Lucid’s CEO has doubled down on its production forecasts despite the fact the company is hampered by its “ability to sell cars,” with the company hoping to expand market share with price cuts and confirmation of a new SUV model arriving next year.
Speaking with Reuters, Lucid’s Chief Executive Officer, Peter Rawlinson has said that the company is sticking to its initial production targets, stating it has enough cash on hand to put a battery-electric SUV into production next year.
All up, Lucid is aiming to produce 10,000 vehicles for the year in 2023, though production rates dropped to just 1401 vehicles in the latest quarter and has responded with price cuts across the Lucid Air range.
“We are not limited by our ability to manufacture,” says Rawlinson, adding that “most of the supply chain has now come through out of the Covid era.”
Instead, Rawlinson stated that Lucid was “limited by our ability to sell the cars right now, and that is my key focus.”
The statements come as Lucid published its second-quarter financials that sunk below forecasts, though liquidity is high thanks to significant investments from the Saudi Arabian Public Investment Fund (PIF) that will see some of Lucid’s vehicles produced within the Kingdom and a new-found effort expanding Lucid’s sales in the Middle East.
Revenue dropped lower than the forecast of USD $175 million to USD $150 million, while Lucid’s healthy cash reserves of $2.78 billion look to give the company enough time to put its ‘Gravity’ SUV into production and cash in on the industry’s most lucrative vehicle segment.
The Lucid Gravity is set to be launched sometime in 2024, with an unveiling slated for November.
Lucid’s Chief Financial Officer, Sherry House has said that “people have been affected by the macroeconomic climate… so we’re bringing that price down.”
She added that as supply chain constraints have eased, this has opened the window for a so-called “significant amount of opportunity” for further cost-cutting measures within the company.
