Lucid Group Inc lowered its production target for 2022 to a range of 12,000 to 14,000 cars, down from a previous goal of 20,000 for the year, citing “extraordinary” challenges with logistics and its supply chain.
The luxury electric vehicle start-up also came up short on its stated goal for deliveries last year. Lucid said on Monday it delivered 125 of its Air sedans in the final quarter of 2021 after originally planning to ship more than 500. And it delayed the launch of its second vehicle, the Gravity SUV, from 2023 to the first half of 2024.
Shares of the start-up fell more than 14% to $24.78 in late post-market trading.
Lucid has produced more than 400 Air sedans to date and has delivered more than 300 to customers. It also reported more than 25,000 reservations for the vehicle and booked $26.4m (roughly R405.4m) in fourth quarter revenue.
CEO Peter Rawlinson said on a conference call that Lucid is struggling more to secure supplies of parts such as window glass and interior carpeting than computer chips, shortages of which have tripped up many other automakers’ production plans. Lucid is navigating the procurement issues by offering to help key suppliers with logistical problems, switching contracts to new suppliers and bringing some processes in-house.
Rawlinson said earlier on Monday in a statement that he expects the supply chain issues to ease in the second half of 2022 and expressed confidence that Lucid is well poised to capitalise on demand for its vehicles.
Saudi Arabian Plant
A 2.85-million-square-foot expansion of its Casa Grande, Arizona, vehicle assembly facility is “on track,” according to the statement. Lucid also said it recently leased land in Saudi Arabia where it plans to build its second factory. Saudi Arabia’s sovereign wealth fund owns more than 60% of Lucid.
Lucid said on Monday it expects to start construction on the Saudi Arabian factory this year. Chairman Andrew Liveris previously told Bloomberg TV that he expects the second plant to open by 2026.
Lucid became one of two electric vehicle start-ups to make its first deliveries late last year, along with Amazon.com Inc-backed Rivian Automotive Inc. The Newark, California-based company is targeting a much higher-end buyer than Rivian, as the initial version of Lucid’s Air sedan costs $169,000 (roughly R2.6m).
The launch of the Air has not come without some issues, as just last week Lucid issued a recall over a potential safety defect. Lucid also shipped some of the first sedans without a promised driver-assistance feature, which the company promised to add after delivery via an over-the-air software update.
More stories like this are available on bloomberg.com
Lucid sinks after cutting production goal on commodity woes
Image: Bloomberg
Lucid Group Inc lowered its production target for 2022 to a range of 12,000 to 14,000 cars, down from a previous goal of 20,000 for the year, citing “extraordinary” challenges with logistics and its supply chain.
The luxury electric vehicle start-up also came up short on its stated goal for deliveries last year. Lucid said on Monday it delivered 125 of its Air sedans in the final quarter of 2021 after originally planning to ship more than 500. And it delayed the launch of its second vehicle, the Gravity SUV, from 2023 to the first half of 2024.
Shares of the start-up fell more than 14% to $24.78 in late post-market trading.
Lucid has produced more than 400 Air sedans to date and has delivered more than 300 to customers. It also reported more than 25,000 reservations for the vehicle and booked $26.4m (roughly R405.4m) in fourth quarter revenue.
CEO Peter Rawlinson said on a conference call that Lucid is struggling more to secure supplies of parts such as window glass and interior carpeting than computer chips, shortages of which have tripped up many other automakers’ production plans. Lucid is navigating the procurement issues by offering to help key suppliers with logistical problems, switching contracts to new suppliers and bringing some processes in-house.
Rawlinson said earlier on Monday in a statement that he expects the supply chain issues to ease in the second half of 2022 and expressed confidence that Lucid is well poised to capitalise on demand for its vehicles.
Saudi Arabian Plant
A 2.85-million-square-foot expansion of its Casa Grande, Arizona, vehicle assembly facility is “on track,” according to the statement. Lucid also said it recently leased land in Saudi Arabia where it plans to build its second factory. Saudi Arabia’s sovereign wealth fund owns more than 60% of Lucid.
Lucid said on Monday it expects to start construction on the Saudi Arabian factory this year. Chairman Andrew Liveris previously told Bloomberg TV that he expects the second plant to open by 2026.
Lucid became one of two electric vehicle start-ups to make its first deliveries late last year, along with Amazon.com Inc-backed Rivian Automotive Inc. The Newark, California-based company is targeting a much higher-end buyer than Rivian, as the initial version of Lucid’s Air sedan costs $169,000 (roughly R2.6m).
The launch of the Air has not come without some issues, as just last week Lucid issued a recall over a potential safety defect. Lucid also shipped some of the first sedans without a promised driver-assistance feature, which the company promised to add after delivery via an over-the-air software update.
More stories like this are available on bloomberg.com
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