Lucid Motors CEO Peter Rawlinson poses at the Nasdaq MarketSite as Lucid Motors (Nasdaq: LCID) begins trading on the Nasdaq Stock Exchange after completing its business combination with Churchill Capital Corp IV in New York, New York, July 26, 2021.
andrew kelly | Reuters
Electric vehicle maker Lucid Group slashed production targets again on Wednesday as supply chain and logistics challenges mean demand for the company’s electric vehicles far exceeds its 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 it only delivered 679 cars in the second quarter. In February, it said it expected to build between 12,000 and 14,000 vehicles in 2022, down from an initial forecast of 20,000.
It cut its full-year delivery forecast for the second time, saying it now expects to deliver only 6,000 to 7,000 vehicles in 2022, and announced a new senior executive to lead operations.
Shares of Lucid fell about 12% in after-hours trading following the news.
The announcements came as Lucid released its second quarter results. Here are the key numbers:
- Revenue: $97.3 million
- Loss per share: 33 cents
- Vehicles delivered: 679
“Our revised production guidance reflects the extraordinary supply chain and logistics challenges we have encountered,” CEO Peter Rawlinson said in a statement. “We have identified the main bottlenecks and are taking the appropriate measures: integrating our logistics operations, recruiting key personnel into the management team and restructuring our logistics and manufacturing organization.”
Earlier this year, Lucid cited supply chain issues around semiconductor chips as well as core components like glass and carpeting as reasons for the cut.
Rawlinson told CNBC in an interview that the process of resolving supply chain issues has forced the company to face another set of bottlenecks.
“It really exposed the next level of challenges, the immaturity of our logistics systems,” Rawlinson said, explaining that Lucid is integrating shipping and other services internally.
To help resolve the issues, Lucid announced on Wednesday that it has hired Stellantis veteran Steven David as senior vice president of operations, taking over the manufacturing, logistics, and quality control efforts of the company. company.
Chief Financial Officer Sherry House told CNBC that the company’s total of 37,000 reservations does not include any reservations for its upcoming Gravity SUV or any of the vehicles ordered by the Saudi government.
Lucid said in April that the Saudi government had agreed to buy up to 100,000 of its vehicles over the next 10 years. The country’s state fund is a major investor in Lucid, owning around 62% of the company’s shares.
Lucid had $4.6 billion in cash and cash equivalents at the end of the second quarter, up from $5.4 billion at the end of March, but enough to fund operations “through 2023,” House said.
This is a developing story. Please check for updates.