Electric vehicle maker Lucid Motors cut its annual production guidance in half on Wednesday due to what CEO and CTO Peter Rawlinson described as “extraordinary supply chain and logistics challenges.”
Lucid’s shares fell more than 12% in after-market trading after announcing its second-quarter earnings, in which it provided production guidance.
Lucid has reduced its production guidance from 12,000 to 14,000 vehicles to 6,000 and 7,000 vehicles for this year. That’s just a quarter of the 20,000 luxury aerodynamic sedans the company initially planned to produce in 2022. In February, Lucid revised that higher target to 12,000 to 14,000 vehicles.
Lucid doesn’t seem to have a problem with ordering. The company reported that it had more than 37,000 reservations for its sedan, up 23% from the past few months. It failed to capitalize on that demand, delivering only 679 vehicles in the second quarter. In the first half of the year, Lucid produced 1,405 vehicles and delivered 1,039 of them.
“Our revised production guidelines reflect the extraordinary supply chain and logistical challenges we have faced,” Rawlinson said in a statement.
Rawlinson tried to allay investor concerns during an earnings call with analysts, confirming that the company had set The primary jams And the You have previously taken steps to me Started to me treatment The Situation. He added that Lucid is moving its logistics operations inland.
“I truly over here on me The In front of me Rawlinson said as part of his prepared remarks before the analysts’ questions. “And the I have also spending The Wide The majority of From Mine time over here, truly over here on me The a store floor. I Believe it’s a Mine the responsibility as such The Executive Director to me is being over here Solution Issues And the help to me on board The the new managers.”
Lucid also announced that it has appointed longtime Stellantis employee Stephen David as Senior Vice President of Operations, a position that includes supply chain, logistics, manufacturing, and quality. David, who has three decades of manufacturing and operations experience, recently headed up the Stellantis components operations.
Lucid reported that it generated $97.3 million in revenue in the second quarter. While the company, which went public last year, saw its second-quarter revenue increase from $57.6 million in revenue in the first quarter and just $174,000 in the same period last year, it still fell well short of analyst expectations.
Analysts surveyed by Yahoo Finance expected revenue of $145.5 million and a loss of earnings per share of 36 cents. Lucid reported a loss per share of 33 cents and an adjusted net loss of $414 million. That’s nearly double the $218 million adjusted net loss that Lucid reported in the second quarter of 2021.
Lucid said it closed the quarter with $4.6 billion in cash, cash equivalents and investments, which it said is expected to fund the company well through 2023.
Lucid is hardly the only automaker with supply chain issues that cause production delays and, as a result, wipe out sales. General Motors saw a 40% drop in profits year-over-year. And while Ford managed to dodge that kind of outcome and actually beat Wall Street expectations for revenue and profits, the company said supply chain constraints were causing losses to its China business. These losses were offset by sales growth in North America and Europe.