EV automaker Lucid Motors on Wednesday halved its annual production guidance due to what CEO Peter Rawlinson described as “extraordinary supply chain and logistics challenges.”
Shares of Lucid fell more than 12% in after-market trading after the release of its second-quarter earnings in which it provided production guidance.
Lucid lowered its production guidance for the year from 12,000 to 14,000 vehicles to 6,000 and 7,000 vehicles. This is a quarter of the 20,000 luxury air sedans that the company had initially planned to produce n 2022. In February, Lucid adjusted that higher target from 12,000 to 14,000 vehicles.
Looks like Lucid doesn’t have a demand problem. The company reported that it has over 37,000 reservations for its air sedan, up 23% from a few months ago. It failed to capitalize on that demand, delivering just 679 vehicles in the second quarter.
“Our revised production guidance addresses exceptional supply chain and logistics challenges,” Lucid CEO and CTO Peter Rawlinson said in a statement. “We have identified the primary constraints, and we are taking appropriate measures – bringing our logistics operations in-house, adding key staff to the executive team, and restructuring our logistics and manufacturing organization. We have over 37,000 customer reservations. We continue to see strong demand for our vehicles with the US, and I am confident that we will overcome these near-term challenges.
Lucid also announced that he has Stellantis Employee Hired Long Time Steven David as Senior Vice President of Operations, a position that includes supply chain, logistics, manufacturing and quality. David, who has over three decades of experience in manufacturing and operations, most recently led Stelantis’ component operations.
Lucid reported that it generated $97.3 million in revenue on delivery in the second quarter. While the company, which went public last year, saw its Q2 revenue pop from $57.6 million in revenue in the first quarter and just $174,000 in the same year period, it was still well below analysts’ expectations.
Analysts polled by Yahoo Finance expected revenue of $145.5 million and a loss of 33 cents in earnings per share.
Lucid said it ended the quarter with $4.6 billion in cash, cash equivalents and investments, which it said expects the company to be funded well into 2023.
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