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An excavator outside a Lucid Motors factory in Arizona
A Lucid Motors factory in Arizona | © Bloomberg

Tesla rival Lucid Motors on Wednesday halved its 2022 production target, citing “extraordinary supply chain” challenges as it tries to ramp up production and meet “strong demand.”

The California-based group backed by Saudi Arabia’s Sovereign Wealth Fund said 2022 production is now estimated at between 6,000 and 7,000 cars, down from an earlier estimate of 12,000 to 14,000, a cut from an initial forecast of 20,000. Vehicle.

Shares of the electric carmaker were already down 50 percent this year, reflecting the many challenges it faces in ramping up production of its Lucid Air — a luxury electric vehicle that starts at $89,000 and MotorTrend’s plans for 2022. Was named Car of the Year. Shares fell an additional 12. Percentage after hours on Wednesday.

Chief Executive Peter Rawlinson said, “We have identified the primary constraints and are taking appropriate measures, bringing our logistics operations in-house, adding key staff to the executive team and expanding our logistics and manufacturing organization. restructuring.”

“We continue to see strong demand for our vehicles with over 37,000 customer reservations, and I am confident that we will overcome these near-term challenges.”

The company said the total of 37,000 reservations totaled $3.5 billion in potential sales, but Lucid reported revenue of only $97.3 million in the June quarter, well short of its estimate of $147 million because it made only 679 in the three-month period. Cars delivered.

Lucid CFO Sherry House said the company has $4.6 billion in cash, “which we think is enough to fund the company well into 2023”.

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Despite recent stock market woes, Lucid had a market valuation of $34bn at the time of its earnings Tuesday, compared to $54bn at GM and $60.4bn at Ford, companies that regularly sell millions of vehicles per year.