Luxury electric vehicle manufacturer losing $227,000 per car with stunning $630 million net loss last quarter

Luxury electric vehicle manufacturer Lucid Motors has posted massive losses while reportedly losing over $225,000 per sold car.

According to the company's latest quarterly earnings release, the market has not responded well to its products. Lucid listed a $630.9 million net less for the quarter, stemming from remarkable overhead costs.

The $137.8 million in revenue was dwarfed by a $469.7 million lost from "Cost of Revenue." Additionally, "R&D Operating Expenditures" cost another $230.8 million, while "SG&A Operating Expenditures" provided another $189.7 million in losses.

In total, the company's "Free Cash Flow" was a whopping negative $706.1 million. These numbers are actually an upgrade from 2022, when the company lost $530 million and was in the hole for $860 million.

Nevertheless, the Wall Street Journal reported that the company is losing $227,802 per car sold in the last quarter.

When it went public, Lucid Motors had a market value of $91 billion in November 2021 despite only having produced 125 cars. Stock prices at the time peaked around $53 per share but have since plummeted to approximately $4 per share at the time of this publication.

Lucid still has a reported $5.5 billion to spend however, thanks to Saudi Arabia's Public Investment Fund. The fund, directly from the Saudi government, has already firmly backed the company and has pledged to buy 100,000 of the manufacturer's vehicles.

This should come as no surprise after Lucid became the first company to open a car manufacturing facility in Saudi Arabia in September 2023.

The company, which is headquartered in California, sells four different electric vehicle models listed on its website. Prices range from the cheapest model at approximately $75,000, all the way up to almost $250,000.

These costs reflect a recent price cut on Lucid cars, which are still too expensive to qualify for a $7,500 federal tax credit for electric vehicles; the credit caps at a $55,000 price tag for cars.

While electric vehicle are seeing manufacturer's discounts of up to 10%, many companies are scaling back EV production or shutting down projects altogether. Ford, Honda, and GM recently announced rollbacks of electric vehicle production after slow sales and an overall reduction in consumer purchases.

Honda also ditched plans to co-develop electric vehicles with GM. The goal was to produce a brand that could be sold for under $30,000, but Honda CEO Toshihiro Mibe said the market was too unpredictable, so the plans were canceled.

Additionally, Toyota Motor Corporation Chairman Akio Toyoda said that "people are finally seeing reality."

"There are many ways to climb the mountain that is achieving carbon neutrality," he added, while noting that there isn't one, single answer to reduce carbon emissions.

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