Lucid Motors Will Produce Fewer Cars Than Expected

Lucid Motors, a fledgling maker of electrical vehicles, on Monday considerably scaled again its manufacturing targets for the 12 months, citing a scarcity of semiconductors and different provide chain issues.

The corporate possible disclosed the brand new targets as a part of its 2021 earnings report and can most disappoint traders who had seen the corporate as a critical challenger to Tesla. Lucid shares fell in after-hours buying and selling.

Lucid mentioned it anticipated to supply 12,000 to 14,000 automobiles this 12 months at its manufacturing unit in Arizona, down from the 20,000 that its chief government, Peter Rawlinson, a former Tesla engineer, set as a aim final November.

Lucid mentioned that 25,000 prospects had positioned reservations for its vehicles, which might translate into $2.4 billion in gross sales. To this point the corporate has delivered about 300 automobiles.

The corporate reported a lack of $486 million for the three months via December, in contrast with a lack of $200 million a 12 months earlier. Gross sales have been $26.4 million, in contrast with $3.6 million within the fourth quarter of 2020. Lucid mentioned it had $6.2 billion in money on the finish of 2021, and likewise introduced plans to construct a second manufacturing unit, in Saudi Arabia. The oil kingdom’s sovereign wealth fund is without doubt one of the largest traders in Lucid.

“We stay assured in our capability to seize the super alternatives forward given our know-how management and powerful demand for our vehicles,” Mr. Rawlinson mentioned in an announcement.

Lucid’s first automotive, the $169,000 Lucid Air Dream Version sedan, gained reward for its workmanship and the flexibility to journey a file 520 miles on a single cost. MotorTrend journal declared it the automotive of the 12 months. The corporate’s inventory surged final fall as inventory market traders grew to become more and more enthusiastic concerning the prospects for electrical vehicles.

However the shares have slumped since peaking in November as traders waited to see if Lucid may make automobiles in giant numbers and develop into a critical challenger to Tesla, which almost doubled its international gross sales in 2021.

The leap from prototype to mass manufacturing has been tough for different start-ups, too. Shares of Rivian, a maker of electrical pickup vans that additionally obtained rave critiques, have plummeted after the corporate failed to fulfill a modest aim of manufacturing 1,200 automobiles for particular person patrons in 2021.

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