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Lucid shares plunge as it cuts production target in half

The corporate mentioned it’s coping with the intense provide chain issues which have disrupted different automakers’ manufacturing as nicely. However its provide chain points brought about it to completely shut manufacturing at occasions through the quarter, in addition to reduce its manufacturing goal to six,000 to 7,000 autos this 12 months, down from its beforehand acknowledged purpose of 12,000 to 14,000 automobile.

The corporate mentioned it was in a position to ship 1,400 vehicles through the first half of this 12 months. It mentioned that through the simply accomplished quarter it held again shipments of a “important quantity” of vehicles “to make sure that these vehicles met the best customary of high quality.”

“High quality should take a precedence over quantity as a luxurious model,” mentioned Lucid CEO Peter Rawlinson in a name with traders Wednesday afternoon.

Whereas different automakers have certainly briefly shut down manufacturing traces attributable to chip shortages, they’ve usually stored factories buzzing by eradicating sure options like heated seats.

General Lucid reported an adjusted internet lack of $555.3 million, which was higher than the forecast of a lack of $619 million from analysts surveyed by Refinitiv, and higher than its $604.6 million loss within the first quarter. Income was $97.3 million. It mentioned that the variety of orders it has for its vehicles has risen to 37,000, from the 30,000 backlog in orders on the finish of final 12 months.

Lucid’s vehicles have gotten some high awards, with the Lucid Air profitable the MotorTrend Car of the Year award final 12 months. The Dream version of that automobile can go an industry-best 520 miles on a single charge.
However Lucid (LCDX) shares had already declined 46% up to now this 12 months by way of Wednesday’s shut, with Thursday’s drop solely including to the decline.

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