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Lucid Motors Has Drastically Reduced Its Production Target, Again
Caitlin O'Hara / reuters
August 4th, 2022 | 17:32 PM | 239 views
The company says it only will deliver a fraction of the 20,000 cars it originally promised for 2022.
Luxury EV startup Lucid Motors changed its yearly production target again, lowering it to an expected output of between 6,000 and 7,000 vehicles, the company announced today. That’s only a fraction of the 20,000 cars that Lucid initially promised to deliver in 2022. The Tesla competitor has only produced 1,405 vehicles so far this year, giving it a mere four months to build thousands of new cars.
Supply chain woes and a shortage of parts and raw materials are to blame for the slow output, the company claims. In a call with investors, the California-based company’s CEO Peter Rawlinson said it is planning a number of structural changes to amp up production. "Our revised production guidance reflects the extraordinary supply chain and logistics challenges we encountered," said Rawlinson. "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."
On top of ongoing production struggles, this May the company was forced to recall all of its 2022 Air EVs due to wiring issues — a total of over 1,000 cars. Such challenges haven't appeared to impact demand for the luxury vehicles. So far, there have been 37,000 reservations for Lucid Motor’s all-electric sedan, the Lucid Air, the company disclosed in the call. On top of that, Lucid plans to sell over 100,000 cars to the government of Saudi Arabia — which poured over $1 billion into the company and owns a 62 percent stake.
courtesy of ENGADGET
by Amrita Khalid
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