Lucid Motors sticks to its production target despite a slow quarter.


Lucid Motors, a maker of electrical vehicles seen as a possible challenger to Tesla, mentioned Thursday that it had delivered just a few hundred automobiles throughout the first three months of the yr however maintained that it was nonetheless on observe to promote not less than 12,000 by the top of 2022.

The corporate, led by a former prime Tesla engineer, has been thought of one of the promising start-ups making electrical automobiles. However it disenchanted traders in February when it reported issues making sufficient vehicles at its Arizona manufacturing facility to fulfill demand, and minimize its manufacturing forecast. Lucid shares have misplaced two-thirds of their worth since peaking in November.

Lucid mentioned it was struggling to accumulate the elements wanted to meet reservations it has obtained for 30,000 automobiles. “Much like many firms in our trade, we proceed to face global-supply-chain and logistics challenges, together with Covid-related manufacturing facility shutdowns in China,” Sherry Home, Lucid’s chief monetary officer, mentioned in an announcement Thursday.

In an interview, Ms. Home mentioned that demand for Lucid vehicles remained robust. A further 5,000 reservations obtained since February would, in the event that they grow to be agency orders, translate into $500 million in extra gross sales, she mentioned.

Lucid delivered 360 automobiles within the first quarter, up from 125 within the earlier quarter. In April, the corporate delivered 300 vehicles, an indication that manufacturing is accelerating shortly, Peter Rawlinson, who engineered the Tesla Mannequin S earlier than founding Lucid, mentioned in an interview Thursday. He and Ms. Home mentioned that offer chain issues are easing.

“We truly see a lightweight on the finish of the tunnel now,” Mr. Rawlinson mentioned. The corporate has suffered from shortages of some commodities, he mentioned, however declined to specify which of them.

The corporate reported a lack of $81 million within the first quarter of 2022 on gross sales of $58 million. In the identical quarter a yr earlier, when the corporate’s income was negligible, Lucid reported a lack of $2.9 billion.

Lucid’s debut product, the $169,000 Lucid Air Dream Version sedan, was named automobile of the yr by MotorTrend journal, which praised the car’s styling, workmanship and vary of almost 520 miles. Lucid and Tesla automobiles dominate the Environmental Safety Company’s rankings of most-efficient electrical vehicles.

However like many new automobile firms, Lucid has confronted difficulties in ramping up manufacturing. Lucid mentioned Thursday it might increase costs for brand spanking new reservations starting in June. Probably the most reasonably priced car will value $87,400 earlier than authorities incentives, and the costliest shall be $179,000. Tesla and different producers of electrical vehicles have additionally raised costs considerably, pushing the automobiles additional out of attain for middle-income patrons.

“We face extraordinary inflation pressures significantly for some uncooked supplies that have an effect on the worth of battery cells,” Mr. Rawlinson mentioned. However he additionally mentioned he was “extremely optimistic concerning the future for E.V. adoption,” due to effectivity enhancements that can scale back prices.

With money reserves of $5.4 billion from traders, together with the sovereign wealth fund of Saudi Arabia, Lucid mentioned, it has sufficient cash to maintain going nicely into 2023.



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