Key Metrics for Lucid Group Investors

Investors in electric vehicles (EVs) who have chosen to partner with Lucid Group (NASDAQ: LCID) have a wide array of data to monitor. This includes metrics such as vehicle production numbers, delivery counts, and various financial figures.

However, it's crucial for investors to pay close attention to one specific number in the upcoming months — a key figure that can significantly impact this growth-oriented company.

Focus on Capital Expenditures

In 2024, Lucid is expected to report a remarkable 74% growth in vehicle deliveries, demonstrating its success in appealing to customers with luxury EVs. Yet, the company is also striving for further expansion with plans to introduce three new midsize vehicle models, with production anticipated to begin in late 2026.

To gauge Lucid's progress towards this ambitious goal, investors should keep a close watch on its capital expenditures, often referred to as capex, in the forthcoming quarters. During the latest fourth-quarter earnings call, the management projected 2025 capex to be around $1.4 billion as the company works on enhancing its AMP-1 and AMP-2 manufacturing facilities located in Arizona and Saudi Arabia, respectively. These facilities are crucial for the upcoming midsize models.

Successfully launching the midsize vehicles is vital for Lucid's longevity in the market. The company acknowledges that this segment will broaden its customer appeal, particularly due to a more accessible price point — expected to start around $50,000 — compared to its existing Lucid Air sedan and Gravity SUV. Additionally, a significant portion of the agreement with Saudi Arabia for 100,000 vehicles involves the Gravity model and these new midsize offerings.

Potential Red Flags from Low Capex

Instead of solely relying on the management's projections, shareholders should be vigilant about Lucid's capital expenditure levels in the next quarters. If the actual capex falls short of the anticipated $1.4 billion, it could signal potential delays in starting the production of midsize vehicles, indicating more significant challenges in the future.

Author holds no stocks mentioned. This publication has no positions in any stocks mentioned.

Investing, Electric, Growth