Friday, July 12, 2024

Lucid Motors cuts EV production target by 2022 due to supply chain issues

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US electric vehicle manufacturer Lucid Motors has cut its production target by half from its original target for 2022.

Previously, Lucid Motors had targeted to produce 12,000 to 14,000 electric vehicles, but now only expects to produce 6,000 to 7,000 vehicles this year.

The production target cut was caused by supply chain and logistics problems, the company said in its annual report for the second quarter. The same reasoning was given when the production target was adjusted in March.

In the first half of this year, Lucid Motors produced only 1,405 electric vehicles. To reach the range of 6,000 to 7,000 vehicles, the company will have to work hard in the remaining months of 2022.

In total, pre-orders for Lucid Air totaled more than 37,000. Even if Lucid can build 7,000 electric vehicles this year, two-thirds of pre-orders remain unfulfilled.

“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,” says Peter Rawlinson, CEO and CTO of Lucid . “We continue to see strong demand for our vehicles, with over 37,000 customer reservations, and I remain confident that we shall overcome these near-term challenges.”

Supply chain issues are hitting the electric vehicle industry hard. Previously, Rivian also cut their electric vehicle production target due to a similar problem.

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