Lucid Group Inc. is an American luxury electric car manufacturing company based in Newark, California. Due to some extraordinary supply chain and logistics challenges, Lucid cut down its production target of 2022 that is from a former estimated goal of 20,000 to a range of 12,000 to 14,000. The company witnessed a loss of 1.05 billion dollars in the final quarter of 2021 is estimated to be a crash of 14% of market share which is more than triple of the fall from a year earlier.
Lucid Sinks After Cutting Production Goal on Commodity Woes
Lucid has blasted off the delivery of its Lucid Air premium EV sedan that costs around $169,000 that runs on a driving range of 520 miles or 835kms on a single charge that is a more advanced range when compared to its strong rival, Tesla. The California-based automobile maker also came up short on the target of its last year’s production. In an earnings statement conveyed on Monday, it is told that in the final quarter of 2020, Lucid was only able to sell off 125 Lucid Air sedans thus failing to meet the 2021 production target of 577 vehicles. Lucid even held up the release of its second vehicle Gravity SUV, from 2023 to the first half of 2024. Likewise, other imminent electric vehicle makers like Rivian Automotive and Lord Stown Motors also face the same fate of dropping production targets.
Joel Levington, the BI credit analyst remarked that “ Heavy capital spending approaching $2 billion in 2022, combined with slashed production targets due to supply-chain constraints, may chew up more than half of Lucid’s $6.2 billion of cash this year, a bump in the road for its long-term aspirations. A capital raise is possible this year.”
Now, Lucid is trying to uplift its grandeur and to place its own seat in the electric vehicle space by framing a plan to produce 12,000 to 14,000 vehicles this year down from its previous goal of 20000.
At present, Lucid has a factory in the United States of America where it targets to shoot 365,000 vehicles a year. As Lucid owes approximately 63% of its stake to Saudi Arabia Public Investment Fund ( PIF), Lucid announced to commence its construction in the Saudi Arabia Factory this year by building a new production facility out there. This construction procedure will initiate by the first half of 2022 aiming at the target to produce 150,000 vehicles a year.