Lucid Group, Inc. (LCID) Earnings Call Transcript & Summary

Members of the audience, please welcome Peter Rawlinson, CEO and CTO of Lucid.

Good morning, everyone, and welcome. Thanks for joining me here today. Today marks a true landmark for Lucid and it's the start of a bold new chapter in the history of the SUV. Now Lucid's existence is based upon a fundamental mission to innovate and to develop truly groundbreaking technology. We've never been here just to jump on the EV bandwagon because anyone can do that. We're here to advance EV technology that will, in turn, benefit to everyone and to change the world for the better. We started off by redefining the electric sedan, and we've continued to relentlessly innovate ever since. Back in 2021, we delivered the Lucid Air, the longest-range EV on the market with an astounding 520 miles range. And more recently, we launched Sapphire, our super sports sedan, which has been described as the best handling car in the world. The driving dynamic qualities of sapphire are indeed reflected right across the whole Air range, and that's because driving pleasure is central to our brand and our very DNA. And indeed, Lucid Air has won countless awards, MotorTrend, World Luxury Car Award, Powertrain. And now the Lucid Air range starts at just $74,900 representing truly remarkable value. Many people simply don't realize just how attainable Lucid ownership can truly be. So what you're about to see today is the culmination of everything we've learned thus far to deliver a vehicle that will redefine the SUV in the electric age with the very best technology in the world. So I'm delighted to welcome you to this the world premiere of our all-new next-generation technological game changer, an unprecedented combination of the impossible. And here to reveal the Lucid Gravity to the world is our Head of Design and Brands, Mr. Derek Jenkins.

Thanks, Peter. Hi, everyone. Before we talk about the future of SUVs, let's take a look back to understand how SUVs have evolved over the years. The first SUVs were loud environmentally and friendly and did their best work off-road, ideal for fishing, farming, even camping. Fast forward to the next generation, they started offering more luxury, creature comforts, even became status symbols on the road, but they still drove like trucks. And when SUVs took off in the '90s, customers wanted even more space for people and cargo, and that's when they became gigantic and cumbersome, making them extremely difficult to maneuver around town, then the crossover emerged, delivering new levels of on-road performance and handling, but it was at the cost of space and versatility. Today, we do have a wider range of SUVs, but somehow, we still accept these compromises must be made. Well, compromise just isn't in Lucid's DNA. So when designing the Gravity, we challenged ourselves to deliver all the things that matter most to people in the modern age. Our miniaturized powertrains let us further expand passenger space to create up to 3 rows of spacious seating while giving you room for impressive cargo areas from frunk to trunk. The body was given a super sleek profile to maximize aerodynamic efficiency and range, we widened the wheel stance, provide incredible versatility in ride height to optimize both on- and off-road performance. In addition to all that, we equipped it with technology that enhances the entire vehicle experience for body and mind. And with that, the silhouette you see before you offers more space for what matters, more range for greater freedom, more performance when it counts and more intuitive luxury for both body and mind. We believe Gravity has everything that truly matters to the SUV customer. Ladies and gentlemen, introducing Gravity. [Presentation]

What you guys think? So let's take a closer look. Starting at the front, we have an upright noble space with Lucid's iconic light blade, up high and mouth down low, giving Gravity that sleek, yet powerful look and making space for a huge frunk. The streamline cabin tapers down to a long aerodynamic spoiler. Along the sides, we have very pronounced shoulders, giving it that unmistakably bold SUV stance. Around the back, we have Lucid's signature wraparound tailgate, which you'll notice the low, very large cargo opening to maximize utility. And of course, we have our expansive glass canopy, which provides an eerie feeling inside and an awesome views of the sky above. Moving to the interior. Our 34-inch new curved OLED screen sits above our innovative new steering wheel, which gives you an uninterrupted view unlike anything else today. We call this the Clearview cockpit. Below that, you can see our Pilot Panel and quick access touch bar with our beautiful all-glass center console that elegantly slides open to store all of your things. The expansive interior comfortably seats 7 with a flexible second row and a spacious third row that actually is designed for the majority of adults. Yes, that's a big deal, right? Plus, plus all of these seats magically fold flat and stow giving you 112 cubic feet of space, including the frunk. As you can see, the Gravity is designed to meet all your people and cargo needs. I'm talking about 7 tall adults, a large suitcase and 6 carry-on bags or 4 surfers and 4 surfboards, even 4 people and 2 mountain bikes. The space in Gravity is absolutely incredible. So next, let's take a look at some memorable moments with Gravity. [Presentation]

Wow, so watching that video, it's clear that Gravity has been conceived from the very outset as a true lifestyle vehicle. And that starts with an all-new aluminum-intensive platform. Now it would have been tempting to simply base Gravity upon a Lucid Air platform, but that would have introduced unacceptable compromise. So therefore, Gravity has been designed as a thoroughbred SUV from the very ground up. And packed into this new SUV platform is the next generation of Lucid's renowned powertrain, comprising structural battery pack, drive units and the Wunderbox. Widely recognized as the most advanced EV technology available today, [Indiscernible], designed and developed and manufactured extensively in-house. This system provides 2 profound advantages, namely miniaturization and efficiency. And collectively, these 2 attributes have truly transformative impact upon the vehicle and its value proposition to the customer. Now top of many people's EV wish list, of course, will be range, and there are effectively 2 ways to achieve range. The first is to simply cram in as many batteries as possible. This is a horrible low-tech solution, which can profoundly compromise the vehicle. And it's sadly the approach taken by many others. We call this dumb range. But happily, happily, there is an alternative. Lucid's approach is to develop cutting-edge EV technology, the most advanced motor and drive units available today, combined with our widely respected race developed battery technology, which operates at an ultra-high voltage because ultra-high voltage is the future. This enables Lucid to travel further with less battery size than any other vehicles available today. And this truly is smart range. And this difference is so significant that Lucid smart range enables the Gravity to travel a range in excess of 440 miles with nearly half the battery size of some of our competitors. Yes, that's right. Nearly half the size, and this -- what does this mean? It means less energy use, far less of the earth's precious minerals, less weight, a better driving experience, a more expensive interior, superior utility and practicality, lower running costs and even faster charging. The list goes on. Our miniaturized electric power and drive units further produce interior space. They provide incredible comfort and luxury, yet being surprisingly compact externally, look at the external dimensions of the car, it's really usable. And this truly is sustainable mobility in action. So these advancements collectively endow the Lucid Gravity with a groundbreaking efficiency for its class of 3.6 miles per kilowatt hour. Now -- thank you. There's a widespread perception out there that all EVs are equally environmentally friendly. Let me tell you now, not all EVs are born equal. With twin drive units, Gravity will have a 0 to 60 time of under 3.5 seconds, coupled with a generous 6,000 pound trailering capacity and a 1,500 pound payload, and that's ideal for everyday utility and lifestyle. And here is Gravity towing, the latest-generation supersonic passenger jet prototype, out on to the runway, how about that? Furthermore, Gravity's zero gravity air suspension provides the ideal bandwidth to meet your on and your off-road needs. So Gravity embodies all of our learning, all the next generation of our tech, all of our loving attention to detail. It is the product that is set to redefine SUV in this new electric era. So before we let you all on stage to see Gravity for yourself, I'll turn it back over to Derek to discuss one of the most important distinguishing features of Gravity. It's incredible luxury and experience. Derek?

Thanks, Peter. Thanks. The tech in Gravity, it's just mind blowing. It's just mind-blowing. And I'm happy to say that luxury goes beyond the surface with Gravity. We've designed a holistic human experience that not only caters to your senses, but also prioritizes your well-being. Let's start with the physical elements. Sustainability has always been at the center of every choice we make, from thoughtfully selected materials to intricate stitching and accents. Everything in the Gravity has been crafted with intention. And because we want you to feel more at home in the Gravity, we've created something we call Lucid Sanctuary. It's an innovative set of experiences designed to create a sense of harmony both on and off the road. So let's say, you're at a charging station after a long day, and you need to recharge yourself. Well, with Lucid spaces, a single tap transforms your cabin through visuals, lighting, audio, even massage, immersing you in a soothing atmosphere of, I don't know, the Pacific ocean, the redwoods, the desert or whatever remote corner of the world you would like to escape to. And to take that sense of calm even further, you can enjoy a guided meditation experience, courtesy of our expert partners at Meditopia. It's like your personal space for mindfulness and well-being wherever you are. And for driving, we've created a feature to help ease digital overload of screens because sometimes on the road, less is actually more. So when you need a little digital detox, Gravity reduces your displays to only the essential information needed for driving, creating that sense of calm and clarity. And that's just a quick glimpse into the holistic luxury experience that is Gravity. And of course, this is only the beginning. Through over the year updates, we plan on releasing many more exciting features to indulge your senses. So Peter? Come tell them the biggest news.

So thank you, Derek, and thank you all for joining us today to witness the global debut of Gravity. We're so excited to bring you our new and incredible SUV that encapsulates everything we've learned. Just to recap, Gravity is an all-new 7-seat SUV with exceptional space for all your people and your cargo needs with incredible smart range in excess of 440 miles, more than any other electric car or SUV on the market today other than maybe a Lucid Air, of course, with thrilling performance and world-leading technology without sacrificing maneuverability, both on or off-road with ultimate luxury to reward your body and mind. And the best part, ladies and gentlemen, all of this starts at less than $80,000, less than $80,000. Thank you, thank you, less than $80,000. And if the space in the vehicle wasn't enough, there is one more thing. I'd like to introduce you to frunking. Derek?

Just for the frunk of it.

So what you see before you is an electric SUV without fear of compromise. It's now my pleasure to invite you to experience the draw of Gravity for yourself. Please join me. Thank you.