Lucid Motors slashes EV production targets again as supply chain problems persist

There are extraordinary supply chain and logistics challenges that led to the halving of the annual production guidance.

After the release of its second quarter earnings, shares of Lucid fell more than 12% in after market trading.

For the year, the production guidance was lowered from 12,000 to 7,000. The company originally planned to make 20,000 Air sedans. The goal was lowered to 12,000 to 14,000 vehicles.

It doesn't seem to have a demand problem. More than 37,000 reservations have been made for the Air sedan, a 23% increase from a few months ago. In the second quarter, it delivered just 679 vehicles. In the first half of the year, the company produced and delivered more than one thousand vehicles.

The revised production guidance reflects the extraordinary supply chain and logistical challenges we encountered.

During the earnings call with analysts, Rawlinson tried to assure investors that the company has taken steps to remedy the situation and has identified the primary problems. He said that the company is bringing its operations in- house.

Rawlinson said in his prepared remarks that he was on the front line. I have spent most of my time here on the shop floor. It is my responsibility as the CEO to resolve issues and help the new executives.

Steven David, an employee of Stellantis, has been hired as senior vice president of operations by Lucid. David has 30 years of experience in manufacturing and operations.

In the second quarter, the company had revenue of $97.3 million. The company, which went public last year, saw its revenue rise from $58.6 million in the first quarter to $58.6 million in the second quarter, but it was still below analysts' expectations.

Revenue was expected to be $145 million and an earnings per share loss of 37 cents. The company reported an earnings per share loss of 33 cents. In the second quarter of the year, Lucid reported a net loss of $218 million.

The company said it had $4.7 billion in cash, cash equivalents, and investments at the end of the quarter.

There are supply chain issues that cause production delays for other manufacturers. The company saw a decline in profits over the course of the year. Ford was able to beat Wall Street expectations on revenue and earnings, but it did say that supply chain constraints caused losses in its China business. Sales grew in North America and Europe.