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Lucid Motors cut down production target for 2022; lost $5 billion last year

Lucid Motors may have the longest range electric car, but discovering how hard it is to make it.

When Lucid started delivering the Lucid Air Dream Edition last year, it attracted the whole world’s attention. The car boasted the most extended range on any production electric vehicle, at 520 miles. The company raised the number of reservation slots to 520, which were snapped up with alacrity to mark the event. However, months after, Lucid has not been able to deliver entirely on that initial batch.

In signs that Lucid isn’t finding production easy, the company has now revised its production projection for 2022. Previously, Lucid expected to make 20,000 vehicles but has now settled for a more modest figure between 12,000 and 14,000 units.

Explaining why the change in target, the CEO of Lucid Peter Rawlinson said, “This reflects the extraordinary supply chain and logistics challenges we’ve encountered and our unrelenting focus on delivering the highest quality products. We remain confident in our ability to capture the tremendous opportunities ahead given our technology leadership and strong demand for our cars.”

While the company has not given details of what is causing the delay, the news has had an effect on Lucid’s shares. Its stock lost 14 percent on the exchange market. Lucid started trading after going public through a special purpose acquisition company, SPAC, last year.

Lucid has also released its financial performance for the last quarter of 2021. The EV startup lost $1 billion while bringing a revenue of $26.4. This brought the total loss for 2021 to almost $5 billion. However, losses at this stage of the company are not unexpected as it builds out its production capacity, which is capital intensive.

In addition, Lucid updated its car reservation figures. The company’s flagship and only model now has 25,000 pre-orders, up from 20,000 from the last update. This means Lucid has accumulated $2.4 billion worth of pre-orders.

Lucid has produced 400 vehicles as of the end of February. One hundred twenty-five of the luxury cars were delivered in 2021, and over 300 have been delivered altogether. Some of the deliveries have been made to the company’s executives and other employees.

Lucid also announced during its earnings call that its upcoming SUV, codenamed Gravity, is now delayed to 2024. Rawlinson said the delay was to ensure the best possible production process.

The luxury EV segment that Lucid is targeting is admittedly a crowded one and is already the most competitive. The startup is battling top of the line models like the Rivian R1T and R1S, Lexus LF-Z, Mercedes Benz EQS, BMW i4, Audi e-Tron, Polestar 2, Cadillac Lyriq, Jaguar i-Pace, Porsche Taycan, and of course, the Tesla Model S Plaid, which arguably enjoys the benefits of being the most visible EV brand.

Incidentally, Rawlinson used to work on the Tesla Model S before being appointed the CEO of Lucid.

Written by HackerVibes

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