On February 28, Lucid Group Inc. (LCID) declared its financial results for Q4 and fiscal 2021 after the bell. Along with that the company also announced signing multiple agreements for its first international plant in Saudi Arabia. Following the news, the stock tumbled down in the after-hours on Monday.
The positive anticipation for the upcoming earnings had caused the stock to trade at 109% of its average volume during the regular session. At 51.76 million shares trading, LCID added 9.98% in the session. The stock closed the session in the green at a value of $28.98 per share. Following the announcement, LCID reversed its gains and plunged down by a huge 14.42% in the after-hours. Hence, the stock was trading at $24.80 apiece at an after-hours volume of 8.16 million shares on Monday.
The electric vehicles manufacturer, Lucid Group Inc. has a market capitalization of $43.38 billion. Currently, the company has 1.65 billion shares outstanding in the market.
LCID’s 2021 Financial Results
In Q4 2021, the company generated revenue of $26.4 million with $21.3 million from the deliveries of Lucid Air Dream Edition in October.
Moreover, the company completed 125 vehicle deliveries in Q4 2021. LCID’s total production surpassed 400 vehicles to date with more than 300 deliveries.
Additionally, the company has 25,000 reservations to date, marking over $2,4 billion in potential sales.
Updated Outlook
The company now expects production of between 12,000 and 14,000 vehicles for fiscal 2022. According to the company, supply chain headwinds and challenges are still expected and the reason for the lowered guidance.
First International Plant Plans
On Monday, the company also announced its agreements with the Ministry of Investment of Saudi Arabia (MISA), the Saudi Industrial Development Fund (SIDF), and the Economic City at Kind Abdullah Economic City (KAEC). The agreements were in regard to its preparation for a full production factory in Saudi Arabia.
In addition, LCID expects up to $3.4 billion value to the company over 15 years from the manufacturing plant in KSA. With the plant’s construction commencing in H1 2022, the company expects up to 150,000 vehicles per year at the facility at its peak.
LCID’s Retail Network Expansion
On February 17, the company announced its newest Studio location at The Mall at Short Hills in New Jersey. This marks the 22nd location in the company’s North American retail network.
Conclusion
While the company is moving forward with its first international facility in KSA, its latest earnings report was disappointing. The company’s lowered outlook caused the stock to suffer a decline in the after-hours on Monday.
