Lucid Motors reported difficulties in production ramp-up for its Gravity SUV, which is essential for growth. CEO Marc Winterhoff highlighted that production has not met expectations due to supply chain bottlenecks, particularly from magnet shortages following trade restrictions from China. The company is now transitioning to alternate magnet sources and anticipates production acceleration later this year. Lucid adjusted its annual production guidance, aiming for 18,000 to 20,000 units instead of 20,000. The second-quarter revenue was $259 million, with a significant EBITDA loss of $632 million.
"I feel that it is important to acknowledge that we are not where we want to be with Lucid Gravity production relative to our target at this point in the year," Winterhoff said. "However, our team has been working very hard all year to address bottlenecks in our supply chain and improve manufacturing efficiency. I'm happy to say that we have overcome most of these issues and are beginning to ramp up Lucid Gravity production."
Winterhoff chalked the sluggish output up to two main factors: suppliers that didn't have enough capacity and the limited supply of magnets from China. In response to President Trump's chaotic trade war, China in April restricted exports of rare earth magnets, which are crucial to car production. They go into all sorts of electronic motors, including those that make EVs go.
The CEO said Lucid was able to source and swap in different magnets, and that it has secured enough magnets to support production through the end of the year.
Lucid reported revenue of $259 million for the quarter and an adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) loss of $632 million.
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