Lucid Group, Inc.

Hello, and thank you for standing by. Welcome to Lucid Group's second quarter 2023 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask the question during the session, 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. Sir, you may begin.

Thank you, and welcome to Lucid Group's second 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 the 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 second quarter earnings call. We hit several major milestones in Q2, none of which could have been accomplished without the incredible commitment of our employees. Thank you to the Lucid team for your passion and dedication in driving our mission forward. We also have many exciting events and announcements planned in the second half of this year that I'm very eager to share with you. But before I do, let me start with our major Q2 milestones and provide an update on our progress of our initiatives. In June, we announced a landmark agreement with Aston Martin, providing them access to our Sapphire electric vehicle powertrain technology. Indeed, Sapphire enabled Aston Martin EVs. Aston Martin chose Lucid following a competitive process to ensure that they accessed what they felt was not only the best, but also the most advanced and suitable technology available on the planet. This agreement represents the advent of a core pillar of Lucid Group, namely our technology supply and licensing, and in so doing, reaffirms the commercial value of our patented technologies. We believe this could represent a harbinger of future opportunities, not only in applications for the automotive market, but also in markets such as commercial transportation and even aviation. Also, in the second quarter, we raised $3 billion in capital to fund the forward business, removing financial concern and demonstrating the strength of our partnership with our core partner, the Public Investment Fund. Sherry will go into greater financial detail on both the Aston Martin Agreement and the capital raise later in her prepared remarks. In Q2, we produced 2,173 vehicles and delivered 1,404. In addition, we had a significant number of vehicles that were in transit to Saudi Arabia. These are cars which were produced but not yet delivered, which we have started delivering to customers in Q3. And Sherry will further elaborate upon this as well. Over the last two quarters, I spoke about the company's two strategic priorities, growing brand awareness and cost efficiencies. Now, whilst we still have work to do, I'm pleased to say that some of the initiatives we've actioned are seeing solid progress. We saw another strong increase in the number of test drives sequentially through Q2, and the third-party data shows that our brand awareness in the luxury and premium segment is growing to a much stronger place. And as our fleet size grows, so does the number of Lucid Air sightings. We believe that there is a marketing and demand benefit when we achieve a critical mass of vehicles on the road, and we're making headway here. We continue to garner strong accolades and received an authoritative independent summary of how Lucid Air stacks up against the competition with Motor Trend most recently naming the Lucid Air the best electric luxury vehicle you can buy in 2023. It's also important to highlight that Lucid is being asked with increasing frequency by government and non-government organization partners to showcase our cars and technology at a growing number of events in the US and Europe. Our name recognition and positive brand associations are growing significantly in the government, trade associations, and non-government organization space. We'll also be launching a customer referral program, which we think will get our loyal customers excited about the opportunities for both physical and experiential redemptions. Our customers are some of our most ardent advocates, and we want to reward them for their fervor. With our brand awareness moving in the right direction, we're now putting more energy behind it to capitalize upon the interest, including the recent reinstatement of Lucid's original pricing. And Sherry will talk more about this in her prepared remarks. So looking into the second half of the year, we have many exciting events and announcements coming. We're on track to execute on deliveries under the purchase agreement with the government of Saudi Arabia and thus far I'm pleased with consumer and government demand in the region. In September, we expect to start producing Lucid Air Pure rear-wheel drive. Now, the Pure rear-wheel drive will be able to achieve 419 miles on an EPA cycle with just an 88-kilowatt-hour battery pack. And let me do the quick math for you. This equates to an efficiency of approximately 4.74 miles per kilowatt-hour. Indeed, at 4.74 miles per kilowatt hour, the single-motor Lucid Air Pure tops every other EV on the U.S. market. What this efficiency means for customers is the ability to go further with less battery. And because the battery is smaller, this means in turn that the car weighs less, is more agile, and more importantly, can cost less. than a vehicle of similar range which needs a larger battery pack. To get greater distance, smaller battery, lower materials cost, lower running cost, lower total cost of ownership, immense interior space, and much better for the environment. And what really excites me is this technology that enables this 4.74 miles per kilowatt hour for air will in turn enable more affordable products in the future. In fact, as the price of the vehicle goes down, the cost of the battery becomes even more significant because it is the largest single cost of the vehicle. This is where efficiency becomes most critical. Now, I've been asked many times, Lucid has an advantage for now, but how long before others go and catch up? And my reply to this is always the same. Far from this gap shrinking, we're working assiduously to grow that gap because it's critical to the planet that we achieve higher efficiency EVs. Achieving the 4.74 miles per kilowatt hour is testament to that. And we won't stop pushing the envelope on our technology. Work has been well underway on our next-generation power technology for our mid-sized platform. Now, also in September, we plan to commence production of Sapphire. Pre-production has, in fact, already begun, and we've held a number of viewings for media and early customers already. Sapphire will boast a 0-60 time of 1.89 seconds, a 0-100 mph time of 3.84 seconds, and a standing quarter mile time of 8.95 seconds. But whilst I think the power and the performance is impressive, I can only begin to tell you how immensely delightful and responsive Sapphire is just to drive normally, even when you choose to exploit a mere fraction of the performance. This, to me, is one of its most surprising, engaging, even endearing attributes. Sapphire uses hyper car performance, delightful handling, the tractability and turn-in response of torque vectoring with everyday usable in an unprecedented combination. Then in October, we'll be hosting a special launch event as well as making the first Sapphire customer deliveries. Now outside of the North America, we are continuing to expand our footprint. We plan to open our Dusseldorf studio in late September, and I'm particularly excited about the prospects for this market. We took the Lucid Air Dream Performance to the Autobahn, where its best-in-class drag coefficient, range, and high-speed stability turn many heads on some of the most iconic roads in Europe. Now also in September, we plan to have the opening ceremony for our manufacturing facility in Saudi Arabia. We're incredibly excited about this official opening of our second Lucid factory and our first manufacturing facility outside of the United States. And finally, the announcement everyone has hotly been anticipating. unveil the lucid air, lucid gravity to the world in November at a special launch event that will be live screened for everyone to watch. We push seven over-the-air software updates with some major enhancements. I can't emphasize enough the significance of our ability to enhance almost every part of the vehicle with software updates. And we have a more significant vision for our software strategy, one that we think very, very few in the industry can match. And I'm really excited about the long-term potential here. Please stay tuned. So to sum up, despite an uncertain macro environment, I'm very excited about the back half of this year. We plan to start executing on purchase agreement with the government of Saudi Arabia, produce and deliver pure rear wheel drive, produce and deliver Sapphire, officially opening a manufacturing facility in Saudi Arabia, and, of course, unveil Gravity at our marquee launch event in November. And more to come that we're not quite ready to announce yet. I really cannot wait for you to experience these amazing cars. And with that, let me turn it over to Sherry for an update on our financials. Sherry.