Lucid Motors is backtracking on its production goals for 2022 once again as it announced that it would only be able to make 7,000 EVs. The luxury electric car maker had initially boasted of 20,000 vehicles coming out of its factories this year.
In February 2022, Lucid likely saw that its production rate could not match its promise and backtracked. It claimed it would only be able to roll out 14,000 vehicles, and now, it has slashed even that number by half.
The company had been one of the few that industry analysts believed would give Tesla a run for its money in the EV industry. However, it has been unable to surmount the supply chain problems facing the entire tech industry.
“Our revised production guidance reflects the extraordinary supply chain and logistics challenges we encountered,” Peter Rawlinson, the company’s CEO and CTO, said. “We’ve identified the primary bottlenecks, and we are taking appropriate measures – bringing our logistics operations in-house, adding key hires to the executive team, and restructuring our logistics and manufacturing organization. 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.”
Towards the end of 2021, Lucid had been confident about how this year would turn out for it. Then, inflation on raw materials set in, with the company claiming a 10 per cent rise in the cost of making one model.
The delays are affecting the company’s earnings, and it reported a $220 million loss in the second quarter of 2022 and made only $97.3 million in revenue. During that period, it was only able to ship 679 cars.
Lucid Motors is facing a race against time as it already has more than 37,000 reservations for its sedan model, which could see it earn $3.5 billion if it supplies the cars. Although, a potential price increase could affect which percentage of customers follow through eventually.
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