Lucid Plunges 17% On Lowered Production Guidance Due To Supply Chain Pressures

Shares of Lucid are getting pounded to start the trading session on Tuesday, after the company lowered its production guidance for 2022.

Lucid said it expects 12,000-14,000 units for 2022, down from previous expectations of 20,000. The company cited “extraordinary” supply chain pressures, once again raising a curious question as to how one EV manufacturer Tesla has sidestepped a semi crisis and supply chain pressures that are dragging down the rest of the industry.

Regardless, Lucid shareholders are selling first and asking questions later. Around the cash open the stock was down about 17% to $24.

A Bloomberg wrap up of the report on Tuesday morning noted that Guggenheim analyst Ali Faghri said: “While 2022 delivery targets were lowered significantly, slower near-term ramp and the ‘hockey stick’ cadence likely mean there isn’t much cushion.”

The analyst said that management should be “commended” for starting deliveries amidst the geopolitical and supply chain backdrop.

“Strong initial customer feedback and industry awards” will drive the company’s success going forward, Faghri said. He also pointed out strong growth in reservations serving as positive demand visibility. Customer reservations now exceed 25,000, Bloomberg pointed out. 

In its report, Lucid also announced an agreement with Saudi Arabia for an EV factory, which it said it would start building in the second half of 2022. 

The company has delivered over 300 vehicles to date.