Electric vehicle (EV) investors who have chosen to hitch a ride with Lucid Group (LCID -4.92%) have a lot of facts and figures to keep track of, from the number of vehicles produced to the number of vehicles delivered to all the data found in the financial statements.
But Lucid investors will want to remain clear about one figure in particular in the coming months -- an especially important data point for a growth company such as this.
NASDAQ: LCID
Key Data Points
Don't lose sight of the capital expenditures
Logging a 74% year-over-year gain in vehicle deliveries for 2024, Lucid deserves recognition for winning over customers with its luxury EVs. The company, however, is driving hard toward achieving further growth as it expands its product lineup. Notably, Lucid plans to offer three midsize models, with the first expected to start production in late 2026.
For insight into Lucid's progress toward meeting this goal, investors should monitor its spending on capital expenditures, or capex, in the coming quarters. During its recent fourth-quarter conference call, management forecast 2025 capex around $1.4 billion as the company continues to expand AMP-1 and AMP-2 manufacturing facilities in Arizona and Saudi Arabia, respectively -- both of which will produce midsize vehicles.
Successful production of midsize vehicles is important for the company's success. Lucid recognizes the midsize vehicle as a way to expand its customer base, as the vehicle will have a lower starting price point -- about $50,000 -- than its Lucid Air luxury sedan and Gravity luxury SUV. Also, most vehicles included in the agreement for 100,000 vehicles with Saudi Arabia are Gravity and midsize vehicles.
Low capex spending could indicate a pothole
Instead of simply taking management at its word, investors should pay close attention to Lucid's capex in the coming quarters. If it comes up short of the expected $1.4 billion, it may be a harbinger of delays in the start of midsize vehicle production -- and maybe additional trouble down the road.
