Lucid Motors has drastically reduced its production target, again

Luxury EV start-up Lucid Motors has again changed its annual production target, lowering it to an expected production of between 6,000 and 7,000 vehicles, the company announced today. That’s just a fraction of the 20,000 cars Lucid originally promised to deliver in 2022. The Tesla competitor has produced just 1,405 vehicles so far this year, giving it just four months to build thousands of new cars.

Supply chain issues and a shortage of parts and raw materials are to blame for the slow production, the company claims. In a call with investors, the California company’s CEO, Peter Rawlinson, said he was planning a number of structural changes to increase production. “Our revised production guidance reflects the extraordinary supply chain and logistics challenges we have encountered,” Rawlinson said. “We have identified the main bottlenecks and are taking the appropriate measures: integrating our logistics operations, recruiting key personnel into the management team and restructuring our logistics and manufacturing organization.”

In addition to ongoing production difficulties, in May the company was forced to recall all of its 2022 Air electric vehicles due to wiring issues – a total of more than 1,000 cars. Such challenges did not seem to impact the demand for luxury vehicles. So far, there have been 37,000 reservations for Lucid Motor’s all-electric sedan, the Lucid Air, the company revealed in the . On top of that, Lucid plans to sell over 100,000 cars to the Saudi government, which has invested the company and owns a 62% stake.

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