LCID

1. Key Historical Highlights

• April 15, 2025: Introduced the 2026 Lucid Gravity Grand Touring, an SUV with advanced features and charging capabilities.
• April 11, 2025: Agreed to acquire select facilities and assets from Nikola Corporation, enhancing manufacturing capacity.
• April 8, 2025: Closed a $1.1 billion offering of convertible senior notes due 2030.
• February 25, 2025: Announced CEO transition, with Marc Winterhoff as Interim CEO and Peter Rawlinson as Strategic Technical Advisor.
• February 25, 2025: Produced 9,029 vehicles and delivered 10,241 in 2024, marking a 71% year-over-year increase in deliveries.
• January 28, 2025: Appointed Taoufiq Boussaid as Chief Financial Officer and Gagan Dhingra as Senior VP of Finance and Accounting.
• January 6, 2025: Announced collaboration with Panasonic for high-performance EV batteries for the Lucid Gravity.
• November 7, 2024: Opened orders for Lucid Gravity Grand Touring and announced record deliveries in Q3 2024.
• October 29, 2024: Announced Lucid Gravity orders to open, highlighting its unique performance and design.
• October 28, 2024: Lucid Air earned a five-star overall safety rating from NHTSA for 2025.
• October 17, 2024: Priced a public offering of common stock and investment by PIF for $1.67 billion.
• September 10, 2024: Showcased Lucid Gravity SUV and new Atlas Drive Unit at Technology & Manufacturing Day.
• August 5, 2024: Achieved record deliveries in Q2 2024 and secured $1.5 billion capital commitment from PIF.
• July 16, 2024: Introduced Lucid Air Pure as the most efficient vehicle with 5.0 miles/kWh efficiency.
• May 6, 2024: Raised $1 billion through a private placement with PIF, enhancing financial stability.
• March 25, 2024: Announced $1 billion investment by PIF affiliate, supporting growth and the launch of Gravity SUV.
• February 21, 2024: Delivered 6,001 vehicles in 2023, a 37% increase from 2022, meeting production guidance.

2. Financial Performance Overview

Revenue Growth

Lucid Group has experienced significant revenue growth, driven by increased vehicle deliveries and new model introductions:

• 2024 Annual Revenue: $807.8 million, up 36% from $595.3 million in 2023.
• Q3 2024 Revenue: $200 million, a 45.2% year-over-year increase.
• Q2 2024 Revenue: $200.6 million, up 32.9% year-over-year.

Profit Margins

Lucid has made substantial progress in improving gross margins through cost optimization:

• 2024 Gross Margin: Improved from -225% in 2023 to -114% in 2024.
• Q3 2024: Continued improvements in gross margin performance due to cost reduction efforts.

Expense Management

Strategic financial maneuvers have helped Lucid manage expenses and enhance liquidity:

• Convertible Notes Offering: Raised $1.1 billion in April 2025 to repurchase existing notes, mitigating dilution.
• Public Offering: Generated $1.67 billion in October 2024 to support growth and operational needs.
• Capital Commitment: Secured $1.5 billion from PIF in August 2024, extending financial runway.

Significant Financial Events

• Debt Management: Repurchased approximately $1 billion of existing convertible notes in April 2025.
• Capital Raise: Completed a $1.75 billion capital raise in October 2024, strengthening financial position.
• Liquidity Position: Ended Q4 2024 with approximately $6.13 billion in total liquidity.

3. Management Effectiveness

Strategic Decision-Making

Lucid's management has demonstrated effectiveness through strategic expansions and partnerships:

• Asset Acquisition: Acquired Nikola Corporation's facilities to expand manufacturing capabilities.
• Global Expansion: Opened reservations for Lucid Air in Europe and expanded service centers in Germany.
• Technology Leadership: Launched advanced features like Lucid UX 2.4 and DreamDrive Pro ADAS.

Capital Allocation

Lucid has effectively allocated capital to support growth and innovation:

• Convertible Notes Offering: Raised $1.1 billion to repurchase existing notes, enhancing financial flexibility.
• Partnership with PIF: Secured $1 billion investment to support long-term growth and technology advancements.
• Cost Optimization: Focused on reducing the bill of materials and improving gross margins.

4. Key Quotes from Management

• "Lucid Gravity is the first SUV that truly compromises nothing." - Peter Rawlinson, CEO, Lucid Group, Inc.
• "We are delighted to have completed this offering, which better positions Lucid for future growth and success." - Taoufiq Boussaid, CFO, Lucid Group, Inc.
• "Our record deliveries in the second quarter were in no small part due to your hard work." - Peter Rawlinson, CEO and CTO, Lucid Group, Inc.
• "The Lucid Air is widely recognized as the best car in the world." - Peter Rawlinson, CEO and CTO, Lucid Group, Inc.
• "Our sales momentum is building, our focus upon cost remains relentless, and we believe Gravity is on track to become the best SUV in the world." - Peter Rawlinson, CEO and CTO, Lucid Group, Inc.
• "PIF’s partnership and support separates us from others in the industry." - Gagan Dhingra, Interim CFO, Lucid Group, Inc.
• "The advancements introduced across the Lucid Air lineup for 2025 further cement our leadership position." - Peter Rawlinson, CEO and CTO, Lucid Group, Inc.