Lucid shares plunge because it cuts manufacturing goal in half

New York
CNN Enterprise

Shares of luxurious electrical automotive maker Lucid plunged greater than 10% Thursday after the corporate disclosed it can make roughly half the vehicles this yr it had deliberate to construct.

The corporate mentioned it’s coping with the intense provide chain issues which have disrupted different automakers’ manufacturing as effectively. However its provide chain points precipitated it to completely shut manufacturing at instances in the course of the quarter, in addition to cut back its manufacturing goal to six,000 to 7,000 autos this yr, down from its beforehand said objective of 12,000 to 14,000 car.

The corporate mentioned it was capable of ship 1,400 vehicles in the course of the first half of this yr. It mentioned that in the course of the simply accomplished quarter it held again shipments of a “significant number” of vehicles “to ensure that these cars met the highest standard of quality.”

“Quality must take a priority over volume as a luxury brand,” mentioned Lucid CEO Peter Rawlinson in a name with buyers Wednesday afternoon.

Whereas different automakers have certainly briefly shut down manufacturing strains because of chip shortages, they’ve typically saved factories buzzing by eradicating sure options like heated seats.

General Lucid reported an adjusted internet lack of $555.3 million, which was higher than the forecast of a lack of $619 million from analysts surveyed by Refinitiv, and higher than its $604.6 million loss within the first quarter. Income was $97.3 million. It mentioned that the variety of orders it has for its vehicles has risen to 37,000, from the 30,000 backlog in orders on the finish of final yr.

Lucid’s vehicles have gotten some high awards, with the Lucid Air profitable the MotorTrend Automotive of the 12 months award final yr. The Dream version of that automotive can go an industry-best 520 miles on a single cost.

However Lucid

(LCDX) shares had already declined 46% thus far this yr by way of Wednesday’s shut, with Thursday’s drop solely including to the decline.