Lucid Motors has slashed its production target, again

Luxury electric vehicle startup Lucid Motors has again changed its annual production target, lowering it to an expected output of between 6,000 and 7,000 vehicles, the company announced today. That’s just a fraction of the 20,000 cars Lucid initially promised to deliver by 2022. Tesla’s competitor has only produced 1,405 vehicles so far this year, giving it just four months to build thousands of new cars.

Supply chain issues and shortages of parts and raw materials are to blame for the low output, the company says. In a call with investors, the California-based company’s CEO, Peter Rawlinson, said he is planning a series of structural changes to increase production. “Our revised production guidance reflects the extraordinary logistical and supply chain challenges we face,” said Rawlinson. “We have identified the major bottlenecks and are taking appropriate action: bringing our logistics operations in-house, adding key hires to the executive team, and restructuring our manufacturing and logistics organization.”

Adding to ongoing production difficulties, in May the company was forced to recall all of its 2022 Air EVs due to wiring issues — a total of more than 1,000 cars. Such challenges do not seem to affect 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 more than 100,000 cars to the Saudi Arabian government, which has invested in the company and owns a 62 percent stake.

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