Lucid (LCID) Q2 2022 earnings and production forecast

Lucid Motors CEO Peter Rawlinson poses at the Nasdaq MarketSite as Lucid Motors (Nasdaq: LCID) begins investing on the Nasdaq stock trade just after finishing its small business mixture with Churchill Capital Corp IV in New York Town, New York, July 26, 2021.

Andrew Kelly | Reuters

Electric auto maker Lucid Group again lower its generation targets Wednesday as provide chain and logistics troubles signify demand for the company’s EVs considerably outpaces its output.

The business claimed it now has in excess of 37,000 reservations for its Air electric luxurious sedan, up from much more than 30,000 in May well – but it delivered just 679 automobiles in the 2nd quarter. In February, it reported that it envisioned to develop in between 12,000 and 14,000 automobiles in 2022, down from an unique forecast of 20,000.

It slash its complete-year deliveries direction for a 2nd time, expressing that it now expects to supply just 6,000 to 7,000 automobiles in 2022, and declared a new senior government to direct functions.

Lucid’s shares fell about 12% in after-hrs trading adhering to the news.

The bulletins came as Lucid described its 2nd-quarter benefits. In this article are the key numbers:

  • Revenue: $97.3 million
  • Decline per share: 33 cents
  • Automobiles sent: 679

“Our revised manufacturing direction displays the remarkable supply chain and logistics troubles we encountered,” CEO Peter Rawlinson stated in a statement. “We have recognized the major bottlenecks, and we are having acceptable measures – bringing our logistics operations in-residence, introducing crucial hires to the government staff, and restructuring our logistics and producing corporation.”

Earlier this yr, Lucid cited source chain issues all-around semiconductor chips as properly as essential elements like glass and carpet as explanations for the reduction.

Rawlinson instructed CNBC in an interview that the system of doing work via the offer-chain challenges pressured the firm to confront one more set of bottlenecks.

“It seriously unveiled the upcoming level of problems, the immaturity of our logistics techniques,” Rawlinson explained, describing that Lucid is in the method of bringing delivery and other expert services in-household.

To aid handle the challenges, Lucid introduced Wednesday it is really hired Stellantis veteran Steven David to serve as its senior vice president of operations, having demand of the firm’s production, logistics and high-quality-manage initiatives.

CFO Sherry Residence advised CNBC that the firm’s reservation total of 37,000 does not include things like any reservations for its impending Gravity SUV or any of the motor vehicles purchased by the authorities of Saudi Arabia.

Lucid mentioned in April that Saudi Arabia’s govt experienced agreed to invest in up to 100,000 of its vehicles in excess of the following 10 decades. The country’s general public prosperity fund is a important investor in Lucid, holding roughly 62% of the firm’s shares.

Lucid experienced $4.6 billion in dollars and equivalents as of the end of the next quarter, down from $5.4 billion at the conclude of March but ample to fund functions “very well into 2023,” Household mentioned.

This is a building story. You should check back again for updates.