Lucid Slashes Production. Is the Luxury EV Maker Finished?
Coming into Lucid Group's (NASDAQ: LCID) third-quarter earnings report, there were already signs that the company wouldn't reach its goal of producing 10,000 vehicles this year.
It had already told investors that it only produced 1,550 cars in the third quarter and delivered 1,457 vehicles, well below the run rate needed to produce 10,000 vehicles this year. Lucid confirmed those fears in its third-quarter earnings report Tuesday night, saying it now expected to produce 8,000 to 8,500 vehicles this year "to prudently align with deliveries."
That seemed to be a euphemism for the sluggish demand that much of the electric vehicle (EV) industry is experiencing right now for reasons that aren't fully clear. Tesla CEO Elon Musk has blamed higher interest rates and consumers' increased price sensitivity. Others have theorized that early adopters have already purchased an EV, and the next wave of customers will be harder to convince to switch from gasoline vehicles to electric. Lucid itself noted challenges in the macro environment multiple times on its earnings call.
Source Fool.com
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