Lucid Group, Inc.

Hello, and thank you for standing by. Welcome to Lucid's third quarter 2022 earnings conference call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask the questions during the session, you will need to press star 1-1 on your telephone. I would now like to hand the conference over to your speaker for today. Maynard, you may begin.

Thanks, Tawanda, and welcome to Lucid Group's third quarter 2022 earnings call. Joining me today are Peter Rawlinson, our CEO and CTO, and Sherry House, our CFO. Before handing the call over to Peter, let me remind you that some of the statements on this call include forward-looking statements under federal securities law. These include, without limitation, statements regarding the future financial performance of the company, production and delivery volumes, macroeconomic and industry trends, company initiatives, and other future events. These statements are based on predictions and expectations as of today, and actual events or results may differ due to a number of risks and uncertainties. We refer you to the cautionary language and the risk factors in our quarterly report on Form 10-Q for the quarter ended September 30th, 2022, and the forward-looking statements on page two of our investor deck available on the investor relations section of our website at ir.lucidmotors.com. In addition, management will make reference to non-GAAP financial measures during this call. A discussion of why we use non-GAAP financial measures and information regarding reconciliation of our GAAP versus non-GAAP results is available in our earnings press release issued earlier this afternoon, as well as in the investor deck. With that, I'd like to turn the call over to Lucid CEO and CTO, Peter Rawlinson. Peter, please go ahead. Thank you, Maynard.

And thank you, everyone, for joining us for our third quarter earnings call. Now, I'm delighted to say that we've made significant progress towards achieving our 2022 production target of 6,000 to 7,000 vehicles. In Q3, we achieved a record quarterly production of 2,282 vehicles, more than triple that of Q2, and deliveries of 1,398, which is more than double that of Q2. I want to extend a heartfelt thank you to everyone at Lucid for your collective efforts, which have been central to driving these meaningful increases as we scale and ramp production and deliveries. You continue to play a key role in the progress of our production ramp, and in so doing, help getting more customers behind the wheel of their new Lucid heirs. Now, in Q2, we weren't in a position to give you a figure for a weekly production number. But today, I'm pleased to announce that we've now proven our ability to produce 300 cars a week. And even more importantly, we have a visible pathway to our next incremental production rate. And this has been a huge team effort, drawing upon talent from right across the company, We've made some difficult decisions and some systematic changes to the organizational structure. And I think now that the results are beginning to speak for themselves. We're working very hard to control what we can control, but the supply chain situation remains fluid. In fact, even now we're experiencing a challenge with one particular item that will lead to some very temporary time out for the lines. However, we believe we can still achieve our 6,000 to 7,000 production guidance for 2022 despite this particular issue. And during this time, we'll implement a whole batch of improvements that will further enable us to produce even more cars. But turning to logistics, we believe we've made significant progress in our plan to bring our logistics operation in-house. and to restructure our logistics and manufacturing organization. We addressed some of the primary gating factors that impacted production in the second quarter. Steve and David and the new leaders we put in place have been doing a very good job providing valuable leadership in executing this transition. But whilst I'm pleased with our progress, we do have more work to do, but it is my privilege to continue to personally lead this important team effort alongside incredible team here in Arizona. So in fact, I'm joining today's earnings call once again from AMP1 in Arizona, right off the factory floor where we've been very busy. Just last week, we commenced production of the Lucid Air Touring. And I'm looking forward to personally deliver the very first one to a customer next week. Touring is our 620 horsepower dual motor, all-wheel drive version of the Air with a zero to 60 of around 3.2 seconds. And whilst I'm very excited to be able to offer a more affordable version of Air with Touring, I'm equally as excited by Lucid Air Pure, which will be our most affordable Air variant with up to 480 horsepower. We're on track to start production of Pure soon and expect to start delivering the first of these vehicles before year end. So stay tuned next week for our Lucid launch event for a lot more details. But I'll give you a little sneak peek with some numbers. We talked about Grand Touring getting an industry-leading 4.6 miles per kilowatt hour. And now I'm happy to say that Touring we'll be able to match the landmark 4.6 miles per kilowatt-hour efficiency of the Grand Tour, albeit at a more affordable price point. And that's an important incremental step to bringing ultra-efficient EVs more attainable. And we will continue to push relentlessly to get closer to what is our aspirational target of closer to five miles per kilowatt-hour for elucid air. Now, this incredible efficiency is driven in large part by our in-house developed powertrain tech. Many of you heard me say this before. This truly is a technology race. And not all EVs are created equal. We at Lucid enable more miles per kilowatt hour of battery. And this allows us to provide world-leading range with a smaller battery. and so offer exceptional rear-seat ergonomics with a deeper footwell in both the Touring and Pure models. And we continue to garner external validation of our technology prowess through such recent awards as Top 10 Best Engine and Propulsion Systems from Wards Auto. But we're not stopping there. In Q3, we introduced the Sapphire brand, Lucid's new high-performance driver-focused brand. Sapphire represents the pinnacle of electric performance, finally achieving the satisfactory performance that I so long searched for. AirSapphire will be the very first Lucid product to bear the Sapphire name, and will build upon our technical prowess to take electric high performance to next level. At the heart of Lucid Air Sapphire is the three-motor powertrain, the first from Lucid, featuring a brand new twin-motor rear drive unit and a single-motor front drive unit. All developed and manufactured in-house by Lucid. And make no mistake, in terms of performance, efficiency, and compactness, I believe these are truly state-of-the-art The twin rear drive unit introduces new heat exchanger technology and heightened coolant flow rate. In addition, the battery system is upgraded for higher power and more precise thermal logic. And with over 1,200 horsepower, Lucid Air Sapphire is not only the most powerful electric sedan in the world, it is the most powerful sedan in the world. We're regularly testing Sapphire now. In fact, I'm currently personally test driving Sapphire and I'm satisfied with the progress it's making. We expect to start production in the first half of 2023. We're also delighted to say that Project Gravity SUV will be ready to be unveiled soon. We're planning events in early 2023 and we'll begin taking reservations from that moment ahead of the start of production in calendar year 2024. So I'd go so far as to say that I believe the performance metrics of gravity are going to be unsurpassed within its class, further demonstrating our technology prowess. We're going to take the same space concept, the range, the efficiency, technology, design elements, and performance, and apply all that to create what I believe will be truly a landmark SUV. We're readying our factory through phase two here at Amp One in Arizona. Specifically, we're expanding the north end of the body shop to get ready for Project Gravity and the south side of the building. The new assembly halls will run both air and gravity down that line. Now, I believe Gravity can have as much, if not even greater, impact upon the SUV market than air has for the luxury sedan market. And I cannot wait to share more details in the not-too-distant future. Stay tuned for our launch event next week, where we'll go through the Lucid Airline and provide a sneak peek on the Gravity SUV. Now, while I'm very excited by our vehicle roadmap, I'm also thrilled with our software progress, and in particular, the latest UX 2.0 release. We made a very conscious decision to design Lucid Air from the beginning as a truly software-defined vehicle. The synergistic integration of software and hardware engineering results in a vehicle that can get better over time long after customer takes delivery through simply receiving an over-the-air update. Now, during the third quarter, we released 14 over-the-air software updates, more than one per week. Our latest over-the-air software update is the most extensive to date, with significant advancements and improvements across the vehicles. New features include instant on-glass cockpit and pilot panel displays. launch of Highway Assist for the DreamDrive Advanced Driver Assistance System, improved on-screen layouts, and indeed many other features. But I think it's very important to highlight that Lucid Air has always had world-class software. You've likely just never seen it. It's the software that drives the powertrain, the software that manages the batteries, all the software that controls the critical components of the vehicle. In addition to our in-house manufactured technology, software is a key element to Lucid Air's unheralded performance and efficiency. Put simply, we'd never have achieved an EPA estimated 520 miles in the case of the Dream Edition range had it not been for this software. And of course, these components are all over the air updatable as well. Our world-class software team, led by Mike Bell, will be releasing many more features in the very near future. In fact, just last week, we announced SiriusXM's radio audio entertainment experience will be a standard in-dash feature across the full lineup of Lucid vehicles. The beta will be available at no cost to Lucid owners, and in 2023, we expect to deliver the full implementation. Lucid owners will receive a full three-month trial subscription. As everyone may be aware, my bigger picture vision has always been to establish a lucid group of companies that encompass not just cars, but an energy ecosystem as well as a technology licensing. And these are the three pillars, if you will. So we recently launched our Lucid vehicle accessories, which includes the Lucid connected home charging station, the first step into the company's future energy ecosystem. This home charging solution can support up to 19.2 kilowatts of electrical power, which enables charging of up to 80 miles per hour to match Lucid Air's industry-leading fast AC charging rate. The home station will effectively double the rates at which the Lucid Air can be charged when installed at full power compared to the included charging cable. Now, the charging station is also equipped with hardware ready for bi-directional electric power and is Wi-Fi enabled for future over-the-air updates. Turning to our battery strategy, I'm delighted to announce that we recently validated battery cells with another global battery supplier. We expect this agreement, along with our existing agreements with LG and Samsung, to give a sufficient cell supply both in 2022 as well as 2023. And we're working on long-term supply arrangements with numerous suppliers. Indeed, I'd like to take this moment to thank all our suppliers who worked very hard with us during these challenging times. So, to sum up, I'm incredibly proud of the Lucid team and what we've accomplished despite the many challenges that we and the industry faced. In just a short amount of time, we brought our logistics operations in-house, we restructured our logistics and manufacturing operation, we brought in exceptional leadership, We've addressed some of the gating factors impacting Q2 production, and we delivered on the software experience one would truly expect of Elucidare and launched our technology division. And I believe we're only just getting started. We'll deliver variants across the performance and affordability spectrum with Sapphire, Turing, and Pure. We'll begin on our global expansion with the first deliveries into Europe and into Saudi Arabia by the end of the year. We'll unveil Project Gravity SUV early next year, and we'll continue to focus on extending our unsurpassed technology leadership. Lastly, and most importantly, I'd like to thank our customers for your faith in us. I've met a number of you and your families, and your feedback and delight are really a part of what drives me and the whole team here to deliver the quality and experience you truly deserve. We're ramping production as quickly as we can to get more vehicles into the hands of our customers. And I want to reiterate that I firmly believe we're on track to achieve our 6,000 to 7,000 vehicle production guidance for 2022. And with that, let me turn it over to Shari for an update on our financials.