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| Lucid said an easing of supply chain issues helped boost electric vehicle production in the fourth quarter. Brian Durbara |
WITHINBUCKS - Lucid Motors said Wednesday that it has increased production of luxury electric sedans by more than 50% in the fourth quarter.
The automaker said he will produce 7,200 cars in 2022. This is the first year of production for quite a few, including his 3,500 in Q4. The company said in August that it aims to produce 6,000 to 7,000 vehicles by the end of the year.
However, that target was lowered from his previous goal of 20,000. Lucid's stock price fell more than 7% in after-hours trading.
Despite continued shortages of some parts and materials, Lucid CEO Peter Rawlinson said in an interview, "It's a lot better than it used to be."
Car shipments remain an issue, Rawlinson said, which helps explain why his 4,400 car shipments last year fell short of production.
Along with electric pickup truck maker Rivian, Lucid is one of the most prominent companies looking to take advantage of the move to electric vehicles to challenge traditional automakers.
Lucid's main selling points are efficiency and range. All variants of the sedan can drive at least 450 miles on a full charge, according to the Environmental Protection Agency. This is better than any Tesla model.
Still, the odds are long. Tesla is the only new American automaker to reach mass production and survive as an independent company. Manufacturing a car requires a huge up-front investment and typically has a marginal profit margin.
Lucid's cheapest model, the Air Touring, retails for $107,400, competing with Mercedes-Benz and Porsche, which have introduced luxury electric vehicles for the wealthy.
Rawlinson said Wednesday that he plans to produce cars within the next few years that can compete with Tesla's more affordable Model 3 and Model Y.
His Lucid, a Saudi wealth fund-backed sovereign, has at least $4.9 billion in cash to survive through the first quarter of 2024, the company said on Wednesday's earnings call.
His sales in the last three months of 2022 increased from $195 million in the third quarter to $258 million. Lucid reported his $473 million loss in the fourth quarter, down from his $530 million loss in the previous quarter.
Lucid's chief financial officer, Sherry House, said in an interview that he doesn't expect the company to be profitable in 2023 as it continues to ramp up production.
Lucid said Wednesday that he aims to produce 14,000 cars from 10,000 in 2023. The potential customer has booked more than 28,000 cars as of this week, the company said.
Rawlinson cautioned that not all non-binding reservations result in sales. "You can't count unhatched chickens," he said.
Lucid ramps up production as supply chain issues ease
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