Lucid admits it won't build more than 7,000 cars this year.
The ongoing semiconductor chip shortage makes it extremely tough for legacy manufacturers to produce cars. It's even more challenging for startups trying to impress early adopters. Lucid Motors and Rivian are two prime examples, with the former being hit the hardest.
Rivian is on track to deliver 25,000 vehicles this year, but in March, Lucid had to adjust its original forecasted figure of 20,000 units produced in 2022 to somewhere between 12,000 to 14,000 cars. In a recent interview with Automotive News, Lucid's CEO, Peter Rawlinson, revealed that the updated production estimate had been cut in half.
Lucid will only produce between 6,000 to 7,000 vehicles this year. The famous EV maker currently has over 37,000 reservations, and at this rate, it will take Lucid over five years to clear the backlog.
"Our revised production guidance reflects the extraordinary supply chain and logistics challenges we encountered," said Rawlinson. "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."
During the first half of the year, Lucid's Arizona factory produced and delivered 1,405 Airs. The Air is the only model currently available in the USA, with an SUV expected to arrive in two years. A smaller Tesla Model Y rival will follow in due course.
The current Air range consists of three models. Pricing starts at $87,400 for the entry-level Pure and increases to $179,00 for the Grand Touring Performance.
Not one to miss a controversial Twitter post, Elon Musk made fun of Rivian's current situation in a beautifully-crafted self-deprecating post.
The poor sales impact more than just the company's income. Lucid says it currently has $4.6 billion in cash, cash equivalents, and investments, which is enough to keep it going into 2023.
Not hitting targets does affect the stock price, however. Lucid's shares dropped by ten percent on Wednesday.
While Lucid is facing tough times, both in terms of production and the quality of said products, it has made a deal with the Saudi Arabian government to deliver 100,000 models over ten years. This investment alone will likely boost shareholder confidence, giving the new manufacturer enough breathing room to get through the chip shortage.