LCID - Earnings call 3 2023 | Lucid Group, Inc.

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Operator

Good day, and thank you for standing by. Welcome to Lucid's Third Quarter Earnings Conference Call. [Operator Instructions]. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Head of Investor Relations, Maynard Um. ahead. go Please

Maynard Um

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

Joining CEO Rawlinson, Sherry Peter me are today our CFO. House, and our and CTO;

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

non-GAAP regarding A non-GAAP and In I'd make our Rawlinson. earnings during Peter measures call. that, non-GAAP we available the reference in in to discussion like press ahead. Lucid's CTO, is deck. With release results go issued investor reconciliation turn information CEO earlier over financial use of financial this as addition, afternoon as Peter, the well this call and please of to our why versus measures to will management GAAP

Peter Rawlinson

we delivered that set of production. we'd in In we do, of earnings we third currently the joining for the out to as process us Pure key call. and up said production milestones Maynard, our we you, Thank everyone, ramping of you, started Air In Drive, we its QX, number thank Rear-Wheel are quarter achieve. the September, a and for

a with variant just most is starting $XX,XXX. attainable Air ] Pure our Drive Rear-Wheel the price Now [ of

sacrifices has competitors. absolutely in available Air for minutes. incredibly other and an we the this miles most car per style for and official nothing widening than Rear-Wheel has XXX me, importantly boundaries to Drive besides and to more currently practicality. and is other our further of just the all. It technology, Pure it up it Rear-Wheel engaging approximately of delightful any estimated range our of and miles, electric range Drive miles And a Lucid with charge However, The XXX push XX drive. performance, hour, space models. But it's EPA technology continue the And efficiency to Pure against kilowatt gap X.X can

less for cost to this customers, small, further can means And is means because with more vehicle than a battery battery of similar less, agile this a go ability range with and the the the is weighs batteries. car larger less Now pack.

a interior battery, small the get costs, materials, distance, it's less raw you greater So for better space running and environment. much lower immense

for and delivers miles between efficiency provide reference, competitors a of speed as an EPA well XXX horsepower closest top October. XXX I The of both Air just XX% of and September, of production per just an XXX an kilowatt X.XX the first early per Sapphire customers X.XX time seconds, X.XX at XX fully seconds to X.XX Air also event range special of time Sapphire mile electric range. seconds Sapphire as the estimated X.XX on capabilities. hour miles per XX% the and miles luxury We X a hour is perhaps and achieving X,XXX charge, to of miles first cost representing super-sports a extraordinary in in single miles we Lucid an to hour. with time world's fusion started of sedan, less Air X a in delivered hour mean

the car, one versatility. performance That's just and with car an it's And Now Sapphire truly to a result about extreme not the that dimension. unsurpassed underpins road It's car is agility ]. [ an but just time performance, drive rewarding enables of dynamics. X amazing blend technology to XX

is In With fact, is maybe its best-handling the the high-performance increased and well-regarded gap EV. Jason automotive world's we the between the bar again the versatile, Sapphire well-rounded Cammisa, Sapphire, competitors, Lucid and sedan world journalist creating car Air most who the like a history of Air Lucid with said, and best-handling raised in once the period. the or Lucid

to stamping Phase really to assemble X,XXX vertically Lucid In made on manufacturing first also also country's facility We in as opening car officially Arabia the operations and underway. body-in-white shifted achieved out capacity factory is history already Saudi first-ever powertrain its the getting there. of and our integrated the a has area in expansion This phase, just factory. a factory. we We are major year, vehicles the manufacturer manufacturing September. new In X general start continues Arizona, milestones assembly with construction

vision years, first our signed before Chief X phase in a towards This Aston chain, our Saudi grow. Martin, and the built directly I this our with for extensive automotive long-term Officer, freeing a up turning Winterhoff product next is markets and global SUV agreement vehicles, on as to international be are will appointment service, growth. intimate of and service the focus factory we a the knowledge is technology newly to and strategy and execution, commercial its strategy natural its strengths, company. and expanded our delighted company of located announce Lucid And Gravity midsize mighty and my second In this the the well new Operating we Mr. significantly as production working future our role, enters upon namely we and footprint, invaluable continue Now sales created deliveries, to us marketing as benefit facility assiduously by critical time I'm We our Arabia. Marc vehicle. Thus, will more me. believe success, overall technical as supply just of and global to Lucid to indeed our I evolution to the am affordable reports Marc's confident of that appointment which of experience sales the execution manufacturing strategy

I with exciting forward drive matters day-to-day technology operations. help look also competitors technology map. partnering to our our in naturally, And I'll road Marc essential particularly over our advantage closely with be and

deliveries. turning production In we vehicles. and Now to produced X,XXX QX,

vehicles in these Air only were delivered X,XXX we towards in the this include AMP-X manufactured production Ministry our Whilst transit does to Saudi. deliveries Arabia. upon agreement. will not And Finance Saudi Lucid with XX,XXX. XXX be are the Now our of to deliveries. facility production that more production assembly QX, down were in to we prudently We they our decided at final X,XXX, over a from in third initial X,XXX under vehicles to of than adjusting quarter, range outlook align including And counted

this on a touch detail. will Sherry Now, in more little

turning America, awareness the awareness. has quarter These new North the customers. of from underway of marketing demand. with showing Now and been whose and to Efforts quarter initiatives within compelling actions imperative are in contact customers brand came A their fact to the third In results. are order. well orders in enhance Lucid first in majority critical and very specific sales and good

mass road to to fruit of environment. despite Lucid and cars that all we continues the exciting The our people of as an that a Air to And hit bearing it's well meaningfully sightings approach volume as are targeted we uneven on can Air brand critical also our data-driven believe photos I offerings see out. on of our that macro are believe grow, in once marketing awareness compelling while that more sending road. the benefit

also the awareness of growth, progress do Europe new From more the journey but progress, So we're with we have the Middle in we're U.S. test drive customer we've with in made significant pleased improve start a to as progress process way progress journey. do. experience. great working the as initiatives still towards final sales process. improving but deliveries all to journey next our We're our frankly, still early accelerate the growth financial the on on also in work working service the been And to We're delivery with through some East. and expect brand more there, and making in the on year. We've well customer

a able XX,XXX XXXX. to Tesla than happening through the we we're in access that will announce integrate current excited be North to network our pleased the charging more all North scenes gain in American the changing And of also So CCS by. I'm to And of that behind lot Lucid that standard vehicles Superchargers will standard, then really with adapter. access things an America. customers Lucid can into vehicles course,

charging important an to solutions. Now access providing convenient addition this reliable our to customers is expanded and

This but update. Lucid turning latest range. we we anxiety started Not EVs Now a solving vehicle-to-vehicle in software. update revolutionary enable anxiety less are of our the can software today, feature new lower rolling charging. our with over-the-air will out also with for industry-leading owners other range now only range Earlier Air to

the me technology. please our tuned this very of integration is of approach It's example of you cutting-edge with shining tight So systems let a our this for tell is stay design future. But significant. in to state-of-the-art more near why vehicle. the so details the our This software the of

well auto systems integrating it approach I of industry And as this what updates. the believe is to a in software value-added do Now these us allows and as provide hardware few longer the get, own that car. functionality to car, you can. can you the it own continue the with Air, as the improve Lucid we the we to better and add degree And can

Digital. invite with video of our I you Head a to Mike Now watch Bell,

website to find differentiation into glimpse some can into Lucid hope a You come. and our will the of I on you what section our and which Talks Tech give software insight

go have merits to to through recently deal, And, very the announcement based arrangement. also a our of say to the as seen that I want say Sapphire interest Martin Lucid to fact, technology. our technology. highlight competitive Aston of our inbound was Martin we I'm more we Aston process closed increase in upon I'm chosen since Sherry that delighted this access that pleased part in detail, but of in will great an the

continue forward, potential. As and to technology see move the further significant technology continue widen I to We'll gap. market advance our look we to

investments about reduction in Some by in other the potential OEMs. market for are talking the EV a

that Lucid industry having I technology our to Now licensing transition accelerate bear, transportation, widely And becoming would to a to be recognized I prodigious EV to Lucid the to as believe the this through nonetheless, whilst benefit if the in best were business. sustainable [indiscernible]. is position technology come urge whilst

believe XX, without November Gravity, cannot LA about, on excited very Xx Some talking designed I to special wait addressable for Lucid opening and be it about [ manufacturability. I Gravity to mass outset X-row, expand The from the And market this to ] the significantly led market SUV. may that X-passenger understood. well that this I'm close Show. can't All event week will product And make. is not expensive is technology a it's at was our total at next the unveil growing. nearly a our launch opportunity larger up Auto a

innovations More a Air the customers upon Sedan and planet, we clear has performance, now up the But we turn, we an importantly, to space our from efficiency, of SUV the everything me converted driving SUV. and just SUV. range, Gravity electric people will be the all interior redefine Air isn't Lucid be the redefine ground Gravity the that just the Air for bring Gravity space, been the to about experience, the the and age. But SUV takes help to for Sedan designed that the And in Gravity. that the love in builds will an true let the design

occasion. think it reveal of show I can't but able be will want I us Now going next don't I I wait to you're much, love to week. this that to momentous for many and And join to it, you to hope all you too

forces So and are that out are not. control our some in closing, we of recognize are that that there

others XXXX. this We are for excited of affecting navigating the is year in the that an environment industry. macro about also remainder uneven and I'm many But

our excited of other hard to the expansion and market, We have have that growing I'm it me a that, work we to lot update Sherry? to suppliers us. our on And thank to employees, partners. And turn our an to the know larger in announcements future. addition ahead to important share our number our I'd to like with a with you asset, of you close by In a Sherry into over let and saying for we financials. and Gravity of most

Sherry House

suppliers especially those Peter, and endured And global you, partners environment. macro who start their Thank disruptions their to to you today. supply I'd work. now commitment. uneven our acknowledging hard and and our the dedication deep chain join and are an the taking thank perseverance, We've like us for employees time for by pandemic, through to their

we locations have and all market, September the our believe and in market we the opened the points basis best gained period of full Sedan we're equally year-to-date launched share in excited of We X market market we in the as We continents, of XXXX. to redefine variants. this, Premium Despite of the Gravity. XXX almost U.S. in Air manufacturing versus with car SUV Luxury same XX

Before cash to terms the speak turning Aston deal We're of of XX.XX we results, received pleased the XX first agreement. QX have closed agreement, shares in and about Martin the million let million. to me approximately the USD ordinary pursuant the installment to

is this Martin Aston shares, worth $XXX the deal excess anticipated in be million. to Excluding of

program. control cost our to Turning

this lower to inventory levels entitlement inbound in and drawdowns materialized and improvements material from optimize cost able the made cost QX program. the highlighted material inventory one course overhead and program of half start reductions. we by of that improve of this X-part the savings raw vehicle These to level inventory of as implemented cost, working top rentals in been labor, down planning we've as management. Particularly, our have capital. and this inventory equipment freight material The improvements X We've cost to and in we yielded at has of through through priorities resulted channels recall, savings draw handling of shipping the beginning our the and significant year. you'll inventory forecast well first related logistics As XX% control direct through our operational levels accuracy approximately year was able been

measures cell optimization costs For as vehicle implement to development were direct during product battery improvements. QX, and such we able

all manufacture. a example, battery For that we being introduced new cover modules is across

key opportunities parts carbon steer control and such reduction improvements cost and Further such and sold select large with Lucid's XXXX in-house. opportunities also also as for fascias, part identify and for feature footprint panels glass have in consolidation has plan. The helped cost we've goods product reduction Additionally, well introduced vehicle bringing as cost as on as packaging of OpEx. identified cost program as direct both measures upgrades been further of operations

Arabia. the more combination finally them Saudi hoped to many assembled deliver hope and to Saudi customer. that into XXX up The factory QX. at in are over QX. gated Now turning and cars, include quarter financial sold We are third and does AMP-X gated until to X,XXX be not These to CKD kits versus factory Arabia counted year-over-year customer Saudi our results. manufactured are We QX. kits. deliver had vehicles both during X,XXX quarter. a our These delivered retail to semi Arabia vehicles of produced XXXX government vehicles, they're we X% vehicles We that in in a This prepared ready vehicles are were the in vehicles sequentially not then factory of additional and as third

scale has little taken the estimated. time longer a than up However,

In revenue we was $XXX.X in of a X% of a of $XXX.X recorded P&L. third quarter. million revenue change represented quarter-over-quarter by million, the the largely QX, which for approximately decline driven mix. product to Turning Cost

This reduction gross amounted margin in related Our million lower to to value from cost also a realizable the refer primarily quarter-over-quarter that on as in slightly basis due impairment net a lower QX, or improved LCNRV. to we charges of to $XXX.X XX.X% QX QX.

can to to logistics, primarily our QX, reductions we gross recognize there with highlight us I costs controllable improvements AMP-X improvements by productivity work some many to help anticipate conversions. to also incentives in our uncontrollable forward dynamics. by margin, through any we Phase would projected impairments, accounting although the aid X, as variables on along degree to offset beginning not part driven Looking include gross that do and benefits to as results contemplating potential margins, transition of and are IRA that affect fully

in costs able to have not to be expect levels. we're of vehicle per and benefits, be due also timing to we've higher-than-optimal still may recognition. It's meaningful important which there we the note reductions inventory to benefited from which However, commodity yet to been evaluating $X,XXX that recognize up

the partly new variants, As partly with We'll that be we built inventory of however. due work launch these down see watching associated benefits to due vehicle to we XXXX. for we inventory impacts and COVID the in ramp-up carefully very inflationary meaningful to expect may offset financial any gains,

QX million, million, X% by service We was expense centers. at expense. sequentially. sequential Now management and approximately X% XX, down moving The the $XXX.X and marketing partially to center down satellite R&D to $XXX.X studio the approximately excluding new better our to decrease locations quarter of in attributable expense network temporary added our SG&A bringing operating was offset total end totaled to expenses, our higher X cost sequentially. service

fleet we shops. body the QX XX ended mobile On service side, the approved in with nationwide vans in XX

service We open also to will additional customers. which Lucid plan effectively cost for to locations provide continue centers, satellite

sequentially. $XX.X in down compensation the stock-based quarter was X% Our million,

should to vesting million, due income higher as largely yield to interest $XX increase incremental $XXX.X attributable in well from balances was in income to expect up see average million investments. QX. and The other book You increase higher an cash and from to QX due hires. Total as was

recorded noncash liability, million fair in related of up million change to $XX.X benefit warrant a the QX. our value of in from We common also $XX.X stock

impact As an the price be Lucid QX, of number a $XXX.X reminder, of the one can a factors million. of end being influenced the factors loss of share achieved quarter-to-quarter In adjusted EBITDA with this quarter. by noncash larger at we

been liquidity total And of for to last over We equivalents and $X.X we'll sources. sustain balance sheet the approximately a financing years, X investments, the in with $X.XX continue billion balance opportunistic to consistently sheet. exploring in ended to approximately quarter access time. with be We've we've done billion. Moving diversifying able as strong and cash the cash, to

chain inventory the QX. see Total we down $XXX.X transportation stabilize, reduction on systems. in greater continue X.X% X% a channel to versus refiner and were work in inventory. Capital toward we as to decreased pathway continue million, Turning Presuming raw that supply inventory processes predictability days to a expenditures of inventory hand significant material sequentially. pressures to in management

Moving to the outlook.

not a rather our from clear a X,XXX X,XXX our adjusting than more outlook to XX,XXX. bottleneck. to to are production deliveries. But in-transit semi down align working production capital production to of management saw want affect make kits range I of our guidance knocked-down prudent Arabia given with is The and in prior any inventory to as of QX. timing in approach better you We to we're Saudi taking could that quarter,

keep to well. in something consideration that's So as

With $X.XX our total approximately quarter we ended position, regard liquidity with billion. to the of liquidity

give this expect and of us production Gravity will XXXX. into of the We start runway through

Moving to CapEx.

expenditures service some support and be retail XXXX manufacturing in We for in for capabilities reflecting business. as tooling capacity expect capabilities, invest well our Gravity as across between continued $X.X will capital in our growth outlay. capital $X.X and areas to deferrals CapEx investment we vendor strategically objectives Lucid's billion and as the of growth supporting moderate studios globe other center and billion,

I close. file to announced required a is the June to placement it's of may today we previously in issuance were I registration related filed private common have statement. after want that PIF This XXXX. Pursuant agreement, market Before a not S-X close, the you the new Form the to of mention stock to to seen and

of assembly Saudi program and many and over proud in that Sapphire We through not Arizona. production Phase is software. contractual September. industry. Phase in So X Martin general a issuance. I'd by update, closed over-the-air be for in team's our started feature I'm like and facility obligations, environment in Drive time. difficult our saying AMP-X on our in Rear-Wheel new simply Arabia, launched We of a We We our execution that new the execution affects all of the the our in hardware Aston Deal, the transitioned highlighting Pure to delivering from opened X will tight the vehicle-to-vehicle integration charging this to of an is close this referral

inflection our know focus a we on wait the in we to diligently release our hard to drive Show. few Something Auto on control, We're much help at journey. And to and But industry we're it. to number others event increase keeping We're brand details can the do. vehicles at we'll think LA a to XX, SUV the We we cost working can't of Gravity awareness. this on We strong incredible unveil an have work customer more going on November improving believe and SUV. more show about the you love do. you're the finally working road,

With that, Maynard to turn let back to get questions. me it your Maynard?

Maynard Um

start We'll Sherry. Thanks, the portion. Q&A

questions retail going get Before to from our the questions post to on we're some Say the through phone, we platform. investors

Lucid plan expand start start What profitable the becoming we'll company? operations So the first for question. and is a to their

Sherry House

Maynard. expansion Arabia AMP-X service I answered X studio the with of Phase the of Well, think question with the and we discussion as network. in the our well plans already AMP-X our as Thanks, Arizona, our about in Saudi expansion expansion

your question our where our a core of the to our is we're part focus. through program The path profitability. and that control our looking efficiencies cost every company's part of adapt to to This is of organization second part refers

material overhead key process capabilities. cost-down and continue labor important expansion be initiatives, automation most to and focus Our of of initiatives, cost-down core system building manufacturing, areas of

demand this globally. be our All generation extensive is with of activities to coupled

we'll production we business midsize it as course, show decade. with start As exit the And to ramp to to Gravity coming, look we have really model. believe our of of will forward company and in strength we the

Maynard Um

Great.

plans efforts Second slide prices? to is question, Lucid for any the doing the stop of are it? current are What stock there

Peter Rawlinson

of of Well, a as movement number stock you know, is function factors. a

see. to things investors There any for control. the extremely like other company can it that offer factors predictability make supply macro some rates, of like to beyond chain are are and company's that clearly conditions kind issues interest would And any challenging

emission invest product revenue against continue push our also opportunities Now important to and in beyond that deliver the technology, our said, continuing what plan. to to progress We'll is our automobiles, rollout within indeed to continue on whether to make promises software. credits innovate, control and to is

us And we I really So quite the the believe, will execute. today org of simply, help really, announcement to have tremendously. structure changes,

Maynard Um

Thanks, Peter.

third typically The Sherry XXXX. I give something earnings our call. to as remarks, think, guidance we answered mentioned, relates outlook the on for QX question, any prepared we in it is our

the prevent Lucid move What burn vehicle? do next to question. to cash will we'll So per

Sherry House

Great. should Well, think, $X.XX with billion. on just liquidity first, just let might me have start and billion have In hand. prepared we I that said said the my remarks, $X.XX I cash have

So I just want to get that today misunderstood correct on there frankly the to out question. record. as it But this that relates particular question, this a lot and misleading is

First ] already this number we've investment. And a off, asking that it paid for in really that in to It's for burn about particular our [ with conflates expenses are note up P&L, the there's of cost important our that P&L. that question, are specifically things showing vehicle. noncash cash

other So well. to This depreciation as the for center service our is related all include expansion in tools ones investment of new but depreciation. largest not efforts, facilities, our and just also program studio manufacturing

about we which that are refer Additionally, to the yet but also looks today, future today the costs LCNRV, includes we to quarters. related it talk impairment not it as

conflating future of give which these the current interpretation misleading in numbers. So period, a can it's costs

And there per at are a follows. company things backdrop, today with a and are are So level. vehicle doing a that that as at of number as a we those level

talked some them And about. of just

also driveways. in importantly, manufacturing are that of is cars Some the more to market occur our all and we cost of enabling labor flywheel efficiencies our effect overhead the reduction, and naturally reduction, expect in business, across people's areas

our street. ability And have drive enthusiasm on neighborhoods in customers the and to fantastic the their

are business reduce our and profitability what important possible. is So to for as across investors a bring quickly our diligently and every drive have here our costs, enthusiasm of we is that to working as brand we area plan

Maynard Um

Maggie, turn I the Sherry. for Thanks, questions. would to like lines to phone

Operator

[Operator Instructions].

America. Our from comes John Bank from of question Murphy first

John Murphy

quarter. Just XXX just the in come plus about It's the units. and there'll the CKD ] Saudi to I fourth in imagine question quarter, and be some a here more would first Sherry [

hey, the included. hey, reason say, sort might Sort on significant of the an that's production have optimist you aren't of say, units, down might customers guide but those

I'm [ if there's going accounted where XXX,XXX question presold. effectively would the imagine So I ] understand ultimately there's And going to that these units for. I units think mean just orders are be Saudi, to they're there. to about trying no we

So revenue would recognition the upon final that the there. I immediate and would your imagine assembly almost sale occur

accounted being relative are production how for of So for? just And how we the the should to down that guide think these in year?

Sherry House

first the off, as up for production So units, are not SKD quarter. said, this we in showing

next we'll So out be presumably building over those the quarter.

they'll up okay. So in in likely numbers mostly QX, show production

So first the part your question. of that's

of to be the elements retail. them any I presold, being government and don't the to respect part for speak transaction the us will will exact can't really I what With But for about with speak customers. of part be Finance. really transaction can units We say the of dynamics in Ministry our specific of that is these of

as the We this to forward. that was going in already to for though we the have last deliveries increase begun quarter, XX-Q, government, we and said expect nonmaterial

John Murphy

on and might the that CKDs, that what knockdown is foreseeable executing really these them -- mean be AMP-X in or on these and humble the mean, I a continue to assume to We'll running? quarter. it what So just fourth SKDs, too kits. follow in up Would selling this seem reload on you're maybe reload for you're until this executed Sherry, quarter quarter, I to like whatever yourself being bit short be calling I be Okay. there future that. up fair the call a fourth right? on does was little it will

Sherry House

Yes.

establishing So a we'll quarterly be cadence over time.

also important to I for the introduce us other think to going region. that's variants to it's product fair And be say. into

that to variants will been product new producing So Saudi we've as be over well. also shipped

will the in produced be Some of quarter. those

be But, mean into end Some quarter process each over completing are and I or yes, be them at them of you're not that delivering sending into to yet vehicles to and production producing then in ships numbers. those quarter. going units of going there, the the finished then

Peter Rawlinson

Yes.

of those lot the in And an is where to those around Kingdom the we'll shipping reach remember that ]. getting those think this out. -- time, point, equalize world right are we John, equilibrium that units think Arizona from a incomplete [ -- have the transit to you kits I due to It's I units.

they might count of be them gated. Arizona, that reassembled they're doesn't Saudi be progress, that's until Arabia, So the factory moment factory and as but we that factory counted the accounting in can produced. have count factory purposes, as to in gated cannot when leave in they as for They work leaving counted

Sherry House

Finished if that down by fact, down you planning in work that management. X% went again, specific as in about down to SKDs. better that noticed around up as of went talked about because went And, same But was and well inventory X%. these Yes. on on about progress had the that But XX% have actually down Raw went you're at whole, due basis. look up well as goods you the material of an would material total amount. we inventory, some inventory went

to going now just You're forward. it composition see a going different of

John Murphy

profitably. is everybody. you, is North might America, Europe having be of Japan, too. at struggling could obviously, there all And kind one. changed The the to but just quickly, China, That's the and conversations on maybe Or and major confirm powertrain more idea discussions? you these second large Has this? as literally more the in then to new technology seems in just you everybody it's really can directly be of like maybe a coming tenor and licensing these you should Peter, anything EVs industry launched just, of It's that Korea, regions And say anything helpful. not real get it appealing

Peter Rawlinson

agreement but interest. There's Martin. our say inbound I degree nothing to that to, with awareness catalyzed talk successfully Aston -- definitely closed that's delighted a specific indeed, of And has will close of We've I this. can

the we've said, that Now, technology right suits like sort cars now pretty of got high-end Martins. Aston

as be affordable which more But our clientele, we attract to strata a is we when more to midsized we transition that's altogether. appropriate -- are for in new position whole family Echelon platform, a of technology, a will cars,

position that inbound to any market. powertrain And midsize the that be how the we accelerate in technology to capture of so could at for in a really, we we're looking position could that interest

Sherry House

to And we're scripts about are starting read I ICE this they lot that provide prognosticate other I going earnings EV are of the to position bit just not can saying want as an EV. and to hear licensing we're if partner. program look a not maybe this of on well. as be mean advantage do these that help portfolio puts people think we case, But products came some were OEMs possible in as technology us what going some we perspective having a to is, do. and at have to us that you an that possibly of to OEMs hinting ecosystem pullback it the the on a out, and you If

Peter Rawlinson

it well, we our -- there's technology. out, in you be average with our relatively because this, efficiency, range kind valuable because Aston affordable off can But Aston. EV an an power of whole can recognition units battery. buy is already. super and we do is this. Martin This rights. But think shelf. I message -- the of think as leverage our I got further lighter the system which a growing efficiency can something go cost means okay and like that got is customers sports a recognition of And car drive that's our less the also going same there's I a with can incredibly our martin this, we that it's battery. you batteries. mean awareness to just And true a the the it's advantage for very strategic to there's be Aston John. unacceptable of less overlay that with It's addresses its our got straightforward parts such And leverage when can the And And own still the attribute is technology of just And how haven't special the think that

Operator

from Fox Our -- Steve next question Fox Fox Steven LLC. from comes Advisors,

Steven Fox

to ask question. I wanted a

in I've the costs technology has terms lot a think I and done production. The asked of the and way. had you've hatches start company a down [indiscernible] with definitely the to leverage in different battened

is you've for reacted All applaud rates. you receive of should -- to interest that how higher

drastic However, to I future. like need the it to take company in steps me, might the mean, seems some

an niche higher the a maybe seems such sort more like going look say, you to opposite your would for, to Lucid higher they're your it's and trigger mind, [ rates longer stay interest unless ambitions. to argue What modify market event that of XX for ] it time Given like Like months. just next move a can in for Peter? the XX

Peter Rawlinson

very looking all the of looking improve like looking all cost business. also pushing the cost view. the taking Sherry imperative leading here, optimization. measures looking is I a to capital, at We're of think at -- cars, making numbers. in nuanced working our at great our inventory, efficiency our aspects We're we're crazy delivery doing very prudent, job a

just company. taken a that And think view and the a market a a is cost Lucid. think at company. market to We've we're going effectiveness and from in that, as late within core of be being looking continue cost Gravity, product potential transformative here thinking will I very control now, an Now which a cornerstone the that a considerably around can greater I always our for going -- very at that's within have with than nuanced market impact XXXX transformative -- SUV. And year potential our prudent absolute say all I growing and and to

Sherry House

we cash the rate cars, know And have invested. But it there. are the for for Lucid thing I about to expensive we why environment now say customers more very I particular. this we it a other support side balance And is buy interest some and that mean, is there the sitting another a just interest lot of is offering rate in that large to environment. is known that. would on We're right

a balance interest we've those as bit So -- experiencing been costs associated with actually cash environment. quite the the income with rate interest of in well

as there pertains So us in as to to is particular. well it side another it

Steven Fox

and ask look ramping revenues when Gravity But seeing like next think And out side it you side? complementary that sales the I on existing question existing helpful. could so the think the you I models That's about upbeat production just a forward to like maybe can how there, week. more if to and from less SUV, the is cost ramp do make incremental Gravity on you the the more to stores,

Peter Rawlinson

Gravity lot think on I part strategy of retail made the configured network, factory and in been to room cohesive considerable in that our of of Gravity. of for alongside our Phase Air. that we sort mean a I investment a built of we've It's ready we've stores out Arizona our always but think have investing in that implemented. think the for for should ready Gravity. And is already X very we also I We're

When upon just the Gravity different think Gravity just I from another to decision we at is is of We point some Air. kind platform create cannibalization, of true result we Gravity took We of sort SUV therefore, lines distinct and designed course, products base here, look Steven, platform. have Air as a in very new car-like compromise. between with not its very, really and investment that Gravity. product X made to own Air

very capture consequence distinct into really very of we markets from X imagination distinctly I products as So a can people's think that. different

Sherry House

utilization, the perspective, a sharing but And we're asset at shop. not the the about think just service sales I at just at centers, general a sharing powertrain, financial we're it paint also staff, the is then higher much assembly. We're stores, sharing way from

be give to as to flexibility that going a respond company more this the of a number areas we're is the seeing in there's So to us signals where market. to demand just going really

Peter Rawlinson

line. Absolutely. same go I mean the down Gravity will Air and

a So economy scale. Gravities, to other. each you'll Airs, factory, might real couple alongside ] of X Gravities line and that see have the of in built same or we X they'll a coming you be X actually the of Air couple production a and life [ And that's

Operator

from have Picariello from James Exane. Paribas we Next, BNP

Thomas Scholl

on James. is This Jake for

looking looking your at like XQ at about a your just [ - So in ]. at per million $XXX 'XX it the we're burn looks is -- cash liquidity, looking in first quarter

First, is launch continued can much to then you the how tied confirm run if of just rate on that the Gravity And Air? that's accurate? versus

Sherry House

Sure.

what free is Gravity of launch. And was a question flow you then your lower quarter million. hundred So Gravity the by actually couple the this question to than related cited just cash launch? second the the about what was And

Thomas Scholl

cash is Air? Just to burn the tied continued how versus rate launch run much on the the Gravity of

Sherry House

Sure.

So -- little I'll a bit answer CapEx maybe the on that side.

we to for that to guided the see $X.X you'll billion our balance $X.X billion down of CapEx So year. the

you can giving the guidance, not but do we're math. Now

of around XXXX we is that $XXX able $X.XX with effectively to of XXXX. do, You for can to able see million billion roughly the What started we $X.X we that CapEx billion. year guidance a CapEx move to capital into were were

we equipment do as in have launch to finish million XXXX, well into to the tooling with that onboarding. about get you the associated $XXX spend when the and So facilities Gravity as CapEx machinery, expect of

savings. some recognize did we so And

will So spent as also XXXX. that's high have of yet move about $X.XX in as XXXX, into tooling totality, tooling be probably as X/X billion X/X year, Gravity. the related why about of that it's vendor We'll the in not to that vendor next in but some we

majority to engineering carryover the an to level spend the on continue Gravity product, but have that and level the into R&D advancements the of be the midsize really improve has and make Air, shifting So the spend on is also of well. you then continuing people already occurred, an course, product as and

Thomas Scholl

And ramped in we Saudi expect took like the and to quarter pretty looks then stock more a trend down the see we ASPs How third up. as step mix you should that guys as ] the fourth [ strip quarter shipments big higher? Pure in

Sherry House

you're right. Yes,

going and larger were to be So QX. Pure as U.S. talked last had in guided relates That QX that in but we on that's to we comparison, KSA, U.S. the also percentage as shipments be a deliveries deliveries were I to from the a quarter, it into and ASP Europe partly how we ramping was in basis about small to I going the went an as numbers and introducing we QX, drop. expected,

that So dominant the as the see U.S. I Europe going as we KSA do relatively to be move see to being flat. increasing. QX, would market. it's to We But we guide continue and

see think will seeing similar as in in as be I you're it a QX. mix QX, you'll

Operator

would to closing pass remarks. for I Thank to Maynard like you. back now

Maynard Um

you. Thank

call. Thanks, for disconnect. us and conference XXXX earnings everyone, you Quarter So Lucid's joining now today, may Third this concludes

Lucid (LCID) 7 Nov 232023 Q3 Earnings call transcript