Shares of electric vehicle start-up Lucid Group rose by more than 5% on Monday, after reporting its third-quarter financial results together with data on vehicle reservations. Despite generating a meagre revenue, the company has a market capitalization of about $73 billion as of Monday.
Lucid Group reported a net loss of $524.4 million in Q3, which, however, didn’t affect its stock negatively. The stock was driven by other things, such as the number of cars that the company is about to produce for next year. The California-based car manufacturer said on Monday that it has secured more than 17,000 reservations for its deput Air Sedan. It has moreover confirmed the production of 20,000 vehicles for the next year. According to the company, reservations represented an order book of $1.3 billion.
As Bloomberg reports, Lucid is seen as a potential competitor to Tesla Inc, after acquiring battery technology that can rival Tesla’s performance. It’s also worth mentioning that its Chief Executive Officer Peter Rawlinson once worked as Tesla’s chief engineer, helping develop its Model S sedan.
In 2018 the start-up secured more than $1 billion in funding through Saudi Arabia’s Public Investment Fund. Its brand new car facility in Casa Grande, Arizona, was built less than a year ago and began operating in 2020. It started producing vehicles in September and on October 31 it began limited customer deliveries of its first EV.
On Monday Lucid’s CFO Sherry House told Wall Street analysts that she is expecting that the company will begin recording revenue from vehicle sales and report details of its sales at the beginning of the fourth quarter.
“I feel great about our stock price.” she told CNBC. The run up that we’ve had, where it is today and also the growth trajectory, frankly, that’s in front of us. I see that we’re being regarded as a technology company with a platform that’s extensible across lots of vehicle variants and sustainable tech.”