Lucid Motors CEO Peter Rawlinson poses on the Nasdaq MarketSite as Lucid Motors (Nasdaq: LCID) begins buying and selling on the Nasdaq inventory alternate after finishing its enterprise mixture with Churchill Capital Corp IV in New York Metropolis, New York, July 26, 2021.
Andrew Kelly | Reuters
Electrical automobile maker Lucid Group once more reduce its manufacturing targets Wednesday as provide chain and logistics challenges imply demand for the corporate’s EVs far outpaces its output.
The corporate mentioned it now has over 37,000 reservations for its Air electrical luxurious sedan, up from more than 30,000 in May – but it surely delivered simply 679 automobiles within the second quarter. In February, it mentioned that it anticipated to construct between 12,000 and 14,000 vehicles in 2022, down from an authentic forecast of 20,000.
It reduce its full-year deliveries steering for a second time, saying that it now expects to ship simply 6,000 to 7,000 autos in 2022, and introduced a brand new senior govt to guide operations.
Lucid’s shares fell about 12% in after-hours buying and selling following the information.
The bulletins got here as Lucid reported its second-quarter results. Listed here are the important thing numbers:
- Income: $97.3 million
- Loss per share: 33 cents
- Automobiles delivered: 679
“Our revised manufacturing steering displays the extraordinary provide chain and logistics challenges we encountered,” CEO Peter Rawlinson mentioned in a press release. “We have recognized the first bottlenecks, and we’re taking applicable measures – bringing our logistics operations in-house, including key hires to the manager group, and restructuring our logistics and manufacturing group.”
Earlier this 12 months, Lucid cited provide chain points round semiconductor chips in addition to primary elements like glass and carpet as causes for the discount.
Rawlinson informed CNBC in an interview that the method of working by way of the supply-chain points compelled the corporate to confront one other set of bottlenecks.
“It actually unveiled the subsequent degree of challenges, the immaturity of our logistics programs,” Rawlinson mentioned, explaining that Lucid is within the technique of bringing delivery and different companies in-house.
To assist handle the problems, Lucid introduced Wednesday it is employed Stellantis veteran Steven David to function its senior vice chairman of operations, taking cost of the corporate’s manufacturing, logistics and quality-control efforts.
CFO Sherry Home informed CNBC that the corporate’s reservation whole of 37,000 doesn’t embrace any reservations for its upcoming Gravity SUV or any of the autos ordered by the federal government of Saudi Arabia.
Lucid mentioned in April that Saudi Arabia’s authorities had agreed to buy up to 100,000 of its vehicles over the subsequent 10 years. The nation’s public wealth fund is a serious investor in Lucid, holding roughly 62% of the corporate’s shares.
Lucid had $4.6 billion in money and equivalents as of the top of the second quarter, down from $5.4 billion on the finish of March however sufficient to fund operations “effectively into 2023,” Home mentioned.
This can be a growing story. Please examine again for updates.