Lucid cuts car production forecasts for 2022

Lucid Group It cut its forecast for auto production for the year by up to 40%, sending electric vehicle startup shares down 14% during the after-closing trading period.

The company on Monday cited supply chain constraints and parts quality issues to cut production to between 12,000 and 14,000 vehicles, down from an initial forecast of 20,000.

“This reflects the extraordinary supply chain and logistical challenges we have faced and our strong focus on delivering high quality products,” Lucid CEO Peter Rawlinson said in a statement. “We remain confident that we can seize huge opportunities in the future given our technological leadership and strong demand for our cars.”

Lucid did not specify what supply chain issues are causing the problems, but the global auto industry for more than a year has been grappling with a shortage of semiconductor chips. The shortage of spare parts caused factories to close intermittently.

The company’s first electric vehicle is called the Lucid Air Sedan. Since beginning retail production in the fall, the company has produced more than 400 vehicles at a new plant in Arizona. On Monday, the company said it delivered more than 300 of those units to customers, including 125 units during the fourth quarter.

Lucid announced production and sales forecasts as part of its fourth-quarter results reporting. The automaker, which went public via the SPAC deal in July, reported a $1 billion loss during the fourth quarter on revenue of $26.4 million. The company reported that it lost $4.8 billion in 2021.

Shares of Lucid, which went public in July through the SPAC deal, closed Monday at $28.98 a share, up 10%. The market capitalization of the company is $47.7 billion.

Lucid said customer bookings now exceed 25,000 units, reflecting potential sales of more than $2.4 billion. That’s up from 20,000 units in November.