Lucid Group Inc Q1 2025 Earnings Call Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Stephen Gengaro - Stifel - Analyst : Thank you, and good afternoon, everybody. I think the first one for me is having been lucky enough to experience to Gravity, I would imagine, as you as you get people in the seat, it's going to -- you'll start to see a pretty significant interest. Can you tell us where you stand kind of on test drives and what you're seeing maybe just call it qualitatively from an order perspective at this point?

Question: Stephen Gengaro - Stifel - Analyst : Great. And then I might have missed this on the call, but do you have an update on where the Atlas drivetrain sits right now?

Question: Andres Sheppard-Slinger - Cantor Fitzgerald - Analyst : Congratulations on the quarter. I want to just maybe touch on the 2025 outlook. So guidance is reaffirmed or unchanged at 20,000. I guess like how should we think about the breakdown between the sedans and the Gravity, both in terms of maybe production and deliveries for this year. I think in the past, you had mentioned, I think, the sedans will be relatively flat to last year, and the delta perhaps coming from the Gravity. Just any color you can give us there? Basically, we're trying to figure out what's the best way to think about ASPs for the rest of the year. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 06, 2025 / 9:30PM, LCID.OQ - Q1 2025 Lucid Group Inc Earnings Call

Question: Andres Sheppard-Slinger - Cantor Fitzgerald - Analyst : Okay. When you say improving in this case, you mean lowering correct? The blended is the...

Question: Andres Sheppard-Slinger - Cantor Fitzgerald - Analyst : Okay. Got it. Super helpful. And then just as a maybe a quick follow-up. On liquidity. So total liquidity is just shy of about $6 billion. You touched on this before, but can you remind us again kind of the plan to address the convertible bonds maturing in 2026. I believe the recent capital injection will be used to offset that. But can you maybe just remind us what you've said there and kind of what the plan is?

Question: Davis Sunderland - Baird - Analyst : Maybe just to start going back to your prepared remarks, Marc, about the KAUST partnership. Could you just expand maybe a bit on the resources, either financial or through personnel that you and your partner might be committing, where are the R&D focus might be out of all those different areas you outlined? And then I have 1 follow-up.

Question: Davis Sunderland - Baird - Analyst : That's super helpful. And then maybe just for my second -- totally acknowledge your points about other OEMs being preoccupied with tariffs. But I just wanted to ask, do you see a scenario potentially where all the global uncertainty and the tariff talk actually increases interest in some of your technology just as OEMs want to increase their use of U.S. components. And I know you talked in the past about a licensing model specifically, but would you guys ever consider being a manufacturer of certain components for a customer, given your excess capacity and maybe some of the new Nikola assets.

Question: Tobias Beith - Redburn Atlantic - Analyst : Great. Good afternoon. Thank you for your time to speak, Marc. I have 2 questions, which I'll ask separately, if that's okay. In the near term, not to be philosophical, but total type work hours can be thought of as being a semi-fixed resource. And I was wondering if Lucid would divert time to re-architect existing supply chains for the Air and the Gravity, the potential detriment to the Midsize platform time line.

Question: Tobias Beith - Redburn Atlantic - Analyst : All right. That does help to have confirmation. Secondly, the event in April has mostly positive feedback on the Gravity, which is great, but several reviews, some of which you highlighted in your opening remarks mentioned it finishing technology issues. And then enthusiast form also indicates that many studios are yet to receive permanent test deals. My question is whether the state of the vehicle and its derivative to the Touring and whatever else that follows are on track versus your expectations at the start of 2025.

Question: Tobias Beith - Redburn Atlantic - Analyst : Sure. I completely understand and get that ramp-ups have a natural learning curve. Thanks for your time, both look forward to speaking soon.

Question: Stephen Gengaro - Stifel - Analyst : I'm not sure you all want to comment directly on this, but I'm curious, can you talk about with the Gravity production ramping, like how do you think about the sort of the timing and the puts and takes towards gross margin -- gross margins moving towards breakeven and profitability. Is there anything you can kind of talk about that helps frame that for us?