Lucid (LCID) 5 Aug 242024 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the Lucid Group Second Quarter 2024 Earnings Conference Call. Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to turn the conference over to your speaker for today. Maynard Um, Senior Director of Investor Relations. Please go ahead, sir.

to Second welcome Call. XXXX and you, Lucid Quarter Group's Earnings Thank

Officer. me our Interim Dhingra, Accounting Rawlinson, are CFO and Principal Joining Peter Gagan CEO today CTO; and and our

the on expectations risk factors let and production Before language our the performance and me outlook number of our handing events and future to statements and macroeconomic on most include laws. financial and actual federal in call and of a industry deck the X with financial Relations Page trends, recent statements ir.lucidmotors.com. forward-looking this over or our website operating to based section limitation, These results on of the the risks predictions to investor We SEC include, statements remind that available without delivery some at and cautionary call volumes, of differ you guidance, of initiatives Investor events. our of on under securities uncertainties. company, other and due and as the forward-looking may the and . These Peter, filings statements regarding are today you statements company the future refer

as of measures and our make earnings during non-GAAP use results addition, as in available of release the non-GAAP non-GAAP well is regarding In in A our discussion press management earlier reconciliation reference measures to why information this will investor financial afternoon this we call. financial deck. GAAP issued versus

call ahead. CTO, Rawlinson. go Peter turn that, With and I'd Peter, to over to CEO the Lucid's like please

earnings on call. us for XXXX And quarter you, thank Maynard. Thank everyone, second joining you, our

suppliers I'd all you heartfelt employees all before as well partners. get to remarks, our like extend to a my thank Now I to Lucid as and prepared

of year, second of We great investment partnership towards the the Through that the executed in to production it not dedication propelling with scheduled of first year we'll hard highly upon small and sustainable company's to ambitious your half also industry. today were look is, through but work. of Lucid, Public commitment course, due half build for agreements PIF and also . I'm $X.X strategic momentum only Lucid and of anticipated. its the progress we affiliate back into the a energy in which generated vehicle electric itself of of underscores the financing and to additional the quarter deliveries Investment leader diversified no fostering announce and the Gravity, billion. start This the this goals in part record to Our in advancing as of a is XXXX. Vision achieving positioning global commitments economy an the their the Fund to innovation pleased

for them their thank to continued support. like I'd

was up quarter, by strength North that Now sequentially. turning up to delivered deliveries. up deliveries X,XXX the XX.X% were a vehicles in year. record in upon increase America, XX.X% The and sequentially year and second We was driven where

Now XXXX. produce turning the we're vehicles vehicles produced in second to and production. track on in quarter, approximately to X,XXX We X,XXX

to prudently production As cash match managing not deliveries. optimize we previously, I've is and bottleneck, production and flow our noticed are to

reaching an June continues metric. the awareness all-time brand tracking Lucid's in grow, started we to since high

our increasing word of combination work building still the science-based momentum. advocacy and loyal Lucid the approach more Now is road do, number the of marketing to but customers on our have data-driven we Airs and mouth to of of

surpassed tremendous becoming in parity class gas Lucid are or the customers pricing. think the even to our ways, many also technology of value aware we've I when and cars in it In technology comes range, increasingly Air. reached performance, and

to electric compared other And this is especially true when vehicles.

Air been car by electric has surprise U.S. as come named the may that it luxury no Lucid best again once So

upon advanced the no most electric maker. row We're a Report. achieved car known third been vehicle. other bestowed luxury has the this. a and that But a is car that company, moving have being award News Air as we're This in the beyond and year technology & has people World we recognizing ever this are

We with the hour element was software the And a after some our I I announced customer's a will am all miles that we mathematical further critical that landmark control achieved per software achieving July initial and a X in greater our Pure, an motor Lucid purchase. in advanced update efficiency vehicles to announce kilowatt with to innovations improvement, Air in the see in this car pleased soon, well expect fleet over-the-air bringing coming value algorithms.

of have a will sedans design. and latest XXXX advancements Sapphire pump the heat also course, Air in motor

collectively the continue Lucid is new EPA achieved miles for EPA were the under to a range kilowatt obtain testing this how of Air hour we'll to able and estimated X we a stringent miles And Air Now Touring and per more more value. with features Pure. Grand XXX provide

significantly it's hands-free system our And driver curb enhance ADAS. We assist, assistance and the assist assist, software change are will that more. introduction including over-the-air advanced or lane an rush planning of highway update

comprehensive further think have are going to customers our plans enhancements, new the interfaces, delighted. be app many on aspects of for user really a interface user making push new I update experience, We big We're to also software. functions a and

market the making largest in Air share outsold in Lucid in U.S. making our dynamics, set market improvements brands of inroads, of most Air. the and industry vehicles. QX, and we with within the market, Yet competitive storied again, the despite electric gaining many So constant are the

preproduction a I and from in In And this the Grande, in late of competitors shell honor conveyor roof key preproduction cases, greater some the down dropped the double. the I first of week, more assembly production run line, body with Gravity, main production Casa last in year. outsold into the production factory large in driving will and Gravity preproduction journey find our scheduled later the And on the Lucid Arizona. we first Gravity at the marked Gravity market. July, our Lucid off by milestone start we beginning SUV the line. Lucid the the just the than our had Lucid growing line of And success This suspect to

unit will will full testing in and Each final to production. used quality be us ensure perfect validation for the scale top-tier process build help

Now September hosting the our and Gravity factory new factory XX to Technology at and machines advanced give we'll the be Lucid at Manufacturing and on a showcase Day look our the also technology build a machines. you closer the where

costs, to significant and that made drive advances show can't We've will to I you. the it help to wait down factory

how that one given go as is market. the interesting. which be It's understand damn quite known battery, broadly amount Now I'd it miles with something the may like may still efficiency so many to concept many may of can be why a this Whilst energy now efficiency appreciated and critical. means by emphasize well to not not of

that's Some the might But me that businessman efficiency. in of story. actually, it's the believe engineer the of in the it's importance efficiency driving me the driving narrative

me materials this percentage be database, is even materials the is make amount energy of battery a given can in efficiency, the And than So to the materials pack, According in smaller and of of XX%. higher of to AXMACX, because that higher battery cost car, XX% of much matters range. bill an lower-priced or needed the the so almost the cost $XX,XXX the electric why as battery the energy efficiency let explain. cars of vehicle the for to the nearly above XX% bill attributable the a

It cost can it improving the need essential greater is element battery mission. because through when higher start worth This the this gross having a in factor we is energy important. also environment. impact all are this range. our given lowering raw an materials, repeating. The margins. battery fewer we comes technology and of means is which is is the amount to better efficiency, less And not an EVs key And critically And born a cells our this for making life's equal. EV truly to And for a

And technology this access their is a with and our emissions partners licensing of said EV accelerate achieving hard. environment. enables reduce goal I've technology mission before, business the making cleaner really a transition of good EV and our to

rate using many core years to publicly By this technology measure, EV today. the ahead Lucid's take available them competitor would EPA player. fact, of the continue to it estimate data, years operational progress, that at is Lucid match where is if many of In closest its we were efficiency #X

are behind And And further this traditional them. brands car even think you're seeing of play course, the I out.

know-how believe product the and not key yet enabler. are products defines Some Because with brands think Lucid's are before to brands, recognizing of I own technology. I of in it's our to believe heritage is. the just a And their a how time it can advanced be hard technology commensurate market their I the might enhance remember, look of matter car brand. many

increased timing have identify seeing technology. to when point, in a tipping difficult it's While will the interest exact we of our we reach been

architecture. and controls specific or more Now there's computer questions general say, is an functions ECU that been about An at ECU the I a of late control certain essentially unit, electronic car. should our

quite been We launched share technology thoughts And I for Now Lucid access early back electric our we vehicles in this like were and the architectures licensing on some element is very my XXXX. forefront to this in would Ethernet time. of Air because business. Lucid the to has really at here an bringing ring of when

aspects of We with architecture. were programs early Gravity also incorporating Air and zonal electrical

approach interesting where for that you place we'll introduce just which of in-house time. a single our take possible are only reduce some when These zonal we'll clean are architecture have over-the-air It's taken XX others are platform, updatable. further design. And to digits. to vehicle the note have next ECUs We now number midsized lead all the this in getting quite ECUs, we down to to of where sheet

achieve innovations role advanced but because hit in also technology. in improve This further we've software. isn't gone able plays through could been costs Now the of been to unheard that's than software in in-house. we efficiency. core architecture these clearly we've industry developed it's not Indeed, efficiency that. are much We've powertrain of without able at hardware, the But level that a efficiency the just our a pace to and important the helping

that So in by the momentum the encouraged seeing market. we're in closing, very I'm

The and and the the continued our on position strategic I that's progress forward believe us our programs, well the team momentum years, initiatives and dedicated for cost quarters been benefits look we're we realizing coming in excitement and you to our updating for into optimization Gravity in innovation future. and growth Lucid from building launch.

like our it Dhingra on over with to turn to provide an to So Gagan update financials. Gagan? that, I'd

to Thank and you the taking you, thank are today. us time Peter, to join those who

for get to work remarks, start team thanking I results. in prepared entire Lucid by to my I also the tireless Before solid their very would like achieving

results. second financial our Turning quarter XXXX to

X,XXX During to guidance the vehicles, we produce our quarter, approximately second year. reaffirm we vehicles X,XXX produced and this

second the and in up expectations our of sequentially. ahead XX.X% XX.X% were vehicles year-over-year quarter, X,XXX of deliveries importantly, More up

Peter much we to thus mentioned, down the model enabling are we year-over-year production The guided taken and million, $XXX.X the what $XXX.X of revenue we to the with been the demand plan actions was in in quarter, earnings up pricing full the have quarter, revenue more deliveries. We the worked in was hub-and-spoke million. we of inventory pleased in reported approximately quarter, QX. despite $XXX.X to shorter up XX.X% and As sequentially, call times. second with experiencing outpaced of second Deliveries primarily quarter far. last delivery first levels a by margin line flat XX.X% higher from manageable approximately Cost facilitate LCNRV customer while still was essentially the million impairment impact to approximately driven according Gross on quarter in was which

by We our vehicle related of to part warranty special initiatives, labor campaign. BOM a per our a which cost-optimization see costs, provision cost and freight in continued improvements offset as to were inbound

have campaign, gross improved points margin this basis sequentially. Excluding would XXX

don't explicitly provide with direction provide your help guidance, Although let modeling. margin some we to me gross

Gravity, of in components Lucid which in will an result We expect an increase from build inventory LCNRV to the impairments accounting standpoint. for

back factory. expect We incremental in incur X activations Arizona depreciation also our of the Phase the half to in year from

in QX. will margin expect gross We this impact

as we expect the meaningful see lowering bill forward. and of our vertical move we materials from However, benefits integration to

echo key of gross enablers comments scale technology term, be margin. Peter's increased will Longer that would I and our our

with of volume, margins gross will As the ramp key with bill efficiency enabler you to a lower improving materials. see driving

operating sequentially. moving in R&D totaled Now X% approximately expenses. up than million, QX expense to less $XXX.X

half start year, of increase to run-up We expect which typical of to back in new is the programs. the up vehicle production in R&D

QX. professional from in expense lower SG&A down decrease services primarily due $XXX.X approximately other was was QX X.X% million, The optimization cost and initiatives. to sequential

and expenses temporary primarily up We second QX. cost stock-based second studio Although half, ended and with execute we opportunities this due have centers, in investments to compensation service service in and the expect increase satellite identified further growth excluding year, reduction our initiatives. continued to XX higher quarter to XX from the strategic we SG&A into locations,

ended wins plan On worldwide. footprint to mobile with and the shops as which continue to XX We million body reduction well will fleet expand QX service side, cost center satellite locations satisfaction strategically approved grow. of as and to we service We in charges announcement. provide XXX related ensure our the to in force high restructuring we continue the as well centers service $XX.X as additional recent as effectively customer studio recorded

was Our this of half stock-based expansion to the substantially the compensation due grants. expect $XX.X million, in timing to quarter the we expense in new grow second

a million liability $XXX.X and million associated from our In corresponding QX, in change a redeemable fair accretion below and derivative was value The loss in convertible QX net in under loss. with total $X.XX. share gain $XXX.X EBITDA million, other $XXX item share net net loss preferred income was $X.XX, of of adjusted a a stock GAAP was we recorded of per line per loss non-GAAP

balance exploring committed execute to to We and investments and equivalents and financing. the quarter continue total a billion. in strategic healthy to to cash, remain $X.X billion sheet. approximately opportunistic in vision of maintaining Moving with $X.XX balance cash We will ended be approximately liquidity sheet on our the

is We announced via preferred an billion. drought up million additional term after that close Lucid affiliate of placement loan for commitment private delayed investment capital the $XXX convertible of public of today fund financing agreements $XXX and million also with a facility. stock of This an $X.X market unsecured executed made

by CapEx million sequentially, in vehicle last total million, $XXX.X Turning X.X% decreased QX. was primarily to higher up over few in inventory QX decrease the inventory. consistent with from and deliveries. $XXX.X the quarters driven

for delivery vehicles needs. prudently guidance outlook adjust our to XXXX. we approximately will production manage and our X,XXX and to production and to meet XXXX our reiterate Moving We continue of sales

in you a mentioned, Peter also the and typically up quarter for that I remind QX. seasonally As summer given would is holidays down ramps QX industry then

in something So to your consider modeling.

Turning from affilate total XXXX. into billion commitment sufficient least of runway of fourth to give of the expect PIF the us our liquidity we an inclusive to liquidity at $X.X outlook, the quarter

Moving to CapEx.

in of meaningful cost We XXXX our as are guidance as guidance $X.X a reduction capital from of XXXX. billion certain into efforts well updating reflects optimization our $X.X outlay approximately CapEx prior to This part a billion. our as our [indiscernible]

Lucid car turning there's road I this performance, and had the have market get like SUV I tell the on is to Gravity the production sharing today. for for way elusive very our excited recently I'm and the the the opportunity to other in in the production beta starter scheduled about electric perspective, Gravity future. product close why XXXX with to vehicle, late want my was a From scheduled XXXX is and right of you start-up think don't the high-volume the by experience handles platform I gravity I midsized the Lucid late any

financial by the well optimization, progress Maynard let it questions. cost that, PIF from the get are we future. positioned I feel back horizon, on turn With strong for your to and With new to products the to commitment the me

Thanks, Q&A portion the now Gagan. We'll the call. start of

we some from sent technology platform. questions to Before on from through take investors in post retail phone, our questions I the Say the those want

provide you're you information to more Paul costs. doing cut Can Our question comes from first C. on what

reduction expect a positive to announced example, path you margin in For positive QX. and margins? gross Rivian have to your XX% share recently in Can cost

well activity. efficiencies, company, across tremendous cost supplier this go-to-market this. quality is strategies, entire partnerships, the absolutely an on assurance, transportation, vehicle Gagan at logistics, looking efficiencies, amount management, are team manufacturing at And as mean his cutting inventory direct costs, doing looking We're models. key I and Yes. as a focused we're absolute development

to using and CapEx. across our we're efficiency. of on We're it's looking can't enabler. focused and well technology is cost reduce anything more. huge at internal a board. I policies, services also, professional course, mean think of This the I And

reduce could estate millions real customer that we're could not can our service example, efficiencies, but only it repair think It service testing times satisfaction. footprint. improve could machinery across reduce it save also For and centers employee I increase our us

-- and, I could take but in work from you're And course, on. addition, product early working we're think benefit them this, incorporated from heart right from really lot And of learnings in a we've to you learning I progress think significant add we'll a it's But of And other. Lucid Gravity of see the transition the great we Gagan, made this, progress. one that please? the a to the Air into at

essential Lucid. Cost at Peter. become optimization an Thanks, has of life part Yes. our

First, of bill bring materials, launched OpEx a similar we double-digit then CapEx. have around in implement plan this we part we and second with costs we I to by revenue, cost are cost cutting will of company-wide to identified let starting initiatives half to down improving action and the able year. me margins, of start with percentage On focus since cover of more Air the that cost and and

On reduced we Further, per this of year-over-year. vehicle percentage also the year double-digit logistics, On beginning is reduced cost have transportation, improvements. by since we efficiency meaningful labor through improvements cost this made cost in year. the than more the reducing

to efficiency. is believe longer term, margin last our to negative cost And quarters, the number batteries gross by increasing reduce also our journey XXX%. to the of to [ at reduce few rate best into negative improved although looking over XX% the we're Looking from we ] the battery

cost. down also We're drive evaluating every to opportunity cell

Graphite recently agreement supply with a For signed example, we One.

our is related making I including of leading choice to a facilities. that and We very deliberate a to made powertrain in-house addition our to BOM the battery cost logistics and and equipment. sold manufacturing state-of-art and technology, portion meaningful of want software of long-term investments, depreciation remind factories our a In goods cost, of

will So to have cost of. volumes, competition, as improvement not advantage in we gross to a start only will very but our we're see margins, significant proud ramp you also which

savings other expense our is went and is services monitored every $XXX On related it on areas portion professional reduction. our and to expense which deliveries. guidance and by spend headcount each of we that optimization, current On despite higher down footprint SG&A is updated CapEx, in corner, whether today the our Each OpEx, increased to significant looking we results cost a annual the reduce and or the quarter overhead. from challenged, million are and number is evident

also Peter. There production ready companies working the some to Gagan. X within staying tech? Thanks, does upcoming compare Thanks, X highest power and motors on years. claim be Question to to X is How And claiming of ahead and Lucid are you C. Paul while Motors? from less radial are materials, axial using torque flux how density this

get I'll here. me Maynard, started

larger So technically drum lack there's EV radial the up mean, more for Lucid's the there's axial axial a short, flux Motor battery radio motor axial of with of really X and motors, understanding and diameter, advanced Motors flux. And just against that compared fundamental shape. people's sort other technology Flux of how of used stack flux. more a motors They're modes we a level I sucks. But got of magnet There's flux quite really, are. well flux what it's pancake motor, it's think reasonably The is fascinating. shape. And then categories radial which it's like a Lucid I like permanent are

can't and need launched revs, they've they're they they quite great a got got speed you resort X,XXX if hybrid, fast. that And see problem They've maybe low like sports Now in and high engine. they RPM, And are these combustion the because to flat. fast, cars. RPM up the to rev diameter, application you very get for large a is a are about because really, because internal there spend carbon forces, XX,XXX diameter, great gasoline in super they and relatively very really to effectively, want they to But thrust you wrapping.

to know they're manufacture. who what It's me, super anyone carbon super believe it's with because cost. to doesn't And to motors difficult electric really has doing high resort wrapping

sizes, resort. And to super are They've want are difficult also radial nightmare not laminations got actual wrapping. laminations It these to motors are do carbon they're put each to do and a together. different flux a You is They segmented last laid manufacture. so

thing per the torque out axial here's so for that more similar to of plan a get weight you And ratio an flux.

we like flux matters I really radio that what is. a something understanding spin an really flux I more with It's about there's and lucid density. flux X,XXX going in are is miles bottom-end torque. is XX% axial this RPM are speed of And even lack not I'm so And lucid per hour a talks we . of not not to far radio think one far ahead kilowatt And and motors RPM. where But example tech just about of it's my just with good axial to power flux compared compared But between we're sorry. -- said as just fundamental XX,XXX we'll bandwidth motor. what gravimetric how if advanced get the spin flux, say, went the maximum axial I close of X anywhere

we'll you ESS Can last progress Say And give Peter. their you prototypes? product. on our Thanks, take information update still on provide . performance? And our running you an can retail the Are for question.

to say like mean, energy I the our in sector. are. of we Lucid to related yes, closely laser-focused year, got things. advanced products priority. a all have we specifically last focus Well, first advancements. energy take launched to exchange of . I've feature, we our got this laser At end have that I'd all, development range we're Lucid X enhancing teams midsized of of Okay. engaged to feature. other on charge software and on further that We're as Air our looking enabled the the and have vehicle, imminently whole the team Air, directly we're got We've my enables But vehicles. coming gives for storage. and launch working engineering further It it's ways, gravity absolutely that's that by many point beside the in Lucid Wunderbox innovative electric the Lucid bidirectional on

our is competency solutions. business, and Now to allow energy vehicles, bigger develop to I main ESS. not a core us will is future now, in technology battery that it's believe right And our our the the leadership focus But strength. tech in said, core storage

Thanks, Great. Peter.

Now we questions we'd to Wanda, lines. from can instructions the some on first move the take like phone question? to the

Instructions] America. Bank [Operator John with of Murphy of line comes Our the from first question

is for actually John Babcock Murphy. John This

quickly I'm Just sure for Ultimately, positive first name the be want mid-CV. are ask, positive question. calling if with the a it we've the to that we did space, product to but to not it's going able free free going cash expect flow to I been come you mean, And/or might with reach cash different small-ish to before that? you should get out flow or I that?

that to. plan Well, vision. the certainly I I mean is

whole positive. and platform. of going move Air period And back with model long-term would product. successive that's record us phasing business Gagan, lead is Xx our you midsized Gravity to the the of anything? with the with Lucid cash scale of potentially TAM model add Our growth flow successive that Lucid it's XXx for We X off the deliveries, a through now TAM to to just to the quarters like

Yes.

I think welfare. Peter

We like battery in-house a same time, the capital-intensive we space. company, in-house, a leading the operating we we and way powertrain investments, made in technology are are have And at technologies. are and we high-growth our

So advantage increases, volume of and one. that us competitive proud we a when are will our that very give

here, something as well. add to John really I'd like

we us We're not because competition, scale, the the to story rest. of will efficiency of all the get USP I is when this we as technology. company, think We're ahead a significantly competition. key advancing

play pack per given means people. to going cash with a a more directly flow a cost positive. it We where really make of to have our with is midsize miles be kilowatt And hour. we going and to can leadership play. help make free that to range X to us That other become will battery able is car That we'll smaller lead this than effectively to

about And of be was the protect or for whether talk demand for if to And be down Or That's Okay. also -- sense then reduce might ultimately, vehicles? it volume? would able it next prices to question, year. goal on wondering to to if elasticity does any brand makes the you drive helpful. trend future the go price I

Well, we in Air real is is did much we've launched But a product in think we've actually XXXX when A promise XXXX, expensive we of lot Pure, people is the than done would back we introduced $XX,XXX. the car more which Lucid drive reveal hit that XX,XXX. at what our just that. Lucid that

in marketplace. think as us the of introducing price this rather of price a So is accessible versions more there degree clearly, cuts. car of really than But successively sensitive the

[Operator Instructions] Our next from question of comes with Stifel. the line Stephen Gengaro

X questions me. from

The first, start you'll you opening think Gravity? the do when just quickly, for reservations

meaningless soon and a it opening let do so. as are of thinking companies haven't this know certain we opening list, an by speculative prematurely is done we customer as yet. to in degree. have Okay. reservation a say their a so Well, disclosed some that that What very I base you will would becomes we preorder What service that do at almost and appropriate list a we're time. we really is we'll position feel to of

down from the -- about mid-price a no other as and The vehicle, other you you picture sure bigger picture the question you calibrate battery. we along materials to that . engine how reconfigure bring do the technology based ask at the on how cost with do -- end point perspective price said your of a think I vehicle help yes, is exactly of of this, sort or how lower phenomenal but by XXXX, think I'm the to the on

Yes.

most well variance much And underway a more that We're now. all world advanced considerable is So the cost-effective create systems already. creating our we're our using the in to midsize. experience for work

I we've remarkable done think achieve efficiency. what is

I our I think cost treatment amount the the all further achieved don't gears. compact heat the the we're of cost cost the remarkable using, materials, in expertise use think we've of way. to We the the bearings, the the cost, of going can that competitiveness. reduce is copper the of

to want be our laser And And focus driving so But there expensive current so misunderstanding the truth this our technology is clear that this. is losses. for so esoteric, that's this is from a now. I is far us

What is which for to go family its as and suit of would and performance. knowledge level imminently performance Our a is unit, from licensing imminently cost for a trying effectiveness take technology for I'm more cost OE a current and even manufacturable suits . our well. traditional for lower midsize effective car all do that now

Itay from Our next Instructions] with of Michaeli question [Operator Citi. comes line the

me. for X questions Just financial

that your on down the term cash talk this announced intentions Do given year? we be a then should this more on hope year maybe year? more happen Just loan. a you outlook First, draw capital actually secondly, to raise bit drivers the the that talk for the your could CapEx you . about about And today, of expectation? just of delayed expect little can position reduction to next

you. Yes, Thank sure.

Coming ended our today. quarter we yes, also billion out convertible, the enough And So as $X.X liquidity specifically when have this liquidity and adds with so $X.XX with of facility, liquidity the money to well. $XXX today. we to from million billion take we announced we the

course the in $XXX have So of future, near to loan million we'll time. do intention at the this stage, withdraw from in due we don't term

Yes.

I we're prudently areas. Itay, that looking I've billion be cash. the looking steel We We're morning. investing pictures was the out misunderstanding, because, investing $X.XX got course, heavily should -- we're in currently new just I think put it remember building that seen liquidity our billion of in $X.XX of a up work that. of some there the in Arabia. Saudi we factory out. had in a And just But this there at that few we're course, we

of chunk putting we're a money And into significant that. so

we're feet, Arizona, in to factory in-house under Then a actually major in roof plant massively. our million our close stamping same X additional X roof to bringing bringing state-of-the-art our investment in million expanding an powertrain under and capability completing square and its logistics bringing OpEx same that in-house, the reduce center,

of investment huge there. So chunk there's a

crucial of And we're tooling look, this money got out going that, play. the sales And we've for for in Then and costs R&D the long-term long got we've and the a gravity. top on or as of costs, think term. the service This the network is gravity these building investments launch where our is to internationally.

equipment, And amount each which basically million so that machinery CapEx is as revising reduction to There the but at the negotiation, we want of our -- to the item, based and carefully, want procure build $XXX bring thorough this your able to the question a number played the bigger very are every also a looking significant guidance. cost and we of how some yes, on process the looking down and guidance, CapEx second deferral, part dollar how challenging of units, and is reductions part. savings each we factory, to cost, our efforts, have revising CapEx, a our on

from comes question next Advisors. of Our the Fox line Fox with Steven

X questions. had I

should How I years mix looking cetera? Can Chart I'm X all, model curve like First talk year. the to improvements? about, your of just versus versus next over of had from looks when then X, on at And a coming the it think electrical you're improvement efficiency you software with battery, follow-up. we latest et between X back say, of the

it's quite by And recording worse miles we Steven. become face right, kilowatt has with announced think a It's the U.S.A. having good cars arethat's car here we in the a in X see you fusion mean stringent. software context actually setting you PGE. in of because hour way ever close the per the it's and And more XXX and more EPA Actually, a I because to -- saw hardware. some some actually test. production just competitor I be to numbers most efficient recently new stringent today

It's Chwech, recently delighted So aspirational this internally hour. the race. call we play And was for technology to to commission we out. key. I I miles what X yet But that's Project per towards as which Welsh X think a kilowatt move the is absolutely is word

how have go engineers here, and much Project And you we an And aspirational of X.X than Chwech got So might and is research look it dictionary, that. can first. the up heard go? in better I've scientists on brilliant team but officially a to you it's that

just in a you you're in initially have first helpful. place importance customers terms That's that talk And features a with your just finding you learned just time about in for And follow-up, to... then as I a the out and Welsh of some the ADAS can while. rolling

ADAS, personally that vigor leading air stack big, morning this whole that's want to driving lane with is software. run-up We've a that a big year we're to a isn't this hands-free car, team. I in push out. reviewing I introduce We're lot on I before in the personally roll taken new out the a the and of There role I and And having software. am that ADAS got on is year the was infotainment a of a the company. the in in gravity. going just improvements driving range assist whole to

Gravity how we and of it's So going be, awesome on people to [indiscernible] roll improvement Gravity. Air there'll incremental see evidence be as will towards

next Andres from of with question the comes Fitzgerald. Instructions] [Operator line Sheppard Our Cantor

accurate to as address as a more as and is final relationship quarter. on term our raise is any the in we announcement. this being of from should -- the kind this be extends well? But then asked, runway which liquidity view but should it the Or best it QX way capital see A to of viewing 'XX, Obviously, been the have this questions again. on the helps touch PIF. On long medium cash that term, of straw Congratulations is maybe the lot the it into more near-term focused restrengthening to what near issues. Peter, to we

ask partners. aligned, of mere describe for are their so endorsement I'd a Andres. and you, we are commitment it long-term I of financial as couldn't the this a Thank any and more long-term further arrangement. resounding transcends they a perfect relationship,

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so This PIM. the have -- has on We is committed ideal this manner sense is have Gravity is products, are of the my with through We Chairman, we we of This track? also, And with more of keep capital. well have Peter, the things is regular together. us that commitment partnership next I on want absolutely is the into on want into these year. and think we midsized, Lucid raising dialogue take enduring Nondilutionary. dialogues. an it's track. both the QX significant this that I much And service to

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of color. X of a curious maybe up and agreement in just Wanted we about terms quick revenue. I last something particularly with to Marin, question. all licensing that on appreciate relationship -- touch spoken that couple haven't the on can that how you Maybe Aspen and expand maybe when But in ramp just I'm expect on how going is if you to that that quarters. might

Yes. the is solid delayed. There's There makes that was emphasized I because are completely any With disappointing in terms But on a they long-term requirements. customer as relationship. little their EV I an think don't end, where it's their to disappointing announcement. I which any a is it difference delay of rock.

great Aston $XX,XXX. above to as We're world. best is about hypercar going from all Sapphire. range to week that fully in a in our electric then is not committed, to what's creates And up and we're where finish. ensure that. we that Aston with the the starts go price $XXX,XXX

a So relationship. great . synergy there's no cannibalization absolute there's and working

[Operator Beith Instructions] Redburn comes next question the Tobias Our from Atlantic. of line with

able threshold? miles Pure one X-kilowatt and removal different have to its X and perhaps them than the battery Are of I were could comment this the weight more kilowatt this to stated information reduced. reflect slightly Lucid predecessor. noticed individually. logic vehicle please, provide And ask per hours you power the I'll XXXX smaller improvements small module suggesting be of X, the may the seems Peter, too is I pack, cells capacity the been be and the have to that to themselves breach made other that on on from

module is, XX XXX at I volts. think, runs pack It which Absolutely.

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tell car get weight. So we got more per battery the magic XXX kilowatt were because ever, hour, me less you, gallon even choose there's X most we if and it's miles even efficient we've let efficiency miles range, And no less the per close. even one's to

got to little down miles miles drop -- that remember world well, got range, levels. got to XXX, XXX, be other hour So that's there's to kilowatt more for any which miles we're it's the a car efficiency. above efficiency close would lower-range record usage, what XXX you've we X.X that achieving to we hour. per out per with and get If cars easy to relatively. range, X these is, competitive there has no from other manufacturer. kilowatt A still

game the to is can advantage on Is achieve electric that vehicle, the needs be What scale. of costs end Lucid's plus assuming it material for volume theoretical for Okay. an maintained the profitability? superior bill

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start that's per at If you than multi-thousand with we dollars. tech numbers like beyond of of $XX,XXX say counts if the we can hours dollar if dollar another we that thousands and saving And kilowatt Bloomberg products. look midsize maybe cost is at all just XX, level, going every company a wants to at hour look mean where car pack to saving we kilowatt when This do today, can our $XXX difference less even a $XX,XXX, car, is this the to XX the I suddenly make license competition.

technology affordable put and electricity have pickup, in smaller trying battery to solution right OEs other would because you implied much . agony the you propulsion, high-tech an that for our if that would their require And pickups pack thousands may. electric save believe pickups solution. wrong fact, the with But pickup usable product if those do a in so those to electric our look the with OEs, at isn't was the some of

made powertrain of of long-term in-house our technology technology. choice and investment to add we battery And this, having to a

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technology to going hold Gagan, good there point, because hope this XX. be because. we're I you'll September and join absolutely, manufacturing able us to on day

advanced really is state-of-the-art per world-leading I if powered we has to anyone seeing got if the train I . with. got anything think manufacturing in-house plant, like don't EV compete believing,

Paribas. line question next Picariello of the comes Our BNP from James with Instructions] [Operator

I for have question a this year. on deliveries

You obviously of have units. X,XXX the production guide

indication uptick could saw I nice quarter. in But the the in was quarter. think You the sequentially in America for see -- a in lower the North demand in deliveries. -- North We second American second lower that revenue deliveries the third Saudi quarter

for is Just what's the the and what note the there expectation curious full for in year? play

sure. Sure,

make today So that we guided to track upon plan we've haven't we that is we're just approximately guided on And cars deliveries. reaffirmed year. What X,XXX that we this have for on that.

year. out manage Now do be a this clearly, of need business, We We quarters. to to prudently is from we of up inventory. what and need buffer, inventory. directly to of of efficiency trying the last record some year the XX% supply we're customers we're on QX deliveries, need the X to our course, inventory. over back able regarding manage But

to we no We won't grow. amount inventory that So we want but don't of inventory. want managed inventory, don't

want implies number we a delivering more that or that than we be implicitly, number upon very to therefore, although So we similar guided that. the haven't manufacture,

flow cash risk manageable. inventory that we better, yes, and storage our obsolescence also -- is bring the cost. now benefits it And our also of believe right a couple the reducing of managing reducing

a we . position that believe in from So we're perspective. good

were we about just, of the months. we QX summer cautioning think because I

prudent I think we've about that. just been

and the demand the Yes, that's deliveries side. on ultimately Okay. just

Just more cautionary. it's seems

summer bit but and to people tend upturn QX, then a of see. vacation their we shutdown in see an with long a you Traditionally, will

on then state, fourth the you that then we've right? the quarter announced government? any general Got deliveries the ASP one, those just cash implied, that's rate $X.X the my as $X.X there difference is and that follow-up. gets Saudi plus you quick to in Well, you discernible raised just it. right, and then between and burn billion liquidity, into billion the And today, your And got in quarterly

rate million cash in quarterly billion. $XXX implied still is to that burn that So $X

that? that ultimately terms into Is and which not Just what through and importance expectation, the is that goes rate cash critical year profitability with math on loose burn of necessarily how your in next gross... your of expectation corresponds curious just

couple things So of a here.

we around from spent First $XXX million. CapEx of all, a perspective,

This $XXX guided million CapEx. quarter, we quarter, nearly $X.X billion last for

a So well CapEx we're to investment going plus there. of is R&D in and for journey. significant we CapEx amount a to the be of are going part be going factory to building future a the where next as significant programs Gravity as to significant for Plus, the working us capital the are year, midsize come on so spend remaining to we our to is Saudi ready amount us of where take Arabia,

in mean, on the and Day. I holding XX. come -- September visit on us us the Manufacturing factory please Technology We're join please,

puts think money I This sheer The a is visiting Gravity midsize and going long in anyone made, We're of world the new on tooling world. to level where in best in a is facility. This factories Arabia, money in play. the the SUV state-of-the-art investment Saudi future. on will investing term now in incredible the our service money to continuing we've of this facility design position the we've get into network production. spending us realize got is Arizona going. an the the around state-of-the-art the completing for our the We're is this

a pass. where that's play, investments and money strategic . come This long-term is long-term are is it these the So will going. to

everyone. Thanks,

XXXX appreciate Earnings joining call. Thank So Conference today. Lucid this I you. everyone us . Quarter concludes Second

everyone. Thanks,

now Ladies and may gentlemen, you disconnect.