. events as statements, made, Forward-looking only as disclaim forward-looking made we statements whether no today's under obligation future are of and by any any revise

cautioned on forward-looking are these statements. You to place not reliance undue

the section go financial appendix of this versus turn press in is information a afternoon as earnings and I'd to over release Relations and available available measures Peter, use CTO, discussion non-GAAP at investor our why during and in please financial to this our issued ahead. addition, our Rawlinson. Peter regarding non-GAAP A In of GAAP currently as will earlier like non-GAAP make CEO call. website ir.lucenmotors.com. to Investor now call Lucid's we reconciliation the in of results And of deck well reference management the measures

We're in and you, the XXXX. update to on you quarter of full fourth tremendous year progress Thank for Lauren. excited Lucid's the

quarter, world's deliveries EV During advanced reached milestone sedan. commenced the of fourth we for a customer most We Lucid. the significant

to experience. but build human As in have this over designing and and to inspire as XXX we to included quality, of These to delivered XXX given could sacrifice Air over supply validate accomplished XXXX, commitment of the hands, now building energy these, of backdrop the Indeed, while been sustainable supply vehicles XXX year-end deep in customers' And cars of chain our adoption vehicles on the to quality not centered customers. of elected extraordinary produced chosen we an first around against have today. mission the deliveries We total unwavering we electric our standards. faster, deliveries Lucid captivating by highest challenges.

that be X update software. vehicles to done. that's about to think order, of the While distinct separate full a stress to delivery EV back to into right, journey. onboard the including of the very been From we put which the represents critical support, over-the-air it, first to the own powertrain Lucid first after-sales its When ever factories you production real-world Air production, is part the step in reservation important of believe I first both the our delivery and and also across testing consumers and cohort it customer of and cars time

step create build between longer from mission our artificial the there production than ever road the AMP we having achievement. can growth. doing future thing. way from X beginning all and in Starting delivering is site parallel been quality significant great was choice confident customers tracks at on run and foundation producing through And and down a we're a extraordinary on to little car ramp then feedback an factory, we proprietary positive. and our long-term this, where doing concept our we has simultaneously able that our business were powertrain building the of manufacturing, and our one battery assembling worked to The to no moving in initial packs to So at are parties scale and reality and fully a an third resoundingly more things which a right

experience, So our call, posted the continued and the miles. we've of Reports, time of Journal, Car I Buy been have the driving to named had Car real-world Lucid a accolades. XXXX EVs look of at industry driven encourage their any many best conducted is for efficiently the you ambience. a the the then, Air Green EPA And range subsequent the EV. customers Air coverage, of also engaging build, MotorWeek Year. XXXX Lucid that range and enjoying at longest Air XXX-mile Award quarter, driving addition Best ever car steady that MotorTrend interior Car by miles the relishing a validate Lucid Green luxurious of our Dream just Choice EV to a by Year Since with their are the they New the the whilst Car online. praise Best to Luxury which named Car were of the last up has dynamic The Driver's in We Green saying XX certified XXX Inside per at to XXXX quality rack XXXX end test is the to hour. take At

replaced available the of minutes. And have just in the XX EV XXX we've capable miles with to anxiety told as we I New York range recently Times, confidence. verified charging addition, charging In today, be range fastest independently

all to that note, here. too Now emphasize which been a long on I overlooked has do want point

hardware efficiency appropriate per and company hour metric And efficiency Our to in-house a miles much a company. are is are in-house believe much and as for an our as our our truly valid hardware. transformative due as kilowatt software range this. as I We becoming software in

in these metrics hands. customers' most reinforce our efficient a is this point. world Now is market, real And the that the and in in powertrain critical the

enabling Our miles battery products particularly range. future a from maintaining is for for will Lucid shrink Air highly to And enhanced whilst sizes this the pack smaller variant. advantageous competitive us more a size, allow Pure technology,

demand All products. of to this is translating for significant our

representing mid-November. today, reservations reservations of we As from our had over for Air, Lucid XX,XXX XX,XXX XX% a in increase

our book addition represents higher-end was sold our mix completely products pure Our through and Air oversubscribed reservation The trends out. Dream healthy Lucid is from model. our to a across heavily

we're best to see to address how highest our strong performance demand. And continue this across demand We actually, product tiers. considering

the gratified of certified demand industry products, cars and recognize range, quality exceptional We efficiency. customers with that the unmatched performance are we an our To address exceptional our and for leading, rising mass handling to is are Increased our drive essential us. to facility customer production our for and working actively appetite in manufacturing Arizona, expand imperative for vehicles. capacity X. meet an AMP is electrification This independently

$X.X as for Industrial over location a in Lucid result years. progress will of excited facility continue produce manufacturing benefits ramping footprint, Arabia, financial to world-class collaboration. manufacturing the of on are this manufacturing vehicles billion Saudi first of Lucid X. the the of up manufacturing game-changing our our of KSA of addition annually We the Development up Fund, the Economic feet international million of capacity discussed plants provide We Abdullah And facility. finalize Phase also up King part good XX square estimates in of Ministry selection appreciate factory first The of capacity. to Saudi we to Saudi center Investment as And production as City ability This at a X.XX announce its further to XXX,XXX full plans new Arabia, may with the the and the efforts will we to make details. to international that to be Sherry today,

XXXX. transportation begin ground the production indeed in by introduce allow the energy. ambition supply people many and this facility to more transform been to years, that impacted KSA electric to in most has and shared look economy us additional sustainable to thrilled our challenges. expect be enables We our world's vehicles immediate will to and and like the are production of more further collaboration continues coming shortly to advanced the breaking manufacturers, We forward the term, In to chain the to markets also us

from to a release Air for you today, of As range our production XXXX press we to vehicles. Lucid saw outlook have XX,XXX updated XX,XXX our

significant As integrated us a vertically company, and our foundation advantages. engineering gives technology

disruptive. proprietary designed for We have internal quickly approach business, and managing constraints clean automated availability without pivot control pack we've manufacturing. we is have have able if scalability over adapt hardware, to components software holistically a battery been of combustion-based of legacy a been And and and technology because certain sheet of both and the the powertrain

on chain parts our some the able not in suppliers. we teams our logistics could are suppliers that ensure supply example, manage with in visit insistence In partnership our quality an shortages, As have chip highest and alignment tooling. the components issues to cases, engineering that pandemic person been issues. and the from experiencing to our we specifications on meant shortage factors including The

months will we're these opportunities In back second been adapted like further affecting believe switching XXX and semiconductors dual glass logistics. are Instead, further we will capabilities, by cases, these it's bottlenecks suppliers As our like we has source some and our critical to additional many not approximately in processes and with to or of batteries. handful move supplier issues. if opened experiencing few travel production are issues our impacting up, to source carpets, We're indeed that items supply have improvement the and specifications components or evaluating commodity note I vendors the past key changing our efficiencies. augment chain are single able in a limited drive next our skills only to we've address We continuing teams in-house needed. or move of and the been refine quality in half. and

improve will in recently supply Indeed, our and help Management we optimistic brings manage in Ralph veteran arise As Jacobs, the to our that to automotive team over unexpected current we that President Overall, is a are we and to possible we as our as that None is manufacturing augment existing of a have experience industry, know while team experienced launch also that of issues our Volkswagen, we priority future. this will shortages an Vice gain team. the are quarters, continue in place including added of the scale. Audi coming we efficiency of them. and And decades alongside confident the Program spearhead leadership right without start-up, to and the ease chain. in efforts

over not and we scale as consumer timing be look means the and car at significant tide and further inflection adoption are odds. electric Bowl The to our ads of electric turned, GM vehicles like investing to by they're build planning capacities point We X few next efforts terms need first all market the simply whether to heading, an electric. We sums automaker. entire all-electric for of all years, Super where to all than Bentley know be of the legacy become interest in EV is it's the vehicles, going couldn't those One has EV which started in better. our that XXXX, Renault-Nissan I

first As one the and we of at mobility customers' are cars the in Lucid Air into significant the most dream generations. of ends, addition put transitions forefront we

Now EVs equal. are not all

opportunity as the well the the is years And roomiest global are exterior in well our for in and supports to ahead. an the interior we interest growing the efficiency target size. an greatest enormous, technology with market expanding of EVs, footprint Our positioned as

hope all and attracting by early traditional luxury one products stop seeking just car see close learn and of you'll consumers studios focused also but indeed consumers of performance not are you already. to on We EV more adopters, if I sustainability. consumers, haven't our up types our buyers,

our our with As ahead, planned studios Middle Europe and first East in to are year. to open we expand we look continuing this retail later footprint

In development progress are our addition, models new the making Gravity of we in SUV. such as

now combination sheer of We engineering of to and In I'm from we and the break to which gravity have gravity, us as continue to time make products earnest Air right oversee is I new also to help confident personally best its and the by closing, excited increasingly half in growing development XXXX, continue outstanding Gravity sedan our begin ensure as high-quality product We in provide practices to Gravity and our potential. interest learnings I'm continue our commitment electric market people, of becoming to funding and to ambition implement additional disruptive expect experience for launch. ground the first first in in meet vehicles. large standards. technology, the This the our will production category. to will

of capture tremendous balance a growth business sheet position and cash to ahead. the scaling strong a and our to support have significant We the

development consumers' technology We was only our EVs. new great lead Lucid. have of confidence at expectations that great that in XXXX time, of we're year products getting same industry will And the a for will redefine the started.

frustrated what never that, I'm I conviction the financials. has our we While logistics we've chain achieved an Sherry? we've that in date. experienced, been by update everything setbacks turn for certainly of greater. our it to And Sherry have and our and points team been incredibly and proof accomplish that over proud can with supply let on me to

opportunities. demonstrate the our QX Today, progress Peter. model in conviction future I'll in and you, Thank share our our full business results, year and which

financial business of a which is our critical in XXXX in establishing foundation our the mentioned, operationally, reflected Peter As results. year was

very in to excited deliveries have fourth are We started quarter. the

including was October. revenue the which Edition, XXX at million, $XX.X QX Lucid initial the million Air from began $XX.X Our Dream deliveries in

We from revenues pack million from sales $X.X Formula racing also recorded series. battery in E the

the and delivering were Cost while additional in vehicles this of QX. of up commitment costs results standards. are future quality steps direct to investing handling, Our estimated to a These represent part possible and revenues costs. the substantially production. our meaningful the number We Launch at, in manufacturing reflect promise highest personnel shipping brought inflection quality fourth the in the million, we and production were ramp overhead of beginning warranty scale includes $XXX.X point materials, company. parts, to which and in quarter

to increased We expedited also chain disruptions. supply logistic experienced due costs freight and

As realizable to value, of $XX.X inventories to an fourth of we the costs, the sell. to their a less recorded increased result these in impairment In charge reduce cost million net quarter sales, to in negatively overhead this we lessen we impact will ramp impact though as could increased result production, of expect over time. charges freight XXXX, that continue impairment should and cost

the December $XXX the down an to in P&L, we expense on million As also warrants. private incurred related on gain further item noncash XX, the mark-to-market

which vehicles. Our and of in million, the Project on was are Lucid our primarily line R&D focused costs future the Gravity in development generations XXXX with battery $XXX powertrain and Air, These of electric efforts totaled technology, the expectations. our

We our leadership. will in invest continue to technology

unique As maintain that combination to more it's we hardware competitive market, and software critical delivering OEMs of Lucid bring EVs sets our that by apart. advantages a

expenses and service North and million We SG&A and opened Middle centers systems. network comprised personnel QX we and Europe Our were $XXX build growing international costs to our service e-commerce hired G&A X of as in for studios our the and investment and business along retail to in other sales of in with studio America, part service XXXX. global related out prepare IT additional the have East platforms,

new physical out quarters, we and Over continue customers our with the to several transact systems core build in digital next direct-to-consumer and will business countries. to infrastructure

under agreement. the Additionally, including vesting million stock-based $XXX QX, operating equity the expenses CEO of were impacted amount compensation by in in award

retaining of talented Director, attracting multinational and in that Financial experienced team finance. decades additional this March. of experience strengthened vest Dhingra Gagan of be Vice CEO Global wave at in be in our public and to under they hires strategic Mustally is with and functions and We want Services. success. also and that of our Officer; Accounting will Principal agreement We've expect of transportation Treasurer and equity accounting Hussain award Accounting accounting the leadership to appointed financial Managing early Internal Together, building companies, bring President leadership and people shares key will key We part Controls Head as new

to across in we in personnel company. invest operate systems. we a Lucid labor talented colleagues to despite we've organization. public continue team market globally to hear and the create able in constraints generally, best-in-class theme is been results, as as add infrastructure levels large the throughout and technology, as effectively financial This in processes, to necessary a you and Overall, XXXX will the our scale the and to reflected geographies So far, continue

with business, strategic XXXX the for the increasing prioritize growth against we stage our objectives, demand in commensurate we've executed As scaling our the another Lucid surge strongly setting Air. for

we you to cars well third-party as heard We've prestigious from their reservations and as produced have XX,XXX vehicles total approximately and great received feedback of today. from accolades delivered our As XXX Peter, successfully customers, increased to XXX our multiple as customers perceive to over cars.

continue We see demand premium strong for to products. our

Touring In demand $XXX,XXX our model. than at lower-priced fact, higher even the for Grand Touring is

With Trim estimated $XX,XXX the Air in also the of less which We reflecting possible. for have Pure we targeting accelerating reservations billion, of impact after plans are as Lucid more than $X.X growth than of consumers incentives. our increasing tax at seen price the quickly our for U.S. a for as we're level, revenues point reservations

of the Our the retail XX and new in service by grew studios year centers XXXX. XXXX, locations and additional our goal footprint we reached significantly of for planned opening end with

strong square seeing in AMP II location include improve we're helping units increase center online progress Arizona units X an from X.XX the XX,XXX is goods to of in-factory the X feet, capacity Arizona, late powertrain with our addition, logistics another additional of million which relocation an stamping X, finished XX,XXX in efficiency. In to expansion and our Phase Phase total to XXXX. to our of and assembly center, will speed on-site thereby overall the in AMP from facility coming

about ground-breaking and additional to to the made a our we to Europe. sites in plans continue possibilities manufacturing new in we In explore China today build announcement, addition facility,

interest reflect products are efforts seeing our world. these underscore of All for our and ambitions around we the global the

been risk we across companies help cash of reduce lead to on to In as use This now time. industries mitigate and items existing we've as and and executed manufacturing enhancements of by we cases, collaborating heard the have these to them As the a when and needed quality, suppliers switching in will including [indiscernible] able through multiple challenges deliver, situation, be shortages. season. suppliers supply a our managing Peter, year's deem we're the we these chain not throughput are year buying to deal to experience Lucid, resolve to be options in more some numerous with issues, cannot right best in-house. At mentioned satisfaction have In there suppliers issues. of about ahead that parts situations the approach you've and some all improve bringing if the executed with current are effectively coming the than resources require necessary that to

Our advantage. holistic key to approach X in Phase AMP become the And is when competitive us X nimble online, even a it more will quarters ahead. comes allow

NASDAQ As Building a market in successful upon Lucid's asset. is listing of global We our strength XXX bonds in December. we $X we on consider also December. to were leading sheet the the issued billion in selected NASDAQ, opportunity, convertible green balance our

As year our successful billion funded which we well a into XXXX, the with ensures hand, XXXX. cash result initiatives of are we $X.X ended fundraising over on in of

options estimate successfully to our XX,XXX in opportunistic foundational multiple accomplished build for the of recently, will everything range suppliers analyze represents we've our approach improve place in plans in scalability production have core pillars on invested promise on to ahead. our for updating massive in, our enable internal solidify to with the execute our own investments chain, $XXX bottlenecks infrastructure with in these In to all, our the our our CapEx us financial XX,XXX of the outlook as and and we to logistics. in discipline as to further as relationship execute be deliver on a turning as position, opportunity sheet the help exist we XXXX elements continue All and vehicles. where XXXX well the will are to electrification. and million plans the central additional supply Now This and We We're growth we projection best for to guidance. which have future strength to still funding our market. we Balance

in to remain the and months, chain business half parts constrained coming of We expect project of select improvement the the in the year. second supply in

support operating our investment vehicle As we and as continue to planning expenses see look in the year, we our expect operations, investment to business in for as functions. our well programs at retail

a capital into includes also $X facilities entry markets tooling machinery spending service and our development, be and compared We during technology equipment domestically well support XXXX nearly increase software our anticipate and represents to network as supporting investment We and the and of and as as both associated retail we business. will and billion dramatically our internationally East expenditures investments. in manufacturing XXXX. which scale to Middle our range in work the in Xx This European XXXX, to

Peter begin to with mechanism will In today's our right just this in Technologies act from be questions investors to will of this during a of we a to and before and later and one the volumes other base. higher make November we opportunistic that State our business the starting Today's aid to call our questions to this include that, those the consistent back turn with will other of products of make here. We're the they in With sense I'd platform, to are excited that believe some the of retail as With year, with have remain will questions confident part to still comments accelerations We're We to on them succeed. positioned like closing, people, to introduce projects fielded well the starting Thank Pure shareholder year. electric moving in In considering important call. and as are trim address committed higher We tiers. you. production scaling. winners. moment, Peter. commitment the from final vehicle mind, and funding of products of emerge of we model and feature the portion production we of revolution some which technology, to the are trajectory the will early lead Q&A innings our Q&A

in And we're Sherry. still we've I the is months. of how accomplished it's so much few by by energized what past us. you, ahead why opportunity hope clear Thank

it with of looking to continuing And me your forward we business. to questions. dialogue turn our to as build are in the the months ahead back in get let Lauren that, We you momentum all with

Thank It now our is session. you, Q&A Peter. for time

a we investors from questions will taking questions submitted We few received start the technology on by Say who platform.

post our to discussed directly and this management we topics have our felt to We address shareholders team, were enable have questions prepared to platform in questions chosen we which implemented not remarks. that

from We questions research related is mind will to forward-looking take also retail we received Tesla? question compete our the our from first strategy. And in competitive Do investors any analysts. to strategies Lucid's current and have with you

point really that's directly companies. in fact, ourselves we Well, a fascinating actually. Well, see particular any car don't with competing

goal We best and to very is out very straight goal Our to make world. best make cars the the the electric want in my cars.

with proof the Lucid of I Air I is is the to and are the of inspire that Our the points highest believe most certified we energy. that believe product that the forefront EPA. efficient range in the adoption the sustainable mission best technology at actually we're the TV by have world already.

have high we're because really the confident and road state-of-the-art. that fastest are me these advancing product we the can real-world And validated the map. and customers. third proven by what also most voltage, that I is outside know charging. We a I'm But excites do parties

product, me, product, product. For it's

is question next our And chip Peter. you, is chain How related. shortage? Lucid the supply approaching Thank

Yes.

with issue mentioned really And is to reasons. a semiconductors. Peter his several we've for As in prepared this experienced date, gating not remarks,

not of base electrical Lucid certain talent, using in critical close adjust our to we risk. that business printed to surfaced, market where many second, designed mean spot circuit Hence, we and able promptly, with and when our I secure the revalidate designs First, head boards all periodically shortages, these And and makes existing resource we engineering we of our and contact are and hardware a to purchased any largely significant shortages sense. do leverage have been relationships. it good in-house. we've our direct understand supply stay has at chips

situation, purchase does sort expertise of But XX-week semiconductor is trial required approved deal leaders. matter chip recently, and a is the challenges evolve. to really a just record relationships manage positioned to continue I lead actively to that a it This shortage listed direct of ship with time. the many fact, deep In with process because the well not enjoy that subject we these of and our

you, Thank on our And Car Apple the Any update Sherry. discussion? next question.

technology number nothing the or I've question have point. discussions Unfortunately, times other I Apple say, potential provide related do to of we But of the any past. for Well, connectivity, been efficiency, said, space would I mean, the of always and attraction a I in recognize with partner as to to open other we're discussions. such our sensor such this and our to partnerships attractiveness that it product asked this companies our relates vehicle think in are in-cabin the at monetization for suite or significant points opportunities. autonomous we

our I developing the huge And a Lucid of computer software wheels. we are on in software upon that of development Air focused past open-minded significant digital process partnerships. companies and recognize Apple been very the engineering remain we're on part potential We leadership excited as that. take year, We've as a that technology from disruptive other in think to and front, hardware really about we brought leadership. for creating this we much is in

We are Murphy take John potential excited I this of Bank question for now from open-minded a on with about front will partnership. remain and America.

have I ones. X just quick

see. order And could maybe might kind about be short-term your of we of some there rank other pain term XXXX long-term think volumes? maybe does long of just term, the about volume near the supply capacity you has production the reduction that this year, appears outlook also citing wondering over you're this in change as micro issues the this sort planned benefit put think that of expansion for those some mean, and causal those for Or you of factors gain? forth your It Peter, First, can't I'm if for ramping chain. bucket I reorganization in for or we as and or in the then is this, the impact. been prioritized sort in

I Those XXX small phenomenon been been interesting of got been mean, supply parts. about say a suppliers of a we primarily And first X,XXX a that all, points. have mainly just really impacted about of constrained. worldwide, We've this has suppliers. in notionally I commodity XXX we've Paradoxically, handful are would parts. our

example, exterior, parts even for glass trim and parts, For carpet. the finished

our So here. chosen want the we of been quality of numbers. right, sucked have plan. you're We're that short-term in technologies the into build it's some that largely vehicle building car, us not brand myopic we've We really view quality over of been grateful have And built we've customers -- a the volume. quality. get the impacting don't a have to and with XX-year core our appreciative And

prioritize we quality So over numbers.

is produce and For say on though following there, enabling a nicely up Airs to within bit end that guidance supply that by provide context What can XXXX, XX,XXX tooling to chain to for of be the to coming factory us for more we X, experience in the QX situation we is just we'll is that -- as the will as Lucid and we doing the is we phase are XXXX. able share dynamic, quarters, the and of sure. of be quite little and

production. bringing have do on are that's we we the tooling -- to So of availability going enable ability continued this to

to by their processes And with quality support our mitigation, risk and expectations. up particular in line we're Exactly. John, bring way them to of supplying suppliers some

instances, new the manufacturing a quality suppliers. control have we're bringing and actually that of actually allocating And we processes can some we're Some in-house integrated vertically in volume. supply and so to

to Or are should funds helpful. investment incremental will expansion, to just in addition And the addition, very to but that facility a Arabia? second fund Do just key in public think be I'm you more would lot Okay. of there It of sounds the Saudi the standpoint, your curious facility. or that you question then I so put financing that funding Saudi like a say, internal come diversification be what expect have? in. even willing component the around a just from interest capital might expectations there. their from do you the they able be capacity That's

$X.XX balance with in year billion of all, the cash of Well, sheet. the first we ended

us in that into So XXXX. of and really itself well funds

could look cash able use. XXXX, And It from we mean forward us as the have for opportunities of move these markets, plan be to see capital. we with it we debt forward come here of capital governments as our could many in I to we be business leverage or already funds. equity. launch we to that tremendous plan, the come number a available So to whether efforts from just now, sources to right

really going in for the interest that opportunistic efficient. we're at going cash looking and the be of shareholders. So is look to be to what's best

Thank you.

Our Citi. comes of with the line from Itay next question Michaeli

couple questions. A of

year. in have expect Just you going first, Maybe over of chain the in talk to of production throughout can of I visibility the of much how you just the hoping recovery you back it about how supply think degree pressures. the cadence months the with to second half and confidence you of the sounds the the improvement year. few most like some articulate about maybe was of the to next mentioned suppliers happen

Yes. the Well, challenges. supply on in to see But year. them an for continue second some of months. have We chain half we of focus the the next earning the uptake see addressing few an we

car we're particularly So handful suppliers, things And talking absolutely suppliers. you fundamental this largely unless to about that are parts We're to technologies glass commodity -- here. that. going And is optimistic quality not a able talking sell resolve really carpet unfortunately, like those these. a can't be again, and of visible paradoxically those small finishes, perfect. we're single We're

resolve, few second months, is uptake. And significant half based that our upon optimistic take premise. very a of we'll and that we a to year, the the will we're guidance it's but going see So

comment helpful. reservations. a the Peter. where XX,XXX-plus on can demand just you quick some And will most around of I these breakdown, regional Any vehicles additional helpful. you're know kind the give don't which of on seeing a holders from. coming That's more follow-up are very coming you detail Hoping other be give or incremental the of from. kind can segments, context if bit reservation

we've got time Last over XX,XXX we we over XX,XXX announced So announced, reservations. we mid-November. had

that's uptake. So well XX% over

Europe just is And that haven't here. this a reservations the mix for we think and really market this are have home Lucid is that, reservations U.S. reservations here is And Middle for the we our opened The I that to East. America, only in of Gravity. North our those is important share in opened Air here what's fantastic recognize lion's also,

And looking how mix was between I for Pure Dream out, the say, sold Of the models. because Dream of the is Moreover, healthy we've higher and excites year that this end Tourings, before orders resoundingly year out that started edition course, and latent to address something sold so are we this can making at really Grand out. demand coming really a We've we edition should end got our products. of actually me Touring is reaching actual those the later there

you. Thank

Our of Coldicott with next from comes the Redburn. Charles question line

So my first for question Sherry.

thanks 'XX. for have to year, some spend it billion spending. guidance nevertheless, I a So the I a billion, that intending stage like And further accelerate think million then last mind on were plan the year. CapEx, acceleration. raise you to one that this of July, $X feels in announced $X at you in in But $XXX

talk I'll So with is a and should about that Yes. additional from come start going benefits it? can that you that. spending to Maybe little where the us bit

ended course. wasn't June of $XXX in it to were Actually, some out a that Yes, being of quarter. million just And to is we CapEx. that payment the about shifted that anything CapEx was in we $XXX and closer XXXX, up of did It's spending up we ended In million planning before delayed. spend XXXX, by update.

now that essentially moving of So XXXX. million is $XXX into a lot

base increasing higher in seeing believe, XXXX, is $X.X that billion And that originally amount guidance was It you're than XXXX. the the that. actually, amount closer originally. our in was, I to prior So

million. so spend, increase talked had we're with to the taking and it spend, And XXXX an press earlier years the about in of then bringing from that overall X% XXX moving million we might that of some $XXX 'XX June And in into the now and as X%. you release, recall in with CapEx

that you're this you're of seeing from happening. shift different guidance before, really, that we So kind seeing not that's anything provided

around are Okay. it expect materials. logistics. maybe you seen what price wondering offset of mentioned Obviously, I'm impact broadly second And with some of any sort that it more inflation, we've my you or input all intending from maybe cost raw we Wonderful. should this And from year? to question, rises?

continue Yes. something may we're Like study that be many of charging. of increases are just the these to making future studying the may value business it there to and customers there, and offset OEMs quarters, that's context to the also opportunity make going that to we're we're sense we in over right And some providing of price potentially but the definitely price sure makes then. that the good the now,

that. So more We're analyzing it. come on to

side, we this continuing well Air both On C. increases the in cost logistics cost do and as as see Land

to the our Air And high trying the stabilize which there, our part some are as we're moving our bring of and what costs But regardless. of parts we're out some to actions despite to move so of down of to of early launches do more starting will C, from costs.

due do just sold. lessening it's year end we're do margin is to these see So planning cause as anticipate impacts taking of -- goes us and going through actions. that impairment gross up expect going and which chain the further high costs, and within to to cost to we XXXX, mitigating the lots we logistic charges cost attaching we negative the going itself is see to that these for But to inventory supply we that, and by, result issues, XXXX of are still goods throughout

aggregate And As analysis at that on getting some looking them how the oversee of I shipments. looking channels at air have, we like moving mentioned, early to components, sea. things we're from shipping that can we

works are the actions there. in of lots So

the question Guggenheim from Ali comes with Faghri Partners. of next Our line

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on anything XXXX more a bit specific the that makes take Gravity And pushing there color the like most be launch think out being prior, Great. is seem could production SUV supply like to since chain issues the out longer versus on the should now to us highlight in it's SUV you're of transporting. does of provide at you it production get door now I the why you you'd going then point? this launch XXXX feel expected impacting

exactly. Yes,

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the the Lucid have product embody core more before. has an which of luxury We compact practicality, also more to productionalization going Lucid program, what those done DNA, space, on a space SUV, inside. efficiency SUV, going ultra-high more concept. to transformative want the to integrating feedback nobody of outside, which DNA, on healthy the integrate And of to is into lot from learnings And have Air the we're ever going that loop that have a We're learnings.

platform. expanding charging of through the terms And our plan take next and Technologies What's we Say stations? investor will in the question future sales

are support customer interactions product Yes, in retail from technology and actively Thanks, our over-the-air our service and that's and their service. with thoughtfully customers Lauren. our initial And center -- all throughout the and we journey. through discovery post way investing sales and studio updates and footprint. everything

locations studio disclosed, the As increased service footprint we to end XXXX. XX of and by have we our center

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the longest and fastest vehicles. have fortunate we're to range charging the off, the charging first front, On

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us to so also the of sector. going benefit all EV And in that's

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technology last question Thank What see Sherry. platform. the are plans company? in from years? you Say Lucid for the we XX And you, next where take will Great. do the the And

laser-focused on Well, on remarks, that. And as right the ramping achieving on delivery focused discussed just we focus up in previous targets. team, and company now, is we’re production a we’ve our got laser the

reservations, that XX,XXX been customers As what we for just by seek placed have now to listed fulfil is XX,XXX air. the over

half As X.XX in AMP in expanding first footprint to we’ll later how on So we’re year. that, product Arizona Then in our grand AMT second our Arabia, That’s annual we super the Gravity. discussed, on is started an look in that’s a got the industry’s place. well, already to sedan, touring expansion the Pure form. and continue our Touring Lucid now our one X, and on Pure. taking most on Arizona, will overall, I’m the increase going another the It’s through its affordable our achievement our X. and be we per and version is add excited the per for capacity EV about about that factory, this customer next And schedule And Kingdom is deliveries. for X alone And through But both building to That annum. Lucid this excited add assembly we’ve And company. got late phase Saudi our ‘XX. footprint have track significant in this first is manufacturing disruptive I’m now be. will to leading we in at coming XXX,XXX-vehicle annum addition, site year, of million production really our of XX,XXX then for SUV vehicles feet purest out and Pure overseas. we’ve production of up production as factory Air square will production

the to all-important helping to us a are our suppliers, wrap to just going But step tremendous say I’m as Next like realizing to interest this I’d course, up, Scaling, a in really of helping to ahead our is EVs in few our the employees, all mission. stakeholders, be inflection scaling. is just our product is how it’s investors, scaling. race. technology a to words, product. grateful opportunities Product, about guy, scaling, partners And the and for And consumer scale, this to capturing we progress point. scale, for This reaching scale.

this gentlemen, and concludes today's participation. conference your Ladies you you. call. Thank Thank for

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