EV automaker Lucid Motors on Wednesday slashed its annual manufacturing steerage in half resulting from what CEO Peter Rawlinson described as “extraordinary provide chain and logistics challenges.”
Shares of Lucid fell greater than 12% in after-market buying and selling following the discharge of its second-quarter earnings, by which it supplied the manufacturing steerage.
Lucid lowered its manufacturing steerage from 12,000 to 14,000 automobiles to six,000 and seven,000 automobiles for the 12 months. That’s a simply quarter of the 20,000 luxurious Air sedans the corporate initially deliberate to supply n 2022. In February, Lucid adjusted that loftier purpose right down to 12,000 to 14,000 automobiles.
Lucid doesn’t seem to have a requirement downside. The corporate reported it has greater than 37,000 reservations for its Air sedan, a 23% improve from only a few months in the past. It has didn’t capitalize on that demand, delivering simply 679 automobiles within the second quarter.
“Our revised manufacturing steerage displays the extraordinary provide chain and logistics challenges we encountered,” stated Lucid CEO and CTO Peter Rawlinson stated in a press release. “We’ve recognized the first bottlenecks, and we’re taking applicable measures – bringing our logistics operations in-house, including key hires to the manager group, and restructuring our logistics and manufacturing group. We proceed to see sturdy demand for our automobiles, with over 37,000 buyer reservations, and I stay assured that we will overcome these near-term challenges.”
Lucid additionally introduced that it has employed longtime Stellantis worker Steven David as senior vp of operations, a place that encompasses provide chain, logistics, manufacturing, and high quality. David, who has three many years of expertise in manufacturing and operations, most not too long ago headed up Stellantis’ part operations.
Lucid reported it generated $97.3 million in income on deliveries within the second quarter. Whereas the corporate, which went public final 12 months, did see its Q2 income pop from $57.6 million in income within the first quarter and simply $174,000 within the same-year in the past interval, it was nonetheless far under analysts expectations.
Analysts surveyed by Yahoo Finance anticipated income of $145.5 million and an earnings per share lack of 33 cents.
Lucid stated it ended the quarter with $4.6 billion money, money equivalents, and investments, which it stated is predicted to fund the corporate effectively into 2023.
Growing story. Test for updates.