Lucid Group reports 32% q-o-q increase in 4Q 2022 revenue but is yet to break even: US-based EV manufacturer Lucid Group reported a 32% q-o-q increase to USD 258 mn in its 4Q 2022 revenue, up from USD 196 mn in 3Q 2022, according to its recent earnings release. Lucid’s 4Q 2022 revenue saw a whopping 876% y-o-y increase, up from USD 26.4 mn in 4Q 2021. The company has yet to turn a profit, but reportedly told the Wall Street Journal that its losses had narrowed to USD 2.56 bn in 2022, down from USD 4.75 bn in 2021.

Steady production growth despite general market uncertainty: Lucid produced some 3.5k vehicles in 4Q 2022, compared to 400 in 4Q 2021. Its 2023 vehicle production target stands at 10-14k vehicles — well up from its 2022 target of 6-7k vehicles, the recent earnings release notes. The 2023 target is “…representative of the degree of uncertainty in the marketplace,” Chief Executive Peter Rawlinson told the news outlet, while Chief Financial Officer Sherry House added that market uncertainty and higher interest rates are impacting consumer purchasing.

What they said: “2022 was “a challenging year for everyone,” due to “extraordinary supply chain and logistics challenges,” noted Rawlinson in Lucid’s earnings release. Still, Lucid managed to scale every part of its business last year, House is quoted as saying. 2023 will see further growth along with “comprehensive” cost reduction, she added.

Background: Saudi Arabia’s sovereign wealth fund PIF invested over USD 1 bn in Lucid Motors — the brand name of Lucid Group — in 2018, to hold a majority stake of over 65% in the firm. The company debuted on the Nasdaq in July 2021, after merging with the special-purpose acquisition company (SPAC) Churchill Capital IV. In April 2022 the government of Saudi Arabia signed an agreement with Lucid to provide 100k vehicles to the Kingdom and construction of the company’s Saudi Arabia production plant began in May 2022, kickstarting its initiative to have 80% of all EVs produced by Lucid be made in Saudi Arabia by 2030, and 155k EVs produced annually in the Kingdom by 2025, Lucid’s Vice President for MENA said. In January, rumors circulated that PIF was eyeing an acquisition of the remaining shares.