Lucid Group (NASDAQ: LCID) cut its 2022 production outlook to between 6,000 and 7,000 vehicles after citing “extraordinary supply chain and logistics challenges.”
Lucid initially projected its 2022 production goal as 20,000 units last year. This was quickly revised in February to between 12,000 and 14,000 vehicles in February. As automakers across the world struggled with supply issues and parts shortages, startups began to reconsider their goals for the year. Rivian also slashed production goals considerably in early 2022, citing supply issues and other challenges as the reasoning.
Lucid’s situation is no different. Struggling with cash flow and lost nearly $5 billion in 2021, and took another $220 million loss in Q2, it disclosed in its Shareholder Deck. Only 679 Lucid Air vehicles made their way to customers in Q2.
When asked about a weekly production rate, Rawlinson said it would be best not to start “cherry-picking specific weekly production rates.” Meanwhile, CFO Sherry House stated that customers and investors should see deliveries begin to pick up substantially through the next few quarters.
“Our revised production guidance reflects the extraordinary supply chain and logistics challenges we encountered,” Peter Rawlinson, CEO and CTO, said. “We’ve identified the primary bottlenecks, and we are taking appropriate measures…We continue to see strong demand for our vehicles, with over 37,000 customer reservations, and I remain confident that we shall overcome these near-term challenges with a relentless tenacity and a steely determination.”
Rawlinson also stated it has brought logistics operations in-house and is working to strengthen its executive team.
Lucid shares were trading at $18.74, down 8.9 percent at 10:06 a.m. in New York.
Disclosure: Joey Klender is not an LCID shareholder.
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