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 brought on it to completely shut manufacturing at instances throughout the quarter, in addition to reduce its manufacturing goal to six,000 to 7,000 automobiles this yr, down from its beforehand acknowledged objective of 12,000 to 14,000 automobile.

The corporate mentioned it was capable of ship 1,400 vehicles throughout the first half of this yr. It mentioned that throughout the simply accomplished quarter it held again shipments of a “vital quantity” of vehicles “to make sure that these vehicles met the best customary of high quality.”

“High quality should take a precedence over quantity as a luxurious model,” mentioned Lucid CEO Peter Rawlinson in a name with buyers Wednesday afternoon.

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

Total 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 prime awards, with the Lucid Air profitable the MotorTrend Automobile 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

shares had already declined 46% up to now this yr by means of Wednesday’s shut, with Thursday’s drop solely including to the decline.