Lucid beats sales estimates. The stock is on the rise.

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Lucid, which delivered just 360 vehicles in the first quarter, hopes to ramp up car production later this year.

Patrick T. Fallon/AFP/Getty Images

Electric vehicle start


Lucid

beat first-quarter sales estimates. Stocks were flat on Friday after a tough Thursday session.

Lucid (ticker: LCID) posted sales of $57.7 million in the first quarter. Wall Street was looking for $55.6 million.

The shares rose about 1.3% in premarket trading on Friday. Shares fell 7% in normal hours Thursday in what was a bad day for markets. the


S&P500

and


Dow Jones Industrial Average

fell 3.6% and 3.1%, respectively.

Lucid delivered 360 vehicles in the first quarter and had vehicle reservations of 30,000, compared to 25,000 reported at the end of February. Lucid still expects to deliver 12,000 to 14,000 vehicles in 2022. This is the same as the previous forecast, also given at the end of February.

CEO Peter Rawlinson said on the company’s earnings conference call that awards would be honored for existing reservation holders, despite rising raw material costs. He also added that vehicle prices were rising.

Supply chain issues partly explain the higher costs and higher prices. “The dynamics of the supply chain are very fluid,” Rawlinson added on the call, citing Covid-19 lockdowns in China that are affecting parts supply. “But our team is doing an amazing job mitigating that to keep us on track.”

Lucid ended the quarter with approximately $5.4 billion in cash on the balance sheet. That should be enough to fund the business for years to come. For the year 2022, Lucid expects to spend approximately $2 billion on capital equipment. This includes approximately $185 million spent in the first quarter.

In addition to Lucid’s cash balance, the company is expected to receive billions in funding from Saudi Arabia. Lucid sets up its second manufacturing plant there. Saudi entities own approximately 61% of Lucid shares.

On Friday, Lucid stock is down about 50% year-to-date. Rising interest rates and inflation have dampened investor enthusiasm for high-growth start-ups.

Write to Al Root at [email protected]

Sallie R. Loera