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Lucid tops Q1 EV delivery estimates

Shares of Lucid (LCID) are moving higher in after-hours trading after the company reported better-than-expected first-quarter EV deliveries. The deliveries mark a 40% year-over-year gain compared to last year's figures.

Yahoo Finance Reporter Pras Subramanian joins Market Domination Overtime to break down the latest developments for the auto company and what it means for the EV maker moving forward.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime.

Editor's note: This article was written by Nicholas Jacobino

Video transcript

- Well, let's talk about shares of Lucid. They got a boost after beating first quarter delivery estimates. Yahoo Finance's Pras Subramanian here with the latest. I feel like we have now this collection of the high-end EV makers that are troubled in one way or another to differing degrees. So this is some welcome good news for Lucid investors, right?

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PRAS SUBRAMANIAN: Yeah. You know, a record amount of deliveries here, on 1,967 units delivered, beating estimates of 1,850. So it's a nice little beat there. Interestingly, the production was down at 1,728 or so. So that was really interesting. They produced less than they delivered but maybe had some back orders and things like that. So a boost here for the stock little one at the moment here.

But still some issues like you mentioned, right? So this is still a car Lucid Air, that's not a high volume car. It's an expensive car, sedan, on the luxury end of things. You're never going to get above 2,000, right? That's going to be rare for them, at least in this country. It's going to be hard.

So until you can get that volume play up, how do you handle the immense startup costs that they entail, right, with the factory in Casa Grande? They're making a new factory in Saudi Arabia. Those are huge fixed costs that they have to sort of defray at some point and that the SUV, the Gravity SUV that's going to come out in the end of the year, that can't come out soon enough for them.

- Hmm.