Luxury electric vehicle (EV) maker Lucid Group (LCID 3.48%) reports first-quarter earnings after the market close today, but investors aren't waiting for that to sell the stock. Amid a general market sell-off Thursday, Lucid shares are near the day's low, down 8.1%, as of 12:50 p.m. ET.
The first quarter was full of headwinds for many companies, and that's particularly difficult for early-stage manufacturers like Lucid. Rising raw material costs, supply chain delays, and inflation affecting consumers all make ramping up the business more difficult. Investors will watch what Lucid has to say today about production, vehicle reservations, and its recent deal with the government of Saudi Arabia for up to 100,000 EVs.
After beginning production in late 2021, Lucid delivered 125 vehicles as of the end of the year, and a total of 400 as of Feb. 28, 2022. The company said it had reservations for more than 25,000 electric Air sedans as of that date. That represents potential revenue of over $2.4 billion.
But the supply chain challenges it is facing caused it to reduce its target production volume for 2022 to a range of 12,000 to 14,000 vehicles. Investors will want to watch how the reservations have progressed, as well as any updates on its production plans. Lucid ended 2021 with installed annual production capacity of 34,000 vehicles.
If it has made progress in navigating the restrictions caused by supply chain constraints and increases its 2022 production estimates, the stock will likely react strongly. But for today, with the overall market slumping, Lucid shares are heading lower ahead of what the company says tonight.