Lucid Motors CEO Peter Rawlinson poses at the Nasdaq MarketSite as Lucid Motors (Nasdaq: LCID) begins trading on the Nasdaq stock market after completing its business combination with Churchill Capital Corp IV in New York City, New York, July 26, 2021.
Andrew Kelly | Reuters
Electric vehicle maker Lucid Group again cut its production targets on Wednesday as supply chain and logistics challenges mean demand for the company’s EVs far exceeds its output.
The company said it now has over 37,000 bookings for its Air luxury electric sedan, up from more than 30,000 in May – but it delivered just 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 guidance for full-year deliveries for the second time, saying it now expects to deliver just 6,000 to 7,000 vehicles in 2022, and announced a new senior executive to lead operations.
Lucid shares fell about 12% in after-hours trading following the news.
The announcements came after Lucid reported its second quarter results. Here are the key numbers:
- Income: 97.3 million dollars
- Loss per share: 33 cents
- Delivered vehicles: 679
“Our revised production guidance reflects the tremendous supply chain and logistics challenges we faced,” CEO Peter Rawlinson said in a statement. “We have identified the key bottlenecks and are taking the appropriate measures – bringing our logistics operations in-house, adding key hires to the executive team and restructuring our logistics and manufacturing organization.”
Earlier this year, Lucid cited supply chain issues around semiconductor chips as well as core components such as glass and carpet as reasons for the reduction.
Rawlinson told CNBC in an interview that the process of working through supply chain issues forced the company to face another set of obstacles.
“It really exposed 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 in-house.
To help address the issues, Lucid announced Wednesday that it has hired Stellantis veteran Steven David to serve as senior vice president of operations, taking responsibility for the company’s manufacturing, logistics and quality control efforts.
CFO Sherry House told CNBC that the company’s booking of 37,000 total does not include any reservations for its upcoming Gravity SUV or any of the vehicles ordered by the Saudi Arabian government.
Lucid said in April that the Saudi Arabian government had agreed to buy up to 100,000 of its vehicles over the next 10 years. The country’s sovereign wealth fund is a major investor in Lucid, holding approximately 62% of the company’s shares.
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 “through 2023,” House said.
This is a developing story. Please check back for updates.
