Lucid Motors disclosed its slicing its estimated comprehensive-calendar year production amount in fifty percent, down to 6,000 to 7,000 models right after provide chain difficulties and, much more importantly, generation and logistics problems cropped up as production sped up.
Welcome to “production hell,” as Elon Musk, CEO of rival Tesla Inc., described the early levels of ramping creation various a long time back.
The organization shipped a very little additional than 300 cars in the initial quarter, and 679 in the 2nd, in accordance to Lucid CEO Peter Rawlinson. Even so, as the corporation attempted to speed up output pace, it commenced to run into a variety of concerns.
The organization originally predicted production quantities amongst 12,000 and 14,000 for 2022, but the “revised outlook direction demonstrates the logistic worries I described as we began scaling up, which uncovered the immaturity of our logistics processes.”
Rawlinson reported the organization professional sporadic shutdowns of its output line thanks to source chain challenges, but also confronted issues accelerating its generation line to construct more autos. He cited the corporation initially couldn’t feed the appropriate areas to the line at the proper time and cadence. This impacted establish top quality, he said.