Lucid Motors cut production expectations for the second time in a year as the company deals with supply chain and logistics challenges.
As per Lucid, the company now has 37,000 reservations for its Air electric luxury sedan, a 7,000 rise since May.
However, Lucid only delivered 679 vehicles in the second quarter.
At the start of the year, Lucid expected to build around 20,000 vehicles.
However, as of February, the company readjusted their expectations to between 12,000 and 14,000 vehicles this year.
Now, the company is expecting to deliver between 6,000 and 7,000 vehicles.
CEO Peter Rawlinson said this about the new production goals:
Our revised production guidance reflects the extraordinary supply chain and logistics challenges we encountered. We’ve identified the primary bottlenecks, and we are taking appropriate measures – bringing our logistics operations in-house, adding key hires to the executive team, and restructuring our logistics and manufacturing organization.
Lucid has burned around $800 million in cash at the end of the second quarter, but the company has enough to fund operations well into 2023.
In addition to the production expectation cut, Lucid also announced a new senior executive to lead operations.
Steven David, a Stellantis veteran, will serve as the Senior Vice President of Operations.
David will be in charge of the company’s manufacturing, logistics and quality-control efforts in his role.
As a result of the production news, Lucid shares dropped around 12 per cent in after-hours trading.