Lucid shares plunge as it cuts production target in half
New York (CNN Business) Shares of luxury electric car maker Lucid plunged more than 10% Thursday after the company disclosed it will make roughly half the cars this year it had planned to build.
The company said it is dealing with the serious supply chain problems that have disrupted other automakers' production as well.
But its supply chain issues caused it to totally shut production at times during the quarter, as well as scale back its production target to 6,000 to 7,000 vehicles this year, down from its previously stated goal of 12,000 to 14,000 vehicle.
The company said it was able to ship 1,400 cars during the first half of this year.
It said that during the just completed quarter it held back shipments of a "significant number" of cars "to ensure that these cars met the highest standard of quality."
"Quality must take a priority over volume as a luxury brand," said Lucid CEO Peter Rawlinson in a call with investors Wednesday afternoon.
While other automakers have indeed temporarily shut down production lines due to chip shortages, they have often kept factories humming by removing certain features like heated seats.