Lucid Motors CEO Peter Rawlinson poses at the Nasdaq MarketSite as Lucid Motors (Nasdaq: LCID) begins trading on the Nasdaq Stock Exchange after completing a business combination with Churchill Capital Corp IV in New York, NY on July 26, 2021.
Andrew Kelly | Reuters
Electric vehicle maker Lucid Group slashed its production targets again on Wednesday as supply chain and logistics issues mean demand for the company’s electric vehicles far exceeds its output.
The company said it currently has more than 37,000 orders for the Air electric luxury sedan, up from more than 30,000 in May, but delivered just 679 vehicles in the second quarter. The company said in February that it expects to build 12,000 to 14,000 vehicles in 2022, up from an initial forecast of 20,000.
The company cut its full-year delivery forecast for the second time, saying it now expects to deliver 6,000 to 7,000 vehicles in 2022 and announced the appointment of a new senior executive to lead operations.
Shares of Lucid fell about 12% after hours after the news.
The announcements came when Lucid announced her second quarter results. Here are the key numbers:
- Income: $97.3 million
- Loss per share: 33 cents
- Cars delivered: 679
“Our revised production plans reflect the extraordinary supply chain and logistics challenges we are facing,” said CEO Peter Rawlinson. “We have identified major bottlenecks and are taking appropriate action – we are taking over our logistics operations, recruiting key executives and restructuring our logistics and manufacturing organization.”
Earlier this year, Lucid cited semiconductor chip supply chain issues, as well as core components such as glass and carpeting, as reasons for the cuts.
Rawlinson said in an interview with CNBC that the process of solving supply chain problems has forced the company to face another set of bottlenecks.
“It really exposed a new level of challenge, the immaturity of our logistics systems,” Rawlinson said, explaining that Lucid is in the process of providing shipping and other services in-house.
To address these concerns, Lucid announced Wednesday that it has hired Stellantis veteran Stephen David as senior vice president of operations in charge of manufacturing, logistics and quality control.
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 vehicles ordered by the Saudi Arabian 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 public welfare fund is a major investor in Lucid, which owns approximately 62% of the company’s shares.
As of the end of the second quarter, Lucid had $4.6 billion in cash and cash equivalents, up from $5.4 billion at the end of March, but enough to fund operations “through 2023,” House said.
This is an evolving story. Please stay tuned for updates.