Lucid Motors slashes EV Production.
Lucid Motors slashes EV Production – Overview.
Following the publication of its second-quarter earnings, which included the output guidance, shares of Lucid dropped more than 12% in after-market trade.
From 12,000 to 14,000 vehicles to 6,000 and 7,000 cars for the year, Lucid reduced its manufacturing forecast.
Only 20,000 of the luxury Air sedans the business had initially planned to build in 2022 will be produced that year.
Lucid lowered that ambitious target to between 12,000 and 14,000 vehicles in February.
There is no demand issue with Lucid. According to the report, more than 37,000 reservations have been made for the company’s Air car, a 23 percent rise from a few months ago.
However, with only 679 automobiles delivered in the second quarter, it could not take advantage of that demand. Lucid built 1,405 vehicles in the year’s first half and had 1,039.
In a statement, Rawlinson added, “Our revised production guidance reflects the unprecedented supply chain and logistics problems we encountered.”
During the earnings call with analysts, Rawlinson made an effort to ease investors’ worries by stressing that the business has already made efforts to start resolving the situation’s main obstacles. For example, lucid is moving its logistical operations in-house, he added.
In his prepared remarks, Rawlinson stated, “I’m right here on the front line,” before queries from analysts. And here on the shop floor, I have been spending most of my time.
As the CEO, I think I must be present to address problems and assist in the onboarding of new executives.
Steven David, a seasoned Stellantis worker, has been appointed by Lucid as senior vice president of operations, covering supply chain, logistics, manufacturing, and quality.
David most recently oversaw Stellantis’ component operations and had thirty years of experience in manufacturing and operations.
The second quarter saw $97.3 million in revenue, according to Lucid.
The company, which went public last year, had its Q2 revenue increase from $174,000 in the same period the previous year and $57.6 million in the first quarter, but it was still much below analysts’ estimates.
According to the analysts surveyed by Yahoo Finance, the company would generate $145.5 million in revenue and lose 36 cents per share.
However, lucid reported a loss of 33 cents in earnings per share and an adjusted net loss of $414 million.
In the second quarter of 2021, Lucid reported an adjusted net loss of $218 million, almost twice as much as this figure.