Is Lucid's Cash Burn Out of Control?

Lucid Group (NASDAQ: LCID) reported a slew of disappointing news on Feb. 28 during its fourth-quarter and full-year 2021 earnings call that has sent its stock tumbling to multi-month lows. Headlining the carnage was a revised 2022 production goal, which is now 12,000 to 14,000 units compared to earlier estimates for 20,000 units.

However, Lucid also reported some shocking financial results and guidance, such as $750 million in total 2021 research and development (R&D) costs and an estimated $2 billion in 2022 capital expenditures (capex). Let's break down Lucid's growth plans to determine if the electric vehicle (EV) company's spending is out of control.

Image source: Lucid Group.

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Source Fool.com