The small electric manufacturer Lucid Group Inc. has only just started production of its Air sedan and is already suffering from a supply crisis. During the first quarter, Lucid managed to assemble 700 vehicles, while 360 of them were delivered to their new owners. Lucid is said to have more than 30,000 orders for its sleek sedan.
Despite these lackluster numbers, Lucid CEO Peter Rawlinson was pleased with the number of deliveries and vehicles assembled, and said Lucid has accelerated its production rate despite the complex supply of components and cost inflation. In fact, in April alone, more than 300 vehicles were delivered.
However, the objective of delivering 12,000 to 14,000 units in 2022 remains possible according to the main interested party, Lucid, which is not at its first downward revision because of this global crisis. The objective was set at 20,000 cars assembled in 2022, but this goal has already been revised downwards since then.
Unsurprisingly, Lucid, as is the case with many of these new small manufacturers, recorded operating losses of around $598 million on revenues of $57.6 million.
In the first quarter financial results, Lucid posted an operating loss of $598 million on revenues of $57.6 million. Due to a $523 million improvement in the value of its common stock, Lucid’s net loss was only $81.3 million compared to a $2.9 billion loss in the same quarter last year.
Lucid also plans to raise prices on various liveries of its Air sedan, starting June 1, leaving little time for consumers who can still reserve a copy before the price increase.
Lucid CFO Sherry House told Reuters in an interview that part of the reason for the rate hike is the continued high cost of parts and shipping. In addition, the second phase of the plant’s construction would cost more than expected, another cause of the price increase. Lucid intends to produce more than 90,000 vehicles per year by the end of 2023. Better yet, by 2025, capacity would increase to 350,000, while a second plant in Saudi Arabia would add 150,000 vehicles to that number.
The only good news for consumers interested in Lucid’s vehicles is that there will eventually be cheaper liveries on the market by the end of the year, according to the brand.