Lucid Group is slicing its automotive manufacturing forecast for this 12 months by as a lot as 40%, sending shares of the electrical automobile start-up tumbling 13% throughout after hours buying and selling.
The corporate on Monday cited provide chain constraints and elements high quality points for slashing manufacturing to between 12,000 and 14,000 automobiles, down from preliminary expectations of 20,000.
“This displays the extraordinary provide chain and logistics challenges we have encountered and our unrelenting give attention to delivering the highest-quality merchandise,” Lucid CEO Peter Rawlinson mentioned in an announcement. “We stay assured in our skill to seize the super alternatives forward given our expertise management and robust demand for our automobiles.”
The corporate’s first electrical automobile is known as the Lucid Air sedan. Since starting retail manufacturing within the fall, the corporate has produced greater than 400 of the automobiles at a brand new manufacturing facility in Arizona. It has delivered greater than 300 of these models to clients, together with 125 models throughout the fourth quarter, the corporate mentioned Monday.
Shares of Lucid, which went public in July by a SPAC deal, closed Monday at $28.98 a share, up by 10%. The corporate’s market cap is $47.7 billion.
This can be a growing story. Test again for updates.