4 Aug 22

Lucid Motors faces a setback as the company slashes production goals

Lucid Motors faces a setback as the company slashes production goals

Luxury electric vehicle (EV) maker Lucid Motors is facing a major setback as the company has slashed its production goals for 2022 for a second time. 

Rivalry in the EV market is already taking a big toll on Lucid Motors, which only delivered 679 vehicles in the first quarter of 2021 with a $97.3 million revenue and $220 million loss. The EV maker announced that it lost $4.8 billion in 2021 and spent $823 million only in the last quarter. 

Blaming the supply chain and logistics challenges, the California-based company slashed the production goals for 2022 again and set a production rate of 6,000 to 7,000 vehicles in 2022. Lucid Motors revised the production goal first in February, reducing the 20,000 goal to 12,000 to 14,000 units. 

Nevertheless, Lucid Motors is determined to pursue its business goals, stating that the company will restructure logistics and manufacturing organisations. Lucid Motors says it has more than 37,000 customer reservations to fulfil and is confident it will overcome the challenges. 

According to Electrek, Lucid Motors still have around $4.6 billion in cash and investments. Yet, defying several automakers, including Tesla, Audi and Polestar, in the EV market, Lucid Motors may need to raise funds to offset its losses. 

Image: Lucid Motors

Authored by: Mufit Yilmaz Gokmen