Lucid Motors ramps up production as supply chain issues ease

The electric luxury sedan maker said it made more than 7,000 cars in 2022, hitting a reduced target.

Lucid Motors said on Wednesday it increased production of its luxury electric sedans by more than 50% in the fourth quarter as better supplies of parts and materials helped the company slightly exceed its manufacturing target for the whole year. .

The automaker said it produced 7,200 vehicles in 2022, its first year of manufacturing in significant numbers, including 3,500 in the fourth quarter. In August, the company said it was aiming to manufacture 6,000 to 7,000 cars during the year.

That target, however, had been lowered by against a previous target of 20,000 vehicles. And Wednesday's report disappointed Wall Street investors who expected more. Lucid shares fell more than 7% in after-hours trading.

Even though shortages of some parts and materials persist, "it's much better than before," Peter Rawlinson, Lucid's chief executive, said in an interview.

Car shipping remains an issue, Mr. Rawlinson, helping explain why deliveries of 4,400 vehicles last year fell short of production.

Along with Rivian, a maker of electric pickup trucks, Lucid is among the most prominent companies trying to capitalize on the shift to electric vehicles and challenge traditional automakers.

Lucid's main selling points are efficiency and range. All variants of the sedan can travel at least 450 miles on a full charge, according to the Environmental Protection Agency. That's more than any Tesla model.

Still, the odds are long. Tesla is the only new American automaker in more than a century to achieve mass production and survive as an independent company. Automotive manufacturing requires huge up-front investments, and profit margins are typically slim.

Lucid's cheapest model, the Air Touring, sells for $107,400 , competing for wealthy buyers with companies like Mercedes. -Benz and Porsche who introduced luxury electric cars. Lucid has announced plans to start selling an $87,000 model this year.

The company plans to produce cars in the next few years that could compete with Model 3 and Y more affordable from Tesla. vehicles, Rawlinson said on Wednesday.

Lucid, which is backed by Saudi Arabia's sovereign wealth fund, has $4.9 billion in cash, enough to survive the least during the first quarter of 2024, the company said in an earnings report on Wednesday.

Sales for the last three months of 2022 were 258 million dollars, compared to $195 million in the third quarter. Lucid posted a loss of $473 million in the fourth quarter, compared to a loss of $530 million in the prior quarter.

The company does not expect to realize of profits in 2023 as it continues to ramp up production, Sherry House, Lucid's chief financial officer, said in an interview. Potential customers have reserved more than 28,000 vehicles this week, the company said, not including up to 100,000 cars that Saudi Arabia has agreed to buy.

Mr. Rawlinson warned that any reservations, which are not binding, will result in sales. “You can never count your chickens before they hatch,” he said.