Why did Lucid stock drop today? Production update disappointment
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Lucid Group (LCID
-14.0%) fell sharply on a rough day in general for the electric vehicle sector.
Lucid (NASDAQ:LCID) also issued a disappointing production update.
Bank of America said the lowered outlook from Lucid for production in 2022 of 12K to 14K units was not entirely unexpected directionally, but somewhat surprising in magnitude with LCID attributing the new outlook to supply chain and logistics challenges.
Lucid's supply chain update: "The supply chain issues that we are experiencing from factors including components shortages, our insistence on the highest quality parts and logistics issues. In some cases, the pandemic meant that our teams could not visit our suppliers in person to ensure alignment on engineering specifications and tooling. As travel has opened back up, our supplier quality teams have been able to address many of these issues. I will note that these issues are impacting only a handful of our approximately 250 suppliers and are not affecting critical single source or dual source components like semiconductors or batteries. Instead, it's been commodity items like glass and carpets, and we've adapted by changing our specifications or indeed switching vendors if needed."
Dig into the Lucid Group earnings call transcript.