Geared toward the luxury EV market, Lucid Group has struggled on the production front of late. The company has only produced 1,405 units in the first half of 2022, and it delivered just 679 cars in the second quarter. And to rub salt in the wound, management cut its original full-year production guidance of 12,000 to 14,000 units in half to 6,000 to 7,000.
So although its revenue experienced a huge boost to $97.3 million, up from $174,000 a year ago, the company is falling behind in its product roadmap.
For the full year, management expects to spend $2 billion in capital expenditures, which is a lot of capital to shell out for a business that is greatly underperforming expectations. Even so, the company remains confident that it has sufficient liquidity well into 2023. The situation could be worse, but that's not necessarily a whole lot of time for a company that recently slashed its production guidance by 50%.
According to the company itself, it currently has north of 37,000 car reservations, which translates to roughly $3.5 billion in potential sales. Knowing that, it's clear that Lucid Group doesn't have a demand problem; rather, it has an execution problem. Moving forward, the company's future depends on its ability to efficiently manage challenges and expand operations in a timely manner.
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