Lucid Motors CEO Peter Rawlinson at Nasdaq MarketSite as Lucid Motors (Nasdaq: LCID) begins trading on the Nasdaq stock exchange following the completion of a business partnership with Churchill Capital Corp IV in New York City , New York, July 26, 2021.
Andrew Kelly | Reuters
Electric vehicle manufacturer Lucid’s group Again cutting its production target on Wednesday as logistics and supply chain challenges mean demand for the company’s electric vehicles outstrips its output.
The company says it now has more than 37,000 reservations for its Air electric luxury sedan, up from more than 30,000 in May – but it delivered only 679 vehicles in the second quarter. In February, it said it expected to build from 12,000 to 14,000 vehicles by 2022down from the original forecast of 20,000.
It slashed its full-year delivery guidance for a 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 operation. .
Shares of Lucid fell about 12% in after-hours trading following the news.
Announcements are made when Lucid reports second quarter results. Here are the key numbers:
- Turnover: $97.3 million
- Loss per share: 33 cents
- Delivered vehicle: 679
“Our revised manufacturing guidance reflects the unusual logistics and supply chain challenges we face,” Chief Executive Officer Peter Rawlinson said in a statement. “We’ve identified key bottlenecks and we’re taking the appropriate measures – bringing our logistics operations in-house, adding key staff to our operations and re-engineering teams.” our logistics and production structure.”
Earlier this year, Lucid cited supply chain issues around semiconductor chips as well as basic components like glass and carpet as reasons for the cuts.
Rawlinson told CNBC in an interview that working through supply chain issues has forced the company to face a host of other bottlenecks.
“It really revealed the next level of challenge, the immaturity of our logistics system,” Rawlinson said, explaining that Lucid is in the process of bringing shipping and other services in-house.
To help resolve the issues, Lucid announced Wednesday that it has hired Stellantis Veteran Steven David serves as senior vice president of operations, responsible for the company’s manufacturing, logistics, and quality control efforts.
Chief financial officer Sherry House told CNBC that the company’s total of 37,000 reservations do not include any reservations for the upcoming Gravity SUV or any vehicle ordered by the Saudi government.
Lucid said in April that the Saudi government has agreed to buy up to 100,000 of his cars in the next 10 years. The country’s public wealth fund is a major investor in Lucid, holding about 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 “well through 2023,” House said. .
This is an evolving story. Please check back for updates.
