Lucid Motors will produce fewer cars than expected
Lucid Motors, a young electric car maker, drastically cut production targets for the year on Monday, citing a shortage of semiconductors and other supply chain issues.
The company disclosed the new targets as part of its 2021 earnings report and will most likely disappoint investors who saw the company as a serious challenger for Tesla. Lucid shares fell in after-hours trading.
Lucid said it plans to produce 12,000 to 14,000 vehicles this year at its Arizona plant, up from the 20,000 its chief executive, Peter Rawlinson, a former Tesla engineer, set as a target last November. .
Lucid said 25,000 customers made reservations for its cars, which would translate to sales of $2.4 billion. So far, the company has delivered around 300 vehicles.
The company reported a loss of $486 million for the three months to December, compared with a loss of $200 million a year earlier. Sales were $26.4 million, compared to $3.6 million in the fourth quarter of 2020. Lucid said it had $6.2 billion in cash at the end of 2021 and also announced its intention to build a second factory in Saudi Arabia. The oil kingdom’s sovereign wealth fund is one of Lucid’s biggest investors.
“We remain confident in our ability to seize the exciting opportunities ahead given our technology leadership and strong demand for our cars,” Rawlinson said in a statement.
Lucid’s first car, the $169,000 Lucid Air Dream Edition sedan, was praised for its build quality and ability to travel a record 520 miles on a single charge. MotorTrend magazine named it Car of the Year. Shares of the company surged last fall as stock investors became increasingly enthusiastic about the prospects for electric cars.
But shares have fallen since peaking in November as investors waited to see whether Lucid could make vehicles in large numbers and become a serious challenger for Tesla, which nearly doubled its global sales in 2021.
The transition from prototype to mass production has also been difficult for other start-ups. Shares of Rivian, a maker of electric pickup trucks that also received rave reviews, fell after the company failed to meet a modest goal of producing 1,200 vehicles for individual buyers in 2021.