EV automaker Lucid Motors on Wednesday slashed its annual manufacturing steering in half because of 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, wherein it offered the manufacturing steering.
Lucid lowered its manufacturing steering from 12,000 to 14,000 autos to six,000 and seven,000 autos for the yr. 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 aim all the way down to 12,000 to 14,000 autos.
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% enhance from just some months in the past. It has did not capitalize on that demand, delivering simply 679 autos within the second quarter.
“Our revised manufacturing steering displays the extraordinary provide chain and logistics challenges we encountered,” mentioned Lucid CEO and CTO Peter Rawlinson mentioned in a press release. “We’ve recognized the first bottlenecks, and we’re taking acceptable measures – bringing our logistics operations in-house, including key hires to the chief crew, and restructuring our logistics and manufacturing group. We proceed to see sturdy demand for our autos, with over 37,000 buyer reservations, and I stay assured that we will overcome these near-term challenges.”
Lucid reported it generated $97.3 million in income on deliveries within the second quarter. Whereas the corporate, which went public final yr, 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 mentioned it ended the quarter with $4.6 billion money, money equivalents, and investments, which it mentioned is anticipated to fund the corporate properly into 2023.
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