Lucid Motors CEO Peter Rawlinson poses at the Nasdaq MarketSite as Lucid Motors (Nasdaq: LCID) begins trading on the Nasdaq exchange following completion of its business combination with Churchill Capital Corp IV in New York City, New York, July 26, 2021 .
Andrew Kelly | Reuters
Electric vehicle manufacturer Lucid Group again cut its production targets on Wednesday as supply chain and logistical challenges mean demand for the company’s EVs far exceeds output.
The company said it now has more than 37,000 reservations for its Air electric luxury sedan, up from more than 30,000 in May, but delivered just 679 cars in the second quarter. In February, it said it expected to build between 12,000 and 14,000 vehicles by 2022, against an original forecast of 20,000.
It lowered its full-year delivery forecast for the second time, saying it now expects to deliver just 6,000 to 7,000 vehicles by 2022, and announced a new senior executive to lead the business.
Shares of Lucid fell about 12% in after-hours trading following the news.
The announcements came as Lucid reported its second quarter results. Here are the main numbers:
- Revenue: $97.3 million
- Loss per share: 33 cents
- Delivered vehicles: 679
“Our revised manufacturing guidelines reflect the extraordinary supply chain and logistics challenges we encountered,” CEO Peter Rawlinson said in a statement. “We have identified the main bottlenecks and are taking appropriate measures: we are bringing our logistics operations under our own management, adding key employees to the executive team and restructuring our logistics and production organisation.”
Earlier this year, Lucid cited supply chain issues around semiconductor chips and basic components such as glass and carpet as reasons for the reduction.
Rawlinson told UKTN in an interview that the process of resolving supply chain issues forced the company to deal with another series of bottlenecks.
“It really revealed the next level of challenges, the immaturity of our logistics systems,” Rawlinson said, explaining that Lucid is in the process of bringing shipping and other services internally.
To address the issues, Lucid announced Wednesday that it has hired Stellaantis veteran Steven David to serve as senior vice president of operations and lead the company’s manufacturing, logistics and quality control efforts. .
CFO Sherry House told UKTN that the company’s 37,000 reservation total does not include reservations for the upcoming Gravity SUV or any of the vehicles ordered by the government of Saudi Arabia.
Lucid said in April that Saudi Arabia’s government had agreed to buy up to 100,000 of its vehicles over the next 10 years. The country’s public equity fund is a major investor in Lucid, owning approximately 62% of the company’s stock.
Lucid had $4.6 billion in cash and equivalents at the end of the second quarter, down from $5.4 billion at the end of March, but enough to fund operations “well into 2023,” House said.
This is a story in development. Come back for updates.