Lucid shares fall as production plan is halved

The company said it was dealing with severe supply chain issues that have also disrupted other automakers’ production. But supply chain issues have caused it to shut down production entirely during the quarter from time to time, as well as lower its production target to 6,000 to 7,000 vehicles this year from its previously stated target of 12,000 to 14,000 vehicles.

The company said it was able to ship 1,400 vehicles in the first half of this year. It said deliveries of a “significant number” of vehicles were delayed during the quarter just ended “to ensure that these vehicles meet the highest quality standards.”

“Quality must take precedence over volume for a luxury brand,” Lucid CEO Peter Rawlinson said in a phone call to investors Wednesday afternoon.

While other automakers did temporarily shut down production lines due to a shortage of chips, they often kept factories running by removing certain features like heated seats.

Overall, Lucid posted an adjusted net loss of $555.3 million, better than analysts polled by Refinitiv’s forecast of $619 million and a loss of $604.6 million in the first quarter. Revenue was $97.3 million. He said orders for his cars rose to 37,000, up from 30,000 outstanding orders at the end of last year.

Lucid Air named MotorTrend's Car of the Year
Lucid vehicles have won several top awards and Lucid Air has won Motor Trend Car of the Year award last year. The Dream version of this car could be the best in the industry 520 miles per charge.
But clear (LCDX) stocks were already down 46% this year by Wednesday’s close, and Thursday’s drop only exacerbated the fall.