Lucid is still facing its production issues. However, things appear to be improving as the EV startup has reportedly been able to increase production to between 40 and 50 cars per day. The increased production came after Lucid implemented sweeping changes in its logistic operations.
The changes also involved the management, heeding the warning by rival Tesla CEO Elon Musk, who warned the company could go bankrupt except it made drastic changes.
Lucid started the year on an optimistic note, with projected production at 20,000 units. However, the company faced reality and cut its target to between 12,000 and 14,000 units. This also proved impossible, and Lucid reduced its guidance to between 6,000 and 7,000.
To achieve the current production run, Lucid moved a significant portion of its logistics in-house. As a result, at least six executives parted ways with the company over the summer.
Following those changes the company is expected to ramp up to between 50 and 60 units per day. It might not sound like much but it is a significant increase from the 5 to 15 cars per day they were producing prior, and should gives Lucid a fair chance of meeting its revised target of 7,000 cars per year.
The production targets above are well below Lucid’s 34,000 annual capacity of its Casa Grande plant. The company is adding another manufacturing plant that will produce the Gravity SUV in 2024.
The new plant will enable Lucid to make 90,000 vehicles per year. However, the EV maker has been granted about $3 billion by the Saudi Arabian government to establish a 150,000-unit-per-year plant in the kingdom. Saudi Arabia will also purchase 100,000 EVs in the next ten years.
