Al Root

Electric vehicle start-up Lucid reported better-than-expected fourth-quarter numbers -- and positive news about the outlook.

Investors look pleased -- the stock jumped by a double-digit percentage in late afternoon trading -- but the results are the least of what is boosting the shares.

Tuesday evening, Lucid announced a per-share loss of 22 cents from sales of $234.5 million. Wall Street was looking for a 25-cent loss from sales of $214 million.

Both numbers beat estimates, but sales probably matter more than earnings now. Lucid hasn't reached the scale to achieve profitability.

Looking ahead, the company expects to manufacture 20,000 vehicles in 2025. Wall Street projects 2025 sales of about 17,000 vehicles. (Production and sales should approximate one another).

Lucid sold 10,241 vehicles in 2024, up from 6,001 in 2023.

Those growth expectations have pleased investors. Lucid shares were up 10% in after-hours trading at $2.88 apiece. The stock was down 6.1% in regular trading, while the S&P 500 fell 0.5% and the Dow Jones Industrial Average added 0.4%.

Tesla might have had something to do with the Tuesday drop. Its shares fell more than 8% after disappointing sales data from Europe. Rivian stock also fell 4.3% on Tuesday.

Lucid ended the fourth quarter with about $4 billion in cash, similar to the third quarter level. It used about $3 billion to build its business in 2024. The company raised more than $3 billion over the year to keep its cash balance healthy.

Cash is key for any start-up. Wall Street expects the company to use more than $7 billion over the coming two years. Positive free cash flow is still years away, according to analysts' projections.

Lucid looks like it will eventually need more cash. Saudi Arabia remains a large backer, with funds tied to the government holding about 60% of Lucid stock.

Through Tuesday trading, shares were down about 17% over the past 12 months. Slowing growth in demand for EVs, more competition, and President Donald Trump's promise to eliminate EV subsidies have all weighed on investor sentiment.

Write to Al Root at allen.root@dowjones.com

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February 25, 2025 16:37 ET (21:37 GMT)

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