Lucid Group's Q4 2021 earnings report released February 28 bring both bad news and good news for the company and its investors.
Starting with the bad news, the luxury EV maker said that it revised down its production forecast for 2022, blaming "extraordinary supply chain and logistics challenges."
The production target for 2022 is now between 12,000 and 14,000 vehicles, down from its previous goal of 20,000, Lucid said in a statement.
The California-based startup also revealed that it missed its delivery target for 2021, handing over 125 cars to customers. Following the announcement, Rivian shares (RIVN) lost 13% in after-market trading.
Overall, Lucid Group has built more than 400 Air sedans to date and has delivered more than 300 of them to customers. The company also reported more than 25,000 reservations for the electric luxury sedan, reflecting "potential sales of more than $2.4 billion."
On the financial side, Lucid said it booked $26.4 million in fourth quarter revenue, including $21.3 million from initial deliveries of the $169,000 Lucid Air Dream Edition, which began in October. As of December 31, 2021, cash on hand amounted to $6.4 billion.
CEO Peter Rawlinson didn't provide details regarding the logistical issues causing the production delays, but said he remained confident that Lucid is well placed to make the most of the demand for its vehicles.
"Looking ahead, we're updating our outlook for 2022 production to a range of 12,000 to 14,000 vehicles. This reflects the extraordinary supply chain and logistics challenges we've encountered and our unrelenting focus on delivering the highest-quality products. We remain confident in our ability to capture the tremendous opportunities ahead given our technology leadership and strong demand for our cars."
The statement also notes that the 2.85 million square foot expansion of Lucid's Casa Grande, Arizona, assembly plant is "on track." In addition, the company said it recently leased land in Saudi Arabia where it plans to start building its second factory in the first half of 2022.
Located in the newly built King Abdullah Economic City, the new facility would have a production capacity of 150,000 vehicles per year and may result in up to $3.4 billion of value to Lucid over 15 years.