(Bloomberg) — Lucid Group Inc. fell as much as 13% in late trading after the luxury electric-vehicle startup halved its 2022 production target to 6,000 to 7,000 cars.
It’s the second time the Newark, California-based startup has reduced its output goal this year, from an original target of 20,000 cars. Saudi-backed Lucid said it produced 1,405 vehicles in the first half of 2022 and attributed the lower full-year target to “extraordinary supply chain and logistics challenges.” The company delivered just 1,039 cars.
The weak production led Lucid to miss sales estimates. It pulled in just $97.3 million in revenue, well below the $147.5 million consensus compiled by Bloomberg. Its adjusted loss of $414.1 million, leaving out items including interest and taxes, compared with an average estimate of $410.7 million.
Lucid finished the quarter with $4.6 billion in cash and equivalents, which Chief Financial Officer Sherry House said should be sufficient to fund the company “well into 2023.”
Like other automakers, Lucid has been dealing with supply chain snags and resulting production hiccups. It has brought on new talent to address some of those issues, including a new senior vice president of operations announced Wednesday. Lucid is also still complying with a US Securities and Exchange Commission investigation into its 2021 merger with a special purpose acquisition company, the company said in a Wednesday regulatory filing.
The stock was down 11% to $18.25 as of 4:18 p.m. in New York. The shares have slumped 46% this year.
(Updates with sales figure in fourth paragraph)
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