A Lucid Motors factory in Arizona © Bloomberg
Tesla rival Lucid Motors cut its 2022 production target in half on Wednesday, citing “extraordinary supply chain” challenges as it tries to ramp up production and meet “strong demand.”
The California-based group, backed by Saudi Arabia’s sovereign wealth fund, said 2022 production is now estimated at 6,000 to 7,000 cars, down from an earlier projection of 12,000 to 14,000, which was a cut compared to the forecast at the beginning of the year of 20,000. vehicles
Shares in the electric carmaker have already fallen 50 percent this year, reflecting numerous challenges ramping up production of its Lucid Air, a luxury electric vehicle that starts at $89,000 and was named Car of the Year in MotorTrend for 2022. Shares fell 12 more. percent after hours on Wednesday.
“We have identified the major bottlenecks and are taking appropriate action, bringing our logistics operations in-house, making key hires to the executive team and restructuring our logistics and manufacturing organization,” said CEO Peter Rawlinson.
“We continue to see strong demand for our vehicles, with more than 37,000 customer bookings, and I am confident that we will overcome these challenges in the short term.”
The 37,000 bookings add up to $3.5 billion in potential sales, the company said, but Lucid posted just $97.3 million in revenue in the June quarter, well below estimates of $147 million, as it only deliver 679 cars in the three-month period.
Lucid CFO Sherry House said the company has $4.6 billion in cash, “which we believe is sufficient to fund the company well into 2023.”
Despite the stock market’s recent woes, Lucid had a market value of $34 billion at the time of earnings Tuesday, compared with $54 billion for GM and $60.4 billion for Ford, companies that sell regularly million vehicles per year.