Things are going from bad to worse for EV maker Lucid. The company again cut production targets this week. Supply chain and logical challenges mean the electric vehicle company has a demand that its supply simply cannot keep up with, according to The Wall Street Journal.
Lucid delivered just 679 cars in the second quarter of 2022. That number pales in comparison to the now-over 37,000 reservations it currently has (up from 30,000 in May). That number also doesn’t include reservations for its upcoming Gravity SUV or any of the vehicles ordered by the Saudi Arabian government.
Look at the bright side, the company only built 360 vehicles in the first quarter. That’s an improvement!
Originally the company planned to build 20,000 vehicles in 2022. Then, that number was slashed drastically in February when Lucid revised it to between 12,000 and 14,000 vehicles.
Now the EV manufacturer has cut its production guidance in half of that already downgraded goal. Lucid now says it expects to deliver just 6,000 to 7,000 vehicles this year.
“This quarter has proven to be a very challenging period, and whilst we have experienced supply chain and logistics challenges along with the entire industry, the limitations of our logistics systems have compounded the challenge,” Chief Executive Peter Rawlinson said.
He added supply-chain issues and infrastructure upgrades contributed to a two-and-a-half week period where the company had zero daily production at its Arizona factory. However, he did say the company had identified internal bottlenecks and was working to get past them.
According to CNBC, earlier this year Lucid cited major supply chain issues surrounding semiconductor chips as well as other components like glass and carpet as a reason for the major reduction.
The Journal reports shares of Lucid had fallen by double digits since the news was announced. That’s after you consider the fact that Lucid’s stock price had already fallen 46 percent in 2022.
All in all, Lucid narrowed losses to $220 million, which is down $41 million from a year earlier, despite rising expenses. It says it has $4.6 billion of cash on hand. That’s a drop from the $5.4 billion it had at the end of march. Regardless, Lucis said that’s enough cash to allow the company to operate into 2023.
Second quarter revenue grew to $97 million in the quarter. It may not sound like much, but it’s a helluva lot more than the $174,000 it made a year earlier.
To help with some of these issues, Lucid announced that it had hired Stellantis mainstay Steven David to serve as senior vice president of operations. He’ll be in charge of the company’s manufacturing, logistics and quality control efforts.
Lucid has a long road ahead of it. We’ll be following the story every step of the way.