Electric vehicle maker Lucid Group has scaled back on its production expectations once again this year. And the news didn’t go well with investors, causing Lucid’s stock to plunge close to 12% in after-hours trading.
Releasing its Q2 report late on Wednesday, Lucid revealed that it expects to make somewhere between 6,000 to 7,000 cars in 2022. This means that the company cut its projections in half, considering that the first-quarter report had the guidance of 12,000-14,000 produced cars. The number also becomes more worrying when you know that Lucid started the year expecting to produce 20,000 cars.
Lucid produced 1,405 EVs in 2022 and delivered 679 units in Q2. The company’s slow pace was attributed to supply chain and logistics challenges, according to CEO Peter Rawlinson.
“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,” Rawlinson explained.
Shares of Lucid seemed to progress well in recent weeks after losing almost 50% of their value year to date. However, the lower production forecast has put an end to this positive trend. After closing at $20.56 on Wednesday, Lucid’s stock has dipped to $18.15 after hours.