Lucid Motors has once again said that it would cease production this year after declaring a decrease in manufacturing targets in February.
Lucid Motors has Lowered Its 2022 Manufacturing Goal Again
For the second time this year, luxury electric car manufacturer Lucid Motors is cutting its production target for 2022. The firm, which has its headquarters in Newark, California, said it will now aim to produce 6,000-7,000 automobiles instead.
In February, Lucid lowered their initial forecast of 20,000 cars produced in 2022 to 12,000-14,000 vehicles. It was yet another setback for the EV manufacturer, which is desperately trying to take some of Tesla's market share with its opulent, long-range Lucid Air car. In the most recent quarter, Lucid announced a 10% price increase for the only model it is currently producing.
According to Peter Rawlinson, CEO and CTO of Lucid, the unprecedented supply chain and logistical issues they faced are reflected in their updated production forecast.
"We have identified the main bottlenecks and are addressing them by reorganizing our logistics and manufacturing organization, bringing our logistics operations in-house, and adding essential recruits to the executive team," he said.
With over 37,000 customer bookings for the company's automobiles, they are still seeing strong demand, and the CEO is confident that they can get through these immediate challenges.
Lucid reported a $220 million loss on $97.3 million in sales in its second-quarter results, which were disclosed on Wednesday. Only 679 automobiles total, according to the corporation, were delivered to consumers in the last three months. Overall, Lucid reported a $4.8 billion loss for 2021. Last summer, the business went public via a combination with a SPAC or particular purpose acquisition company.
Automakers are Upset by Democrats' Plan to Cut the Price of Electric Cars
Democrats' ambitious proposal to lower the price of electric automobiles and hasten the switch from gas-powered vehicles is infuriating automakers.
Tax credits that decrease the price of electric vehicles by thousands of dollars are included in the Senate climate plan that might be voted on this week, but only for consumers who purchase from corporations that transfer their supply chains away from China and other nations without a free-trade deal. The EV battery business has restricted access to minerals and other resources.
Some automakers and trade groups say the proposal's timelines are unrealistic. They want them extended despite political resistance. Some clean-vehicle supporters argue for looser laws to speed the adoption of electric cars, while others say the standards are required to stabilize a potentially unstable supply chain.
The conflict highlights the significant difficulty the United States confronts in trying to regain control of manufacturing lines at a crucial juncture in the energy transition.
Analysts expect the limitations will preclude most electric car purchasers from getting the $7,500 tax credit. Tesla, which moved supply chains to the U.S. years ago, is best-positioned. Toyota is significantly dependent on supplier networks that don't fulfill climate law criteria. Neither firm commented.
However, Sen. Joe Manchin III (D-W.Va.), who negotiated the measure, championed tax credit limits. Manchin is skeptical about electric car subsidies because they are too pricey for middle- and low-income drivers. He's also concerned about China's manufacturing control.
In comments to reporters on Tuesday, Manchin seemed undeterred by the worries of the automakers.
