ALBAWBA - Lucid Motors, an electric car manufacturing company, announced lower-than-expected revenues in the first quarter of the current year, following a decline in sales due to the discounts offered by its competitor, Tesla.
The company's disclosed results revealed quarterly revenues of $149.4 million, compared to $56.7 million in the same period last year, falling short of analysts' expectations at $209.9 million.
Lucid Motors also reported a net loss of $779.5 million for the first three months of the current year, compared to $604.6 million in the same period of 2022.
Sherri House, CFO of Lucid Motors, stated that the company has liquidity of around $4.1 billion, which is sufficient to fund the luxury electric car manufacturer until at least the second quarter of next year.
Tesla's move to reduce prices and increase sales volume affected negatively on Lucid Motors, with billionaire Elon Musk describing it as a strategy that would harm newcomers in the electric car industry, such as Lucid and Rivian.
Last month, Lucid Motors announced a reduction in car production and deliveries in the first quarter, influenced by increased borrowing costs following the Federal Reserve's interest rate hikes, impacting consumer spending.
The Saudi Arabian Public Investment Fund acquired approximately 200 million additional shares in the last quarter of 2022, increasing its total stake in the company to 62%, or around $1.1 billion.
