D2 - Balance Sheet Analysis Template - Lucid.pptx

Balance Sheet Analysis of Lucid

1. Financial Statement Analysis Market Analyst Joy Zoccola Deliverable 2 – Lucid Motors

2. Executive Summary Draft Asset Analysis: In 2022, total cash and cash equivalents not including short-term investments decreased by $4,527.1 million or 72.3%. Cash used in operating activities increased by $1,168.1 million in 2022 due to “the increase in net loss excluding non-cash expenses and gains of $458.5 million and an overall increase in net operating assets and liabilities of $709.6 million.” Cash used in investing activities increased by $3,261.0 million in 2022 due to purchases of investments of $3,854.1 million and an increase in capital expenditures of $653.6 million. Cash provided in financing activities decreased by $5,789.2 or 81.1% in 2022 due to gross proceeds of about $4,439.2 million from the Merger, net proceeds from the issuance of the 2026 Notes of $2,002.4 million, proceeds from the issuance of Legacy Lucid Series E preferred stock of $600.0 million during the year 2021. Inventory increased by $707.2 million in 2022 seen primarily in raw materials growth of $377.1 million and finished goods growth of $326.4 million due to increased production of the Lucid Air with increased sales as 2022 was the first full year of sales. Lucid grew investments to $2,707.2 million in 2022 which was primarily seen in securities which contributed largely to Lucid’s assets, but due to the large decrease in cash and cash equivalents, there is actually a decrease of $2.5 million in overall assets or 3 basis points. Property, plant, and equipment increased by $984.6 million in 2022 or 83.3% which was primarily from construction in progress which was $1,077.2 million or 49.7% of the property, plant, and equipment. This increase was due to the expansion of AMP-1 and construction of AMP-2, the two Lucid plants. Liability Analysis: The finance lease liabilities increased by $81.7 million in 2022 which was due to Lucid entering into a new four-year lease agreement for land in Casa Grande Arizona. Common stock warrant liabilities decreased by $1,254.2 million or 89.8% in 2022 which was due to change in fair value when remeasured. This led to the overall decrease in liabilities for Lucid of $442.8 million despite the increase in all other aspects of Lucid’s liabilities. Equity Analysis: Overall stockholder’s equity increased by $440.3 million or 11.3% due to increase in stock issued. Additional paid-in capital increased by $1,756.4 million or 17.6% due to the issuance of common stock from Lucid Motors. Treasury stock consisted of 857,825 shares at both year end of 2022 and 2021 that had been repurchased year end 2021 at $24.15 per share but no repurchased stock in 2022. Ratio Analysis: A/R turnover was 53.61, inventory turnover was 3.42, current ratio was 5.24, and debt to equity ratio was 0.46. Lucid had an Altmans Z-score of (0.11) which shows that it is highly likely of becoming bankrupt, but its Piotroski F-score of 4 shows it to be financially stable.

3. Executive Summary ChatGPT Prompt: “You are a detailed financial analyst, rewrite this executive summary for Lucid Motors year end 2022.” Executive Summary: Asset Analysis: Lucid Motors experienced significant changes in its financial position during the year ending 2022. Total cash and cash equivalents, excluding short-term investments, decreased by $4,527.1 million, representing a decline of 72.3%. This reduction was primarily driven by increased cash utilization across various operational and investment activities. Cash utilized in operating activities surged by $1,168.1 million, attributable to a rise in net loss excluding non-cash expenses and gains by $458.5 million, coupled with an overall increase in net operating assets and liabilities amounting to $709.6 million. Investing activities witnessed a substantial increase in cash utilization by $3,261.0 million, primarily due to significant investments in purchases of investments totaling $3,854.1 million and a rise in capital expenditures by $653.6 million. Financing activities provided a reduced cash inflow of $5,789.2 million, marking a decline of 81.1%. This decline can be attributed to various factors, including gross proceeds from the Merger, net proceeds from the issuance of the 2026 Notes, and proceeds from the issuance of Legacy Lucid Series E preferred stock in the preceding year. Inventory witnessed a notable increase of $707.2 million, primarily driven by growth in raw materials and finished goods, reflecting increased production and sales of the Lucid Air throughout 2022. Lucid's investments grew to $2,707.2 million, primarily in securities, contributing significantly to the company's asset base. However, despite this increase, the substantial decrease in cash and cash equivalents resulted in a net decrease of $2.5 million in overall assets. Property, plant, and equipment saw a substantial increase of $984.6 million, primarily attributable to construction in progress related to the expansion of AMP-1 and construction of AMP-2, Lucid's manufacturing plants. Liability Analysis: Finance lease liabilities increased by $81.7 million due to Lucid entering into a new four-year lease agreement for land in Casa Grande, Arizona. Common stock warrant liabilities decreased by $1,254.2 million, primarily due to changes in fair value upon remeasurement. Despite increases in other aspects of liabilities, Lucid experienced an overall decrease in liabilities of $442.8 million. Equity Analysis: Stockholder's equity increased by $440.3 million, driven by an increase in stock issued during the period. Additional paid-in capital rose by $1,756.4 million due to the issuance of common stock by Lucid Motors. Treasury stock remained consistent at 857,825 shares throughout 2021 and 2022, reflecting no repurchases in 2022 following repurchases at year-end 2021. Ratio Analysis: Key ratios depict Lucid's financial performance: Accounts receivable turnover: 53.61 Inventory turnover: 3.42 Current ratio: 5.24 Debt to equity ratio: 0.46 Lucid Motors' Altmans Z-score of (0.11) suggests a high likelihood of bankruptcy, while its Piotroski F-score of 4 indicates financial stability. These scores provide insights into Lucid's financial health and future prospects.

4. FINAL Executive Summary Asset Analysis: In 2022, total cash and cash equivalents not including short-term investments decreased by $4,527.1 million or 72.3% to $1.7 billion. Cash used in operating activities increased by $1,168.1 million in 2022 due to “the increase in net loss excluding non-cash expenses and gains of $458.5 million and an overall increase in net operating assets and liabilities of $709.6 million.” Cash used in investing activities increased by $3,261.0 million in 2022 due to purchases of investments of $3,854.1 million and an increase in capital expenditures of $653.6 million. Cash provided in financing activities decreased by $5,789.2 or 81.1% in 2022 due to gross proceeds of about $4,439.2 million from the Merger in 2021, net proceeds from the issuance of the 2026 Notes of $2,002.4 million, proceeds from the issuance of Legacy Lucid Series E preferred stock of $600.0 million during the year 2021. mostly due to a Net Loss of 1.3B, change in warranty 1.2B and increase in inventory 1.2B against write-downs of 569M Inventory increased by $707.2 million in 2022 primarily driven by growth in raw materials of $377.1 million and finished goods of $326.4 million due to increased production of 7,180 and sales of the Lucid Air of 4,369 in Lucid’s first full year of sales. Lucid increased investments to $2,707.2 million in 2022, primarily seen in securities, but due to the large decrease in cash and cash equivalents, there was a decrease of $2.5 million in overall assets or decrease of 3 basis points. Property, plant, and equipment increased by $984.6 million in 2022 or 83.3% which was primarily from construction in progress which was $1,077.2 million or 49.7% of the property, plant, and equipment. This increase was due to the expansion of AMP-1 and construction of AMP-2, the two Lucid plants. Liability Analysis: The finance lease liabilities increased by $81.7 million in 2022 which was due to Lucid entering into a new four-year lease agreement for land in Casa Grande Arizona. Common stock warrant liabilities decreased by $1,254.2 million or 89.8% in 2022 which was due to change in fair value when remeasured. This led to the overall decrease in liabilities for Lucid of $442.8 million despite the increase in all other aspects of Lucid’s liabilities. Equity Analysis: Overall stockholder’s equity increased by $440.3 million or 11.3% due to increase in stock issued. Additional paid-in capital increased by $1,756.4 million or 17.6% due to the issuance of common stock from Lucid Motors. Treasury stock consisted of 857,825 shares at both year end of 2022 and 2021 that had been repurchased year end 2021 at $24.15 per share but no repurchased stock in 2022. accumulated deficit of 7.4B is significant since Equity is only positive because investors have paid in 11.8B Ratio Analysis: A/R turnover was 53.61, inventory turnover was 3.42, current ratio was 5.24, and debt to equity ratio was 0.46. Lucid had an Altmans Z-score of (0.11) which shows that it is highly likely of becoming bankrupt, but its Piotroski F-score of 4 shows it to be financially stable.

5. Balance Sheet (Assets) Analysis

6. Balance Sheet (Assets) – Overview In thousands ($) 2022 Year ending 12/31/22 % 2021 Year ending 12/31/21 % Cash & Equiv $ 1,735,765 22.0% $ 6,262,905 79.5% A/R 19,542 0.2% 3,148 0.04% AR Turnover 1 53.61 - Inventory 834,401 10.6% 127,250 1.6% Inventory Turns 1 3.42 - Short-term Investments 2,177,231 27.6% - - Prepaid and other current 145,089 1.8% 113,674 1.4% PP&E 2,166,776 27.5% 1,182,153 15.0% Right-of-use 215,160 2.7% 161,974 2.1% Long-term Investments 529,974 6.7% - - Other noncurrent assets 55,300 0.7% 30,609 0.4% Total Assets 7,879,238 100.0% 7,881,713 100.0% (Lucid Group 10K 2023, p.90) 1 ( Mergent , 2024)

7. Cash In thousands ($) 2022 Year ending 12/31/22 % 2021 Year ending 12/31/21 % Cash & Equiv $ 1,735,765 22.0% $ 6,262,905 79.5% Operating Activities (2,226,258) (1,058,133) Investing Activities (3,681,677) (420,693) Financing Activities 1,347,235 7,136,428 Cash & Equiv In 2022, total cash and cash equivalents not including short-term investments decreased by $4,527.1 million or 72.3%. “Our sources of cash are predominantly from proceeds from Lucid’s de-SPAC transaction with Churchill (plus the PIPE Investment), the issuance of convertible debt and proceeds from equity offerings.” (p. 78) Cash equivalents would be all very liquid investments with original maturity of 3 months or less at the date of the purchase. (p. 97) This decrease is due primarily to the purchase of property, plant and equipment of $1,074.9 million, purchases of investments of $3,854.1 million, increase in inventory of $1,256.3 million, and change in fair value of common stock warrant liability of $1,254.2 million. (p. 93) Cash and cash equivalents in 2022 were made up of money market funds of $1,377.5 million, commercial paper of $19.8 million, corporate debt securities of $16.8 million, and the rest was $321.7 million. (p. 108) Cash Used in Operating Activities Cash that was used in operating activities increased by $1,168.1 million or 110.4% in 2022, which was primarily due to “the increase in net loss excluding non-cash expenses and gains of $458.5 million and an overall increase in net operating assets and liabilities of $709.6 million.” (p. 81) Lucid increased their inventory due to planned growth in production which is why we can see the change in net operating assets and liabilities and also due to accounts payable and other current liabilities that have an effect on operating activities. (p.81) “Our cash flows used in operating activities to date have been primarily comprised of cash outlays to support overall growth of the business, especially the costs related to inventory and sale of our vehicles, costs related to research and development, payroll and other general and administrative activities.” (p. 81) Because of Lucid beginning their commercial sales that will continue to grow, they are also increasing their hiring which is why they are expecting cash used in operating activities to grow “significantly before it starts to generate any material cash flows from our business.” (p. 81) (Lucid Group 10K 2023, p.78,81,93,97,108)

8. Cash, cont. Cash Used in Investing Activities Cash that was used in investing activities increased by 3,261.0 million in 2022. This increase in use was due to “purchases of investments of $3,854.1 million during the year ended December 31, 2022 and an increase in capital expenditures of $653.6 million, partially offset by proceeds from maturities of investments of $1,149.7 million and capital expenditure support received from MISA of $97.3 million during the year ended December 31, 2022.” (p. 81) Cash flows regarding investing activities are things like purchases of investments as well as capital expenditures that aid in the growth of Lucid Motors. As Lucid is a startup and still in the early stages of development and growth, they continue to be in the negatives. (p. 81) Just for clarification MISA is Ministry of Investment of Saudi Arabia, who Lucid has an agreement with for economic support for capital expenditures regarding the construction of their second plant located in Saudi Arabia. (p. 80) Of the $97.3 million received from MISA, $64.0 million was deferred liability within other long-term liabilities and $33.3 million was a deduction when finding the carrying amount of related assets. “There are no unfulfilled conditions and contingencies attached to the payments received.” (p. 80) Cash Provided by Financing Activities Cash that was provided by financing activities decreased by $5,789.2 or 81.1% from 2021 to 2022 year end. “The decrease was primarily attributable to gross proceeds of approximately $4,439.2 million from the Merger, net proceeds from the issuance of the 2026 Notes of $2,002.4 million, proceeds from the issuance of Legacy Lucid Series E preferred stock of $600.0 million during the year ended December 31, 2021, partially offset by net proceeds from the issuance of common stock under the At-the-Market Offering of $594.3 million and proceeds from the issuance of common stock under Subscription Agreement of $915.0 million during the year ended December 31, 2022.” (p. 82) Lucid clarifies, “Since inception, we have financed our operations primarily from the issuances of equity securities, including the At-the-Market Offering, the private placement to Ayar , convertible preferred stock, the proceeds of the Merger, and the 2026 Notes.” (p. 81) (Lucid Group 10K 2023, p. 81-82)

9. Accounts Receivable In thousands ($) 2022 Year ending 12/31/22 % 2021 Year ending 12/31/21 % A/R 19,542 0.2% 3,148 0.04% AR Turnover 1 53.61 - A/R Accounts Receivable increased in 2022 by $16,394 primarily due to the increase in sales as 2022 was the first full year of sales of Lucid’s EV. Lucid’s accounts receivable is made up of “receivables from our customers and from financial institutions offering financing products to our customers for the sale of vehicles, sales of powertrain kits and services.” (p. 98) Lucid for any uncollectible amounts has an allowance against accounts receivable, but they had immaterial allowance for uncollectible amounts in 2022 and no allowance in 2021. (p. 98) A/R Turnover Lucid’s A/R turnover ratio was 53.61 in 2022 but they did not have this calculated for 2021. The industry average for A/R turnover according to CSIMarket was 5.32 end of 2022. 2 This being said, Lucid’s A/R turnover is significantly higher than the industry average which means that compared to other EV companies, Lucid is more efficient and aggressive with their credit sales and converts their accounts receivables to cash quicker than the other companies in this industry. (Lucid Group 10K 2023, p.98) 1 ( Mergent , 2024) 2 ( CSIMarket , 2023)

10. Inventory In thousands ($) 2022 Year ending 12/31/22 % 2021 Year ending 12/31/21 % Inventory $ 834,401 100% $ 127,250 100% Raw Materials 464,731 55.7% 87,646 68.9% Work in Process 34,311 4.1% 30,641 24.1% Finished Goods 335,359 40.2% 8,963 7.0% Inventory Turns 1 3.42 - Inventory Inventory increased by $707.2 million from year end December 31 st , 2021 to year end December 31 st , 2022. “Inventories are stated at the lower of cost or net realizable value. Cost is computed using standard cost for vehicles, which approximates actual cost on a first-in, first-out basis.” (p. 98) Lucid’s inventory is also checked to see if its book value is greater than the “net amount realizable upon the ultimate sale of the inventory.” (p. 98) “This requires an assessment to determine the selling price of the vehicles less the estimated cost to convert the inventory on-hand into a finished product. Once inventory is written down, a new, lower cost basis for that inventory is established and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis.” (p. 98) Inventory write-downs totaled to be about $569.5 million as of year end 2022 and $48.9 million as of year end 2021. We can see this increase due to increased inventory due to more production with the start of Lucid’s sales of their vehicle the Lucid Air. (p. 88, 105) These write-downs are taken into account for “excess or obsolete inventories based upon assumptions about current and future demand forecasts. If inventory on-hand is in excess of future demand forecast, the excess amounts are written-off.” (p. 98) If Lucid did potentially have changes in their estimates of their sales prices or costs of productions, they could be in need of making changes that could be an increase to their inventory write-downs and could also be material write-downs. (p. 98) 1 ( Mergent , 2024) (Lucid Group 10K 2023, p.88,98,105)

11. Inventory In thousands ($) 2022 Year ending 12/31/22 % 2021 Year ending 12/31/21 % Inventory $ 834,401 10.6% $ 127,250 1.6% Raw Materials 464,731 55.7% 87,646 68.9% Work in Progress 34,311 4.1% 30,641 24.1% Finished Goods 335,359 40.2% 8,963 7.0% Inventory Turns 1 3.42 - Raw Materials Raw materials increased by $377.1 million in the year 2022. Work in Progress Lucid’s work in progress inventory increased in 2022 by $3.7 million or 12.0%. The work in progress for Lucid was related to “the production of vehicles for sale.” (p. 105) Finished Goods Finished goods inventory for Lucid increased by $326.4 million in the year 2022. Finished goods inventory included “new vehicles available for sale and vehicles in transit to fulfill customer orders.” (p.105) Inventory Turnover Lucid’s inventory turnover ratio was 3.42 in 2022 and Mergent did not have this for 2021. The industry average according to CSIMarket was 11.55 end of year 2022 and end of the 3 rd quarter of 2023 is down to 7.82. 2 This being said, we can see that Lucid’s inventory turnover end of 2022 was lower then the industry average meaning they did not perform as well as other companies in the industry. This is primarily due to the lack in demand for luxury EV’s in favor of other cheaper EVs as well as vehicles from traditional automotive competitors. (p. 26) 1 ( Mergent , 2024) 2 ( CSIMarket , 2023) (Lucid Group 10K 2023, p. 26,105)

12. Short-term and Other Current Assets In thousands ($) 2022 Year ending 12/31/22 % 2021 Year ending 12/31/21 % Short-term Investments 2,177,231 27.6% - - Prepaid and other current 145,089 1.8% 113,674 1.4% Short-term Investments Lucid’s short-term investments are classified as available-for-sale securities. (p.107) Short-term investments in 2021 were nil and increased to $2,177.2 million in 2022. These investments in year end 2022 were made up of U.S. treasury securities of $1,570.6 million, U.S. government agency securities of $43.5 million, certificates of deposit of $174.0 million, commercial paper of $218.4 million, and corporate debt securities of $170.8 million. (p. 108) Prepaid and other current assets Prepaid expenses actually decreased from $70.3 million in 2021 to $63.5 million in 2022, which was a decrease of $6.8 million or 9.7%. (p. 90) This decrease indicates less cash being spent on current expenses in 2022, which would help in increasing cash flow. Other currents assets increased from $43.3 million in 2021 to $81.5 million in 2022, which was an increase of $38.2 million or 88.2%. (p. 90) Other current assets is “primarily related to letters of credit issued to the landlords for certain of the Company’s leased facilities. (p. 97) In 2022 Lucid had restricted cash that was included in other current assets that totaled $1.6 million which decreased by $9.2 million from $10.7 million in 2021. This was an 85.5% decrease from 2021 to 2022. (p. 97) There was $7.5 million at year end 2022 of accrued interest receivable that was excluded from the fair value and amortized cost basis of available-for-sale securities that was included in other current assets for Lucid. (p. 108) Lucid had immaterial realized gains or losses on the sale of available-for-sale securities in 2022. (p. 108) (Lucid Group 10K 2023, p. 90,97,107-108)

13. Noncurrent Assests In thousands ($) 2022 Year ending 12/31/22 % 2021 Year ending 12/31/21 % PP&E, net 2,166,776 27.5% 1,182,153 15.0% Right-of-use 215,160 2.7% 161,974 2.1% Long-term Investments 529,974 6.7% - - Other noncurrent assets 55,300 0.7% 30,609 0.4% Property, Plant, and Equipment, net The net of Lucid’s property, plant, and equipment after accumulated depreciation and amortization of $273.1 million came to the $2,166.8 million in 2022. (p. 105) This was an increase of $984.6 million from 2021 to 2022 or an increase of 83.3% which was primarily from construction in progress which was $1,077.2 million of property, plant, and equipment. Construction in progress was 49.7% of net property, plant, and equipment and increased by $800.3 million from 2021 to 2022. (p. 105) “Construction in progress represents the costs incurred in connection with the construction of buildings or new additions to the Company’s plant facilities including tooling, which is with outside vendors. Costs classified as construction in progress include all costs of obtaining the asset and bringing it to the location in the condition necessary for its intended use. No depreciation is provided for construction in progress until such time as the assets are completed and are ready for its intended use.” (p. 106) This was made up of machinery and tooling, construction of AMP-1 and AMP-2 (the two manufacturing facilities of Lucid), and leasehold improvements. (p. 106) PP&E also includes land and land improvements, building improvements, machinery tooling and vehicles, computer equipment and software, leasehold improvements, furniture and fixtures, and finance leases. (p. 105) Finance leases did increase by $84.4 million and land and land improvements by $63.6 million in 2022 which were the other largest increases within PP&E for Lucid. (Lucid Group 10K 2023, p. 105-106)

14. Noncurrent Assests In thousands ($) 2022 Year ending 12/31/22 % 2021 Year ending 12/31/21 % Right-of-use 215,160 2.7% 161,974 2.1% Long-term Investments 529,974 6.7% - - Other noncurrent assets 55,300 0.7% 30,609 0.4% Right-of-use Right-of use increased by $53.2 million or 32.8% in 2022 for Lucid Motors. Operating lease assets made up right-of-use assets. (p. 121) “In February 2022, we entered into a lease agreement with KAEC, a related party of PIF, which is an affiliate of Ayar , for our first international manufacturing plant in Saudi Arabia. The lease has an initial term of 25 years expiring in Year 2047. As of December 31, 2022, the right-of-use assets and lease liabilities related to this lease were $4.8 million and $5.4 million, respectively. The lease expense recorded for the year ended December 31, 2022 was immaterial.” (p. 128) Long-term Investments Lucid’s long-term investments are classified as available-for-sale securities. (p. 107) There were no long-term investments recorded in 2021 for Lucid Motors. Long-term investments for Lucid were made up of U.S. treasury securities at $281.6 million and of corporate debt securities at $248.4 million. (p. 107) Other noncurrent assets Other noncurrent assets are “primarily related to letters of credit issued to the landlords for certain of the Company’s leased facilities.” (p. 97) “As of December 31, 2022, the Company had no outstanding borrowings and $37.4 million outstanding letters of credit under the ABL Credit Facility. Availability under the ABL Credit Facility was $441.4 million (including $37.3 million cash and cash equivalents) as of December 31, 2022, after giving effect to the borrowing base and the outstanding letters of credit. The Company incurred issuance costs of $6.3 million to obtain the ABL Credit Facility, which was capitalized within Other noncurrent assets on consolidated balance sheets and amortized over the facility term using the straight-line method. During the year ended December 31, 2022, amortization of the deferred issuance costs and commitment fee were $2.1 million.” (p. 111) Cash collateral is also within other noncurrent assets. (p. 100) (Lucid Group 10K 2023, p. 97,100,107,111,121,128)

15. Balance Sheet (Liabilities & Equity) Analysis

16. Balance Sheet (Liabilities & Equity) – Overview In thousands ($) 2022 Year ending 12/31/22 % 2021 Year ending 12/31/21 % A/P and Accruals $ 292,406 3.7% $ 73,706 0.9% Current Ratio 1 5.24 　 16.43 　 Other current liabilities 634,567 8.1% 318,212 4.0% Long-Term Debt 1,991,840 25.3% 1,986,791 25.2% Finance Leases (Current & Long-Term) 91,922 1.2% 10,266 0.1% Common stock warrant 140,590 1.8% 1,394,808 17.7% Other long-term liabilities 378,212 4.8% 188,575 2.4% Total Liabilities 3,529,537 44.8% 3,972,358 50.4% Equity 4,349,701 55.2% 3,909,355 49.6% Additional paid-in capital 11,752,138 149.2% 9,995,778 126.8% Treasury Stock (20,716) (0.3%) (20,716) (0.3%) Total Debt to Equity Ratio 1 0.46 　 0.51 　 1 ( Mergent , 2024) (Lucid Group 10K 2023, p.98)

17. Payables In thousands ($) 2022 Year ending 12/31/22 % 2021 Year ending 12/31/21 % A/P and Accruals $ 292,406 3.7% $ 73,706 0.9% Current Ratio 1 5.24 　 16.43 　 Other current liabilities 634,567 8.1% 318,212 4.0% A/P and Accruals Lucid’s A/P and accruals increased by $218.7 million in 2022. Of A/P $180.5 million was cash provided for operating activities (p. 93) Included in cash provided for operating activities was also $31.0 million of accrued compensation. (p. 93) Within Lucid’s A/P and accruals was also $42.7 million in purchases of property, plant and equipment. (p. 94) Other Current Liabilities “The GIB Facility Agreement contains certain conditions precedent to drawdowns, representations and warranties and covenants of Lucid LLC and events of default. As of December 31, 2022, we had outstanding borrowings of SAR 36 million (approximately $9.6 million) with interest rate of 6.40% from the Working Capital Facility, which was recorded within Other current liabilities on the consolidated balance sheets.” (p. 80) “During the year ended December 31, 2022, we received support of SAR 366 million (approximately $97.3 million) in cash, of which $64.0 million was recorded as deferred liability within Other long-term liabilities.” (p. 80) Within other current liabilities, $269.4 million was cash provided to operating activities. (p. 92) Also included in current liabilities would be engineering, design, and testing accrual, construction in progress, accrued purchases (“primarily represent inventory purchases and related transportation charges that had not been invoiced), retail leasehold improvements accrual, other professional services accrual, tooling liability, short-term borrowings, operating lease liabilities current portion, and other current liabilities. (p. 106) 1 ( Mergent , 2024) (Lucid Group 10K 2023, p. 80,92-94,106)

18. Payables, cont. In thousands ($) 2022 Year ending 12/31/22 % 2021 Year ending 12/31/21 % A/P and Accruals $ 292,406 3.7% $ 73,706 0.9% Current Ratio 1 5.24 　 16.43 　 Other current liabilities 634,567 8.1% 318,212 4.0% Current Ratio Current ratio decrease significantly from 16.43 in 2021 to 5.24 in 2022. This decrease is primarily due to the increase in Lucids current liabilities and decrease in current assets. (p. 90) Total current assets decreased from $6,507.0 million to $4,912.0 million from 2021 to 2022 and current liabilities increased from $396.2 million to $937.6 million. (p. 90) Current ratio or working capital ratio as called by CSIMarket for the EV, Auto & Truck Manufacturers Industry is 1.34 at year end 2022. 2 Based on this information Lucid is doing well compared to others in the industry regarding their current ratio. This shows that it has more of a capacity to pay its short-term liabilities than most of its competitors. This is because so many investors have bought their stock - which went into cash. 1 ( Mergent , 2024) 2 ( CSIMarket , 2023) (Lucid Group 10K 2023, p. 90)

19. Payables, cont. In thousands ($) 2022 Year ending 12/31/22 % 2021 Year ending 12/31/21 % Long-Term Debt 1,991,840 25.3% 1,986,791 25.2% Finance Leases (Current & Long-Term) 91,922 1.2% 10,266 0.1% Common Stock Warrant 140,590 1.8% 1,394,808 17.7% Long-term Debt “We and our subsidiaries have incurred and may be able to incur substantial additional debt in the future, subject to the restrictions contained in our debt instruments, some of which may be secured debt. The ABL Credit Facility imposes certain restrictions on our ability to incur additional debt, but we are not restricted under the terms of the indenture governing our 2026 Notes from incurring additional debt, securing existing or future debt, recapitalizing our debt or taking a number of other actions that are not limited by the terms of such indenture governing our 2026 Notes that could have the effect of diminishing our ability to make payments on our 2026 Notes when due.” (p. 60) “During the year ended December 31, 2022, the Company entered into a loan agreement with the Saudi Industrial Development Fund (“SIDF”) with an aggregate principal amount of up to approximately $1.4 billion, revolving credit facilities with Gulf International Bank (“GIB”) in an aggregate principal amount of approximately $266.1 million and a new five-year senior secured asset-based revolving credit facility (“ABL Credit Facility”) with an initial aggregate principal commitment amount of up to $1.0 billion.” (p. 95) “The 2026 Notes are unsecured obligations which bear regular interest at 1.25% per annum and will be payable semiannually in arrears on June 15 and December 15 of each year, beginning on June 15, 2022. The 2026 Notes will mature on December 15, 2026, unless repurchased, redeemed, or converted in accordance with their terms prior to such date.” (p. 109) These notes are able to be converted into cash or into shares Class A common stock, and even a combination of both of these. These loans can be converted at an initial conversion price of about $54.78 per share of Lucid’s Class A common stock. (p. 109) Lucid “may redeem for cash all or any portion of the 2026 Notes, at the Company’s option, on or after December 20, 2024 if the last reported sale price of our Class A common stock has been at least 130% of the conversion price then in effect for at least 20 trading days at a redemption price equal to 100% of the principal amount of the 2026 Notes to be redeemed, plus accrued and unpaid interest up to the day before the redemption date.” (p. 109) (Lucid Group 10K 2023, p. 60,95,109)

20. Payables, cont. In thousands ($) 2022 Year ending 12/31/22 % 2021 Year ending 12/31/21 % Long-Term Debt 1,991,840 25.3% 1,986,791 25.2% Finance Leases (Current & Long-Term) 91,922 1.2% 10,266 0.1% Common Stock Warrant 140,590 1.8% 1,394,808 17.7% Finance Leases (Current & Long-term) The finance leases increased by $81.7 million in 2022 which was due to Lucid entering into a new four-year lease agreement for land in Casa Grande Arizona. (p. 120) “In August 2022, the Company entered into a four-year agreement (“Lease Agreement”) to lease land in Casa Grande, Arizona adjacent to our manufacturing facility. The Company classified this lease as a finance lease because the Lease Agreement contains a purchase option which the Company is reasonably certain to exercise. As of December 31, 2022, assets and liabilities associated with the finance lease were $79.3 million and $81.1 million, respectively. “ (p. 120) “As of December 31, 2022, the Company entered into additional leases for facilities and equipment that have not yet commenced with undiscounted future lease payments of $26.8 million. The leases are expected to commence over the next twelve months.” (p. 122) Common Stock Warrant Common stock warrant liabilities decreased by $1,254.2 million or 89.8% in 2022 which was due to change in fair value. (p. 109) “Our common stock warrant liability relates to the privately placed common stock warrants (the “Private Placement Warrants”) to purchase shares of Lucid Group common stock that were effectively issued upon the Closing in connection with the reverse recapitalization treatment of the Merger.” (p. 77) “The Private Placement Warrants remained unexercised as of December 31, 2022. The liability was remeasured to fair value, resulting in a gain of $1,254.2 million and a loss of $582.8 million for the years ended December 31, 2022 and 2021, respectively, and was classified within change in fair value of common stock warrant liability in the consolidated statements of operations and comprehensive loss.” (p. 77) “On July 23, 2021, in connection with the reverse recapitalization treatment of the Merger, the Company effectively issued 44,350,000 Private Placement Warrants to purchase shares of Lucid’s common stock at an exercise price of $11.50. The Private Placement Warrants were initially recognized as a liability with a fair value of $812.0 million and was remeasured to fair value of $1,394.8 million as of December 31, 2021. The Private Placement Warrants remained unexercised and were remeasured to fair value of $140.6 million as of December 31, 2022. The Company recognized a gain of $1,254.2 million and a loss of $582.8 million for the years ended December 31, 2022 and 2021, respectively, in the consolidated statements of operations and comprehensive loss.” (p. 113) (Lucid Group 10K 2023, p. 77,109,113,120,122)

21. Equity In thousands ($) 2022 Year ending 12/31/22 % 2021 Year ending 12/31/21 % Equity 4,349,701 55.2% 3,909,355 49.6% Additional paid-in capital 11,752,138 149.2% 9,995,778 126.8% Treasury Stock (20,716) (0.3%) (20,716) (0.3%) Total Debt to Equity Ratio 1 0.46 　 0.51 　 Equity Overall stockholder’s equity increased by $440.3 million or 11.3% due to increase in stock issued. (p. 90) “On November 8, 2022, the Company entered into an equity distribution agreement (the “Equity Distribution Agreement”) with BofA Securities, Inc., Barclays Capital Inc. and Citigroup Global Markets Inc., under which the Company could offer and sell shares of its common stock having an aggregate offering price up to $600.0 million (the “At-the-Market Offering”).” (p. 70) Lucid issued 56,203,334 shares during 2022 “at a weighted average price per share of $10.68, and received net proceeds of $594.3 million after deducting commissions and other issuance costs of approximately $5.7 million. No shares remain available for sale under the Equity Distribution Agreement.” (p. 70) On November 8, 2022, the Company also entered into the Subscription Agreement, pursuant to which Ayar agreed to purchase from the Company, up to $915.0 million of shares of its common stock in one or more private placements through March 31, 2023. In December 2022, the Company issued 85,712,679 shares to Ayar pursuant to the Subscription Agreement at a weighted average price per share of $10.68, and received aggregate proceeds of $915.0 million.” (p 116) 1 ( Mergent , 2024) (Lucid Group 10K 2023, p. 70,90,116)

22. Equity, cont. In thousands ($) 2022 Year ending 12/31/22 % 2021 Year ending 12/31/21 % Equity 4,349,701 55.2% 3,909,355 49.6% Additional paid-in capital 11,752,138 149.2% 9,995,778 126.8% Treasury Stock (20,716) (0.3%) (20,716) (0.3%) Total Debt to Equity Ratio 1 0.46 　 0.51 　 Equity, cont. “Preferred stock, par value $0.0001; 10,000,000 shares authorized as of December 31, 2022 and 2021; no shares issued and outstanding as of December 31, 2022 and 2021.” (p. 90) “Common stock, par value $0.0001; 15,000,000,000 shares authorized as of December 31, 2022 and 2021; 1,830,172,561 and 1,648,413,415 shares issued and 1,829,314,736 and 1,647,555,590 shares outstanding as of December 31, 2022 and 2021, respectively.” (p. 90) “On July 23, 2021, in connection with the reverse recapitalization treatment of the Merger, the Company effectively issued 425,395,023 new shares of common stock upon the Closing. The Company also converted all 1,155,909,367 shares of its issued and outstanding convertible preferred stock into 1,155,909,367 new shares of common stock as of the Closing of the Merger based upon the conversion rate as calculated pursuant to Legacy Lucid’s memorandum and articles of association. Immediately following the Merger, there were 1,618,621,534 shares of common stock outstanding with a par value of $0.0001. The holder of each share of common stock is entitled to one vote.” (p. 116) Lucid did not purchase equity securities. (p. 71) There were 200 holders of Lucid’s common stock on record as of January 31, 2023, and Lucid has not paid any dividends on common stock. (p. 70) Additional Paid-in Capital From paid in capital $36.2 million was reduced which was made up of transaction costs that were allocable to equity-classified instruments like common stock and publicly traded common stock warrants. (p. 78) This increased by $1,756.4 million or 17.6% due to the issuance of common stock from Lucid Motors. (p. 92) 1 ( Mergent , 2024) (Lucid Group 10K 2023, p. 71,78,90,92,116)

23. Equity, cont. In thousands ($) 2022 Year ending 12/31/22 % 2021 Year ending 12/31/21 % Equity 4,349,701 55.2% 3,909,355 49.6% Additional paid-in capital 11,752,138 149.2% 9,995,778 126.8% Treasury Stock (20,716) (0.3%) (20,716) (0.3%) Total Debt to Equity Ratio 1 0.46 　 0.51 　 Treasury Stock There were 857,825 shares at both year end of 2022 and 2021. (p. 90) These shares had been repurchased year end 2021, and of these shares 712,742 were from certain employees, 145,083 from Board of Directors of Lucid’s previous owner Atieva , Inc. at $24.15 per share. No repurchased stock in 2022. (p. 117) Debt to Equity Ratio This ratio actually decreased from 2021 to 2022 for Lucid. This was primarily due to the increase in equity and decrease in liabilities. Total liabilities decreased by 11.1% in the year 2022 while total shareholder’s equity increased by 11.3%. 1 dollar of debt for every 2 dollars of Equity. 1 ( Mergent , 2024) (Lucid Group 10K 2023, p. 90,117)

24. Altman’s Z-Score 3 (in thousands) as of year end December 31 st , 2022 Z-score = (1.2×A) + (1.4×B) + (3.3×C) + (0.6×D) + (1.0×E) where: A = Working Capital (current assets – current liabilities) /Total Assets: (4,912,028 – 937,559) / 7,879,238 = 0.504 B = Accumulated Deficit/Total Assets: -7,370,332 / 7,879,238 = -0.935 C = Loss Before Interest & Tax/Total Assets: -1,330,241 / 7,879,238 = -0.169 D = Market Value of Equity/Total Liabilities: (1,829,314,736 shares x $3.46) / 3,529,537 = 1.793 E = Sales/Total Assets: 608,181 / 7,879,238 = 0.077 Lucid Z-score = (1.2×0.504) + (1.4×-0.935) + (3.3×-0.169) + (0.6×1.793) + (1.0×0.077) Lucid Z-score = -0.1091 Altman’s Z-score is a formula that is made to show and inform the likelihood of a company going bankrupt. As Investopedia informs, a Z-score above 3.0 would exemplify positive financial health, but a Z-score that of below 1.8 would show a high risk of bankruptcy. Knowing this, we can see that Lucid’s Z-score of (0.11) shows that Lucid Motors has a high risk of going bankrupt in the near future. 3 (McClure, n.d.) (Lucid Group 10K 2023)

25. Piotroski F-Score 4,5 Piotroski F-Score = 4 According to Investopedia, Piotroski F-Score “is a ranking between zero and nine that incorporates nine factors that speak to a firm's financial strength.” “The nine aspects are based on accounting results over a number of years; a point is awarded each time a standard is met, resulting in an overall score.” When a company has an f-score of 8-9, that represents a positive value, but if a company has a f-score that falls within 0-2, this would represent a bad value. Lucid’s f-score was a 4 according to GuruFocus. 5 This score shows that Lucid’s financial situation is relatively typical for its current situation. 4 (Investopedia, n.d.) 5 ( GuruFocus , 2024) (Lucid Group 10K 2023)

26. References ChatGPT. (2024). Wikipedia. Retrieved January 31, 2024, from https://chat.openai.com/c/5e4eb2d4-7751-49b1-81e4-aed66a538e89 CSIMarket . (2023). EV, Auto & Truck Manufacturers Industry Efficiency, Revenue per Employee, Inventory and Receivable Turnover Ratios Q3 2023. CSIMarket . Retrieved January 26, 2024, from https://csimarket.com/Industry/industry_Efficiency.php?ind=404 GuruFocus . (2024). Lucid Group (NAS:LCID) Piotroski F-Score. Wikipedia. Retrieved January 31, 2024, from https://www.gurufocus.com/term/fscore/LCID/Piotroski-F-Score/Lucid-Group Investopedia. (n.d.). What Is a Piotroski Score? Definition, Meaning, and Example. Investopedia. Retrieved January 31, 2024, from https://www.investopedia.com/terms/p/piotroski-score.asp Lucid Group. (2023, February 28). Form 10-K for Lucid Group INC filed 02/28/2023. Lucid Group. Retrieved January 31, 2024, from https://ir.lucidmotors.com/static-files/907e173b-fe2d-4bfe-b91f-32cf9e30c6a3 McClure, B. (n.d.). How to Calculate an Altman Z-Score. Investopedia. Retrieved January 31, 2024, from https://www.investopedia.com/articles/fundamental/04/021104.asp Mergent Online. (2024). Wikipedia. Retrieved January 26, 2024, from https://www.mergentonline.com/companyfinancials.php?pagetype=ratios&compnumber=1449074