Lucid Group, a Nasdaq-listed passenger EV maker, halved its production forecast for 2022 to 6,000–7,000 units from its previous target of 12,000–14,000, citing global supply chain and logistics challenges.

The company’s share price dropped by 10% following the announcement. Lucid states that they have identified the primary bottlenecks and are bringing their logistics operations in-house and restructuring their logistics and manufacturing organization to improve the situation.

The company reported Q2 revenue of USD 97.3 million (up from less than USD 1 million in Q2 2021) as well as 37,000 total reservations for its EVs, representing potential sales of about USD 3.5 billion.

Lucid also reported an operating loss of USD 559 million (+125% YoY) for the quarter. The increased expenditure stemmed from manufacturing costs (up from USD 19,000 in Q2 2021 to USD 292 million), R&D (+13% YoY), and selling and administrative activity (+127% YoY).

Analyst QuickTake: This is the latest impact of a string of EV manufacturers who have been struggling with a shortage of essential components such as chips as well as soaring commodity prices for batteries. This situation is further exacerbated by the Russia-Ukraine war, which is creating supply chain disruptions for nickel and other metals used in EV batteries.