While attending the South by Southwest festival (SXSW) in Texas, Lucid Group CEO Peter Rawlinson revealed the main reason why they cut their 2022 production target by as much as 40%.
Rawlinson also talked about the pricing of their electric vehicles, and the need for future price increases.
In their Q4 2021 earnings letter released last month, the automaker said they are now aiming to produce only 12,000 to 14,000 Air sedans this year, down from their original target of 20,000.
In that letter, Rawlinson cited “extraordinary supply chain and logistics challenges” as a reason behind the revised estimate.
In an impromptu interview with Reuters today, Rawlinson said they are not facing a shortage of semiconductors, but rather a shortage of windshields, carpeting, and some exterior trim parts.
“It’s about a handful suppliers that are gating our volume. I’m super frustrated because we’re not gated by silicon chips, we’re not gated by our ability to make electric motors,” Rawlinson said.
It is not as simple as switching to a different supplier, because according to Rawlinson that would compromise the quality of their EVs.
Rawlinson also commented on the inflationary pressures being felt by all automakers. The CEO said with the rise in nickel prices, future price increases are inevitable, but that they would honour prices for existing reservation holders, of which there are more than 25,000.
“I think it would be absolutely foolish of me to say we’re never going to raise our prices,” Rawlinson said.
Since starting production in late September last year, Lucid has produced more than 400 cars and delivered over 300 of those to customers.
Their second EV, the Lucid Gravity SUV, has been delayed until at least the first half of 2024.
Lucid also recently announced plans to build their second manufacturing facility in Saudi Arabia, with construction beginning this year.