Lucid Motors has drastically reduced its production target, again

Luxury EV startup Lucid Motors changed its annual production target again, lowering it to an expected output of between 6,000 and 7,000 vehicles, the company announced today. That’s just a fraction of the 20,000 cars that Lucid initially promised to deliver by 2022. The Tesla rival has produced just 1,405 vehicles so far this year, giving it just four months to build thousands of new cars.

Supply chain problems and a lack of parts and raw materials are to blame for the slow production, the company claims. In a call with investors, the California-based company’s CEO Peter Rawlinson said it plans a series of structural changes to boost production. “Our revised manufacturing guidance reflects the extraordinary supply chain and logistics challenges we faced,”[ads1]; Rawlinson said. “We have identified the primary bottlenecks and are taking appropriate action – bringing our logistics operations in-house, adding key hires to the management team and restructuring our logistics and manufacturing organization.”

On top of ongoing production struggles, the company was forced in May to recall all of its 2022 Air EVs due to wiring problems — more than 1,000 cars in total. Such challenges have not seemed to affect demand for the luxury cars. So far, there have been 37,000 reservations for Lucid Motor’s all-electric sedan, the Lucid Air, the company revealed in . On top of that, Lucid plans to sell over 100,000 cars to the government of Saudi Arabia – which poured into the company and owns a 62 percent stake.