Lucid slashes 2022 vehicle production forecast

Lucid Air

Courtesy: Lucid Motors

Lucid Group is reducing its car generation forecast for this year by as considerably as 40%, sending shares of the electric powered motor vehicle begin-up tumbling 14% throughout immediately after several hours buying and selling.

The organization on Monday cited provide chain constraints and elements quality challenges for slashing generation to between 12,000 and 14,000 cars, down from original anticipations of 20,000.

“This demonstrates the extraordinary supply chain and logistics worries we have encountered and our unrelenting focus on providing the highest-high quality merchandise,” Lucid CEO Peter Rawlinson said in a assertion. “We continue being confident in our ability to seize the tremendous opportunities in advance specified our engineering leadership and potent need for our cars.”

Rawlinson, on a phone with traders Monday, stated the challenges are additional to do with commodity areas these as glass and carpet fairly than an ongoing world scarcity of semiconductor chips. He mentioned the problems are with a handful of its roughly 250 suppliers.

The company’s initial electric car is a $169,000 sedan termed the Lucid Air Desire Version. Given that commencing retail manufacturing in the drop, the organization has created additional than 400 of the vehicles at a new factory in Arizona. It has sent much more than 300 of people units to clients, like 125 models through the fourth quarter, the corporation mentioned Monday.

Rawlinson mentioned Lucid also will delay its 2nd vehicle, an electrical SUV referred to as Gravity, to the 1st half of 2024. It was at first anticipated in 2023. He said the hold off is to refine the products and give much more time to impose very best procedures from launching the Air.

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Lucid declared the manufacturing forecast and sales as component of reporting its fourth-quarter final results. The automaker claimed a reduction of $1 billion all through the fourth quarter on income of $26.4 million. It misplaced $4.8 billion in 2021, the company documented.

Shares of Lucid, which went community in July by a SPAC offer, closed Monday at $28.98 a share, up by 10%. The company’s current market cap is $47.7 billion.

Lucid explained buyer reservations now exceed 25,000 models, reflecting potential revenue of additional than $2.4 billion. That’s up from 17,000 models in November.

Lucid also confirmed ideas to develop its initial worldwide assembly plant in Saudi Arabia. Rawlinson reported the plant is envisioned to commence production in 2025. Optimum ability is slated to be 150,000 models, he reported.