Lucid shares plunge as it halves production target

The company said it was dealing with serious supply chain issues that have also disrupted production at other automakers. But its supply chain issues caused it to halt production altogether at times during the quarter, as well as cut its production target to 6,000-7,000 vehicles this year, down from its previously stated target of 12,000 to 14,000 vehicles.

The company said it was able to ship 1,400 cars in the first half of this year. He said that in the quarter just ended, he held back shipments of a « significant number » of cars « to ensure these cars meet the highest quality standards. »

“Quality has to come before volume as a luxury brand,” Lucid CEO Peter Rawlinson said on an investor call Wednesday afternoon.

While other automakers have indeed temporarily shuttered production lines due to chip shortages, they have often kept factories running by removing features like heated seats.

Overall, Lucid posted an adjusted net loss of $555.3 million, which was better than analysts polled by Refinitiv for a loss of $619 million, and better than its loss of 604 million. $6 million in the first quarter. Revenue was $97.3 million. He said the number of orders he has for his cars has risen to 37,000 from 30,000 pending orders at the end of last year.

Lucid’s cars have won prestigious awards, with the Lucid Air winning MotorTrend’s Car of the Year award last year. The Dream Edition of this car can go an industry-best 520 miles on a single charge.
But Lucid (LCDX) shares had already fallen 46% so far this year through Wednesday’s close, with Thursday’s drop only adding to the downside.

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