Electric vehicle automaker Lucid Motors on Wednesday cut its annual production plan in half due to what CEO Peter Rawlinson called “emergency supply chain and logistics challenges.”
Shares of Lucid fell more than 12% in aftermarket trading following the release of its second-quarter earnings report, in which the company provided a manufacturing outlook.
Lucid reduced the production plan from 12,000 to 14,000 vehicles to 6,000 and 7,000 vehicles per year. That’s just a quarter of the 20,000 Air luxury sedans the company originally planned to produce in 2022. In February, Lucid adjusted this higher target. up to 12,000–14,000 vehicles.
Lucid doesn’t seem to have a problem with demand. The company said it had more than 37,000 orders for the Air sedan, up 23% from just a few months ago. It failed to capitalize on this demand, delivering just 679 vehicles in the second quarter.
“Our revised production plans reflect the extraordinary supply chain and logistics challenges we are facing,” Lucid CEO and CTO Peter Rawlinson said in a statement. “We have identified key bottlenecks and are taking appropriate action – taking over our logistics operations, recruiting key executives and restructuring our logistics and manufacturing organization. We continue to see strong demand for our vehicles with over 37,000 customers ordering and I remain confident that we will overcome these short term challenges.”
Lucid also announced that hired a longtime Stellantis employee Stephen David as Senior Vice President of Operations, a position that covers supply chain, logistics, manufacturing and quality. David, who has over 30 years of experience in manufacturing and operations, was most recently head of component manufacturing at Stellantis.
Lucid said it generated $97.3 million in revenue from shipments in the second quarter. While the company, which went public last year, did see revenue growth in the second quarter from $57.6 million in revenue in the first quarter and just $174,000 in the same period last year, that’s still well below analysts’ expectations.
Analysts polled by Yahoo Finance had expected the company to report $145.5 million in revenue and a 33-cent loss in earnings per share.
Lucid said it ended the quarter with $4.6 billion in cash, cash equivalents and investments expected to fund the company in 2023.
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