Shares in Lucid Group Inc (NASDAQ:LCID), the upstart rival to Tesla, are set to go sharply into reverse on Thursday after it posted lower revenue than expected and cut its production guidance for the second time this year.
Shares of the company fell 12.60% to US$20.56 in after-hours trading following the announcement.
Lucid more than halved its full-year production volume outlook to 6,000-7,000 vehicles for 2022 due to what it said were "extraordinary supply chain and logistics challenges", Back in February it revised its original estimate of 20,000 vehicles to 12,000-14,000.
"Our revised production guidance reflects the extraordinary supply chain and logistics challenges we encountered," said chief executive Peter Rawlinson, the Englishman who was previously Elon Musk's vice president of vehicle engineering and chief engineer of the Tesla Model S.
"We continue to see strong demand for our vehicles, with over 37,000 customer reservations, and I remain confident that we shall overcome these near-term challenges."
For the second quarter ended June 30, 2022, revenues at the luxury EV maker were US$97.3mln, falling woefully short of analysts' estimates of US$145.49mln.
Second quarter revenue was primarily driven by deliveries of Lucid Air vehicles, its ultra-premium Lucid Air sedan.
The Lucid Air, which it hopes will carve out some market share from Tesla Inc (NASDAQ:TSLA) after beating its long-range record last year, was said to be enjoying continued strong customer demand, with more than 37,000 reservations as of date, representing approximately US$3.5bn in potential sales.
"We continue to have a strong balance sheet, closing the quarter with US$4.6bn cash, cash equivalents and investments, which we believe is sufficient to fund the company well into 2023," said Sherry House, chief financial officer.