Electric vehicle company Lucid saw its stock tumble yesterday following its earnings release, which reported both losses and a slashed production outlook due to “extraordinary supply chain and logistics challenges.”

                By                    Yaёl Bizouati-Kennedy

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MarketWatch reported that Lucid stock fell more than 14% in after-hours trading following the earnings release.

On March 1st, the stock was down 12.8% in pre-market trading.

Lucid reported a net loss of $1 billion in the fourth quarter, according to the release, while revenue totaled $26.4 million versus the $59.9 million consensus, according to CFRA Research.

CFRA Research said it maintained a “hold” opinion on Lucid following the earnings release.

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Nelson added that the guidance was particularly disappointing given the fact the company was expected to produce at a quantity that was considered manageable in light of industry challenges.

“While there is a lot to like about the LCID story, such as the quality and specs of the Air, its balance sheet ($6.3B of cash at year-end) and its state-of-the-art new factory in Arizona, the massive cut to volume guidance is likely to weigh heavily on the shares and further the stock’s ongoing re-rating after high-flying performance in 2021,” Nelson wrote.

Sherry House, Lucid’s chief financial officer, said in the release that the company will expand its footprint in Europe and the Middle East in 2022 and plans to build a new manufacturing facility in the Kingdom of Saudi Arabia.

“We estimate that the location of our first international manufacturing plant in the Kingdom of Saudi Arabia may result in up to $3.4 billion of value to Lucid over 15 years,” House said in the release.

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