The first issue is mostly resolved due to waning COVID restrictions in China, and LCID’s deal with Panasonic for batteries. The first prong was supply chain issues and the second was production capacity. Previously, production was a two-pronged issue for LCID. These reductions caused LCID to extend its waiting period for EV reservations, causing demand to plummet as customers sought out EV manufacturers with shorter waiting periods. For reference, Polestar ( PSNY ) produced 21,000 EVs in the last quarter of 2022 alone. Productionĭespite CEO Rawlinson's statement during its Q4 earnings call that LCID has "solved production", I remain unconvinced.ĭuring 2022 LCID cut its production guidance twice and only produced 7,180 EVs that year. Now that LCID has enough funds to scale production, its production woes could soon be behind it. That said, I believe LCID is a buy at the current dip price once its offering closes. Despite the understandable frustration of LCID’s long-suffering shareholders, I believe this is an overreaction since dilution is necessary for LCID to secure its future. As a result, shareholders expressed their frustrations causing the stock to fall 21% since the announcement. In order to remedy this issue LCID announced a $3 billion offering, which will cause a 20% dilutive effect. It also owns and operates a vehicle service network comprised of service centers in metropolitan areas and a fleet of mobile service vehicles.Inadequate production is the root of all of Lucid Group, Inc.'s ( NASDAQ: LCID) problems. Lucid Air is manufactured at its greenfield electric vehicle manufacturing facility in Casa Grande, Arizona, Advanced Manufacturing Plant-1. The Lucid Air is an electric sedan that redefines both the luxury car segment and the electric vehicle space. It focuses on in-house technology innovation, vertical integration, and a clean-sheet approach to engineering and design have led to the development of Lucid Air. It also boasts a product roadmap of future vehicle programs and technologies. It offers its own geographically distributed retail and service locations and through direct-to-consumer online and retail sales. The Company is focused on designing, developing, manufacturing, and selling of electric vehicles (EV), EV powertrains and battery systems using its own equipment and factories.
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