Lucid Motors, a luxury EV startup, recently disclosed that it had reduced its yearly production target once further to an anticipated output of between 6,000 and 7,000 vehicles.
The 20,000 automobiles that Lucid had initially committed to delivering in 2022 are barely represented by those figures. The Tesla rival has only made 1,405 automobiles so far this year, leaving it with only four months to make countless additional vehicles.
The corporation maintains that the delayed output is caused by problems with the supply chain and a lack of parts and raw materials. The CEO of the California-based business, Peter Rawlinson, informed investors during a conference call that several structural adjustments are being planned to boost production. Our updated production plan, according to Rawlinson, “Our revised production guidance reflects the extraordinary supply chain and logistics challenges we encountered.”
“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.”
In addition to ongoing production concerns, the business was compelled to recall over 1,000 2022 Air EVs in May due to wiring problems. These difficulties don’t seem to have an effect on luxury vehicle demand. The business stated in the call that 37,000 reservations have been made for Lucid Motor’s all-electric sedan, the Lucid Air. Additionally, Lucid intends to sell more than 100,000 vehicles to the Saudi Arabian government, which invested over $1 billion and holds a 62 percent share in the business.
How it became Lucid Motors
Luxury EV Lucid Motors, formerly Atieva, was established in 2007 and is headquartered in Newark, California, which is close to Silicon Valley. As Atieva, Lucid initially concentrated on creating batteries and electric drivetrains for other automakers. .Eventually, it had amassed more than 50 US patents for only its primary battery technology.
They were a very capable manufacturer of premium linked electric battery packs and powertrains by the end of 2013, but they still had a bigger ambition. They believed that meaningful innovation could only be produced if they could free themselves from the constraints and limitations that now exist in the car industry. It was a great experience and was empowering for the company. They were free to define their own experience since they were not constrained by car industry norms. They began to envision a car that fully exploits electrification without limitations.
The business formally declared its intention to rebrand as Lucid Motors in October 2016. The budding company also disclosed intentions to develop an all-electric luxury car. Officials from the Lucid Motors and the state of Arizona announced plans for the automaker to start construction in Casa Grande on a 700 million dollar facility with a 590 acre footprint. North America’s first luxury ev factory.