Luxury electric vehicle maker Lucid Group maintained its annual production target after it missed quarterly revenue estimates, sending its shares higher in extended trading.
Lucid said second-quarter revenue increased 55 per cent to $150.9 million from the same period a year earlier, but that missed estimates of $175 million, according to seven analysts polled by Refinitiv.
The company posted a net loss of $764.2 million in the three month period to the end of June, compared with a $555.3 million net loss in the same period a year earlier.
Lucid's deliveries in the second quarter were unchanged from the prior three months at 1,404 units, while its production fell 6 per cent from the first quarter.
Shares of the company fell more than 3 per cent at market close on Monday but then rallied by an equal amount in after hours trading. The stock is up about 4 per cent since the start of the year.
"We're on track toward achieving our 2023 production target of more than 10,000 vehicles, but we recognise we still have work to do to grow our customer base," said Peter Rawlinson, Lucid's chief executive and chief technology officer.
"During our second quarter, we achieved several major milestones, including signing agreements to enter into a long-term strategic partnership with Aston Martin. Following a competitive process, their investment validates our award-winning technology and marks the first partnership for Lucid Group's technology arm."
Electric vehicle makers have been battling supply chain challenges to lift production.
Competition from Tesla's Model S, the prices of which were cut this year, and rising borrowing costs have posed a threat to Lucid's growth.
In response, it cut prices for its Air luxury sedan as part of a special offer on Saturday.
Tesla's price war and rising interest rates sent ripples through the EV industry, making it difficult for money-losing start-ups such as Lucid, which also face competition from traditional car makers launching electric models, to grab market share.
Due to its high cash burn rate that is needed to boost production, Lucid raised $3 billion in capital, in the second quarter including $1.8 billion from Saudi Arabia's Public Investment Fund.
Lucid has started to ship vehicles to Saudi Arabia and the kingdom's Ministry of Finance has agreed to buy at least 50,000 cars and up to 100,000 EVs from it over the next decade, the company said in an SEC filing.
Lucid's first international manufacturing plant in Saudi Arabia's King Abdullah Economic City (KAEC).
Electric vehicles will make up about half of the new car sales worldwide by 2035 as the push for net-zero carbon emissions accelerates, according to Goldman Sachs.
EV sales will soar to about 73 million units in 2040, up from around 2 million in 2020 with the percentage of EVs in worldwide car sales projected to rise to 61 per cent from 2 per cent during the period, according to the US-based investment bank.
Lucid's current liquidity stands as $6.25 billion, which will propel it through the start of production for the Lucid Gravity, and into 2025, said Sherry House, the company's chief financial officer.
"In addition, the targeted actions under way to invigorate our marketing programmes in the luxury and premium segment have resulted in greater brand awareness, which we aim to capitalise on through the launch of our latest pricing programme," Ms House said.
Mr Rawlinson said that company plans to roll out new products in the second half of this year, including the planned start of production of the Lucid Air Sapphire and the Lucid Air Pure Rear Wheel Drive, as well as its new 4X4 Lucid Gravity in November.
