Lucid Group, Inc.

Hello, and thank you for standing by, and welcome to Elusive Group's first quarter 23 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 question during this time, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. I would now like to hand the conference over to Maynard Ump, You may begin.

Thank you, and welcome to Lucid Group's first quarter 2023 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, financial and operating outlook and guidance, 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 most recent filings with the SEC 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 first quarter earnings call. In quarter one we produced 2,314 vehicles and delivered 1,406. Now Sherry will go into more detail on our financials, but I would like to first thank all our employees. We have the best EV on the market. and really, I believe, the best car on the market. And it would not have been possible without the collective efforts of our entire team, which is a direct result of tremendous perseverance, resourcefulness, and teamwork. I want to express my deep personal gratitude to everyone who has contributed to and the teams that will help advance our mission going forward. I'm very excited about our future and the opportunities that lie ahead of us. We have the best EV on the market and really, I believe, the best car on the market. And it would not have been possible without the collective efforts of the entire team. I would like to welcome three new members of the board, Sherish Murakbi, Shabby Nori and Ori Winitzer. Together, they bring significant global experience in the areas of marketing, finance and operations across automotive technology and luxury consumer goods. Now, these additions are a reflection of the company's evolution as we mature to the growth and brand awareness stage of our life cycle. I'd also like to congratulate Turki Alnawiza on his appointment as Lucid's Chairman of the Board, and also thank Andrew Liveris for his guidance during his service as Chairman. And also, a heartfelt thank you to our outgoing Board members, Nancy Joyer, Tony Posavac, and Frank Lindenberg, for their significant contributions and their dedication to Lucid's mission. Now, last quarter, I laid out two key significant strategic priorities for the company. Number one, growth and brand awareness. And number two, a laser focus upon cost. We have taken immediate action on both. We made the decision to adjust our workforce in Q1, given evolving business needs, productivity improvements, and broader economic uncertainty, which we, like many others, are not immune from. Whilst we believe this positions us to be more agile and puts us in the best position for success moving forward, it was nonetheless a difficult decision. Sherry will speak to our cost focus in greater depth. So let me provide an update on our growth and brand awareness progress. Now we continue to make strides in growing our brand awareness. And I'm proud to say that Lucid Air was recently awarded a number of prestigious industry accolades, adding to our existing portfolio of awards, such as the 2022 Motor Trend Car of the Year. At the 2023 New York International Auto Show, Lucid Air was crowned the 2023 World Luxury Car. Lucid Air was also named to be the US News and World Report 2023 Best Hybrid and Electric Cars list for Best Luxury Electric Car. Now these awards reinforce our belief that the Lucid Air is not just the best EV in the world, but the best car available in the world today. The Lucid Air sets a new industry benchmark for range and two versions that were the first EVs to achieve an EPA estimated range over 500 miles. And we set these new standards thanks in part to our groundbreaking in-house developed technology, which continues to garner significant industry attention. In fact, Lucid recently received the 2023 Newsweek Powertrain Disruptor of the Year Award. I cannot underscore enough how advanced our technology is, making it the best in the world on many metrics. I believe that we are years ahead of our next closest competitor, who in turn we believe is several years ahead of their next closest competitor. I believe that as more companies come to the realization that developing world-class power trains is not as easy as we make it look, then we will continue to grow more interest in our patented hardware and software technology from other OEMs. And, in fact, we continue to see interest from multiple parties. As I've said in the past, whilst this is not an area where we put a tremendous amount of proactive attention, I'm pleased with the growing levels of interest and progress that we're receiving with these OEMs. So our technology and know-how is what enables us to have game-changing range, supercar levels of performance, super fast charging, a luxurious and spacious interior, and exceptional aerodynamics. But I also want to stress that the best technology does not mean most complex nor most expensive. In fact, it's quite the opposite. I believe that our vehicles are fundamentally easier to manufacture in many ways than our competitors. And this is done through brilliant in-house engineering, a design for manufacture, and very high degrees, We're using advanced technology to drive down the costs for EVs. We're moving towards more efficient EVs in order to decrease the battery pack sizes, which will enable lower-cost vehicles. And we have much more to come with an exceptional technology roadmap and further enhancements and innovations, pushing the envelope on what's possible, including for our mid-sized platform. Now, looking more near-term, Sapphire is on track for start of production later this summer in mid-September. The Lucid Air Sapphire will feature three motors, carbon ceramic brakes, an aerodynamic package, new sports seats, and track-tuned suspension for a sublime driver-focused sporting experience. It's expected to boast a sub 2 seconds 0 to 60 miles an hour and a sub 4 seconds 0 to 100 miles an hour with a sub 9 seconds quarter mile at a top speed exceeding 200 miles an hour. I've been test driving Sapphire very recently and I'm finding it extremely satisfactory in terms of its performance. I'm also excited to announce that the Gravity SUV entered a new phase of development with road testing having started a couple of weeks ago. Just as the Lucid Air redefined the sedan category, I believe that the Gravity SUV is positioned to do exactly the same for its corresponding SUV category. Indeed, we're taking all the best elements of air and putting them into an SUV. Game-changing range and efficiency, amazing interior space, fast charging performance and luxury. Just last week, I was out in a Gravity on a test drive and I'm delighted with the progress that has been made. Make no mistake, the Gravity SUV will be a true landmark. And we can't wait for you to experience the Gravity SUV at an unveil later this year at which time you'll be able to place a reservation. We think you're going to absolutely love it. Now, in software, we continue to make big strides. We have five over-the-air updates in Q1 with a number of features that customers have been requesting, including CarPlay and scheduled charging. and indeed we're working on many more exciting updates. We're listening intently to what our customers want while simultaneously providing more in-house design features to provide our customers with whatever best-in-class experience they prefer. Now what's more important is to emphasize that we've designed our cast to be over-the-air updatable from the very start. And I believe that there are very few that have the over-the-air capability to the same degree. It's a platform on which we can do so much more. And our last earnings call in February, I spoke about customer awareness of the Lucid brand. We see brand growth happening in stages, starting with the innovators, then early adopters, and moving to early majority and beyond. We believe we're still early on in our customer growth stage of innovators and early adopters. And as we achieve a tipping point in brand visibility, once enough cars are on the road, we will believe we will see a higher velocity of growth. And we continue to take serious action and a holistic, data-driven approach to our marketing programs focused on qualified awareness, digital conversion, test drive experiences, and conversion to orders and deliveries. And we're seeing some early wins. The number of test drives has nearly doubled in the first quarter from the fourth quarter of last year. I believe that seeing is believing, and once you experience the handling, the quality, the performance, and the interior space of Lucid Air for yourself, you'll understand the award-winning nature of our vehicles. We see test drives as the key stepping stone for customers considering the purchase of a Lucid Air. We launched our Dream Ahead Tour last month, which is designed to showcase the Lucid Air's game-changing electric vehicle performance and technology. Consumers will have the opportunity to experience and drive our three Lucid Air models, the Lucid Air Pure, the Lucid Air Touring, and Grand Touring. And they will do that in 42 key cities right across the USA. Now, in fact, the White House promoted our Dream Ahead Tour as part of President Biden's EV acceleration challenge, highlighting actions to encourage EV deployment. I'm also delighted to announce that Andrea Soriani recently joined Lucid as our new head of marketing. Now, Andrea brings over 25 years of experience in luxury brands and automotive, having worked at companies such as Maserati, Ferrari, and Tag Heuer. And we certainly expect the Lucid Air Sapphire and the Gravity SUV to further elevate awareness of the Lucid brand. There are many more grassroots efforts underway capitalizing upon our incredibly passionate customers who are also our biggest advocates. Now, there's a misconception out there that Lucid Air's starting price is far higher than it actually is. Many people out there really believe that the Lucid Air is a $200,000 car. when the fact is that the starting price for a Lucid Air Pure is $87,400, which we believe is a truly compelling offering in the marketplace today. And we're working on ways to achieve broader access. We started deliveries of the Lucid Airs with stealth appearance last month. and will deliver more Lucid Air Dream and Grand Tourings this quarter to customers in the EU and in Saudi Arabia. We've resolved some of the gating items and will continue to focus on ramping up production of stealth appearance and components for international shipments in the second quarter. We expect the Lucid Air Pure volumes in the back half to also ramp with the start of the Lucid Air Pure rear-wheel drive in North America. We're on track to produce over 10,000 vehicles in 2023, with company-wide initiatives ongoing that will enable higher volumes as market conditions allow, and Sherry will go through guidance in greater detail. So in closing, we recognize that we have more work to do, but we're making progress with our strategic priorities and the team is totally energized. Our mission and our optimism are unchanged. We're committed to a more innovative and environmentally sustainable future. designing, building and delivering the best EVs on the market as we expand globally and develop more exceptional vehicles such as the Gravity SUV, which we plan to launch in 2024. I am confident that we have the most advanced technology, we have the right operational infrastructure and the know-how to deliver. And we have a track record of tenacity that will make us stronger. And so with that, let me turn over to Sherry for an update on our financials. Sherry.