July 12 (Reuters) – Lucid Group (LCID.O) said its production in the second quarter fell from the previous three months while deliveries remained flat, sending shares of the luxury electric car maker down nearly 6 percent on Wednesday.
The Saudi-backed startup has struggled to ramp up production in the face of supply chain issues, while a price war launched by market leader Tesla (TSLA.O) in January has ramped up competition.
Lucid delivered 1,404 vehicles in the quarter ended June 30, compared to 1,406 vehicles in the prior quarter. Its production decreased by 6 percent compared to the previous quarter, to 2,173 cars.
The company had cut its 2023 production forecast and reported lower-than-expected first-quarter revenue in May, taking a hit from Tesla’s price war and rising interest rates.
The Air luxury sedan starts at $87,400, which puts it in direct competition with the Elon Musk-driven automaker’s Model S that costs $88,490.
Lucid is also grappling with a liquidity crunch and revealed plans in May to raise about $3 billion through a stock offering, nearly two-thirds of which will come from Saudi Arabia’s Public Investment Fund, the kingdom’s largest investor.
Last month, it signed a deal with Aston Martin (AML.L), giving the British company access to electric powertrain and battery technologies in exchange for a 3.7% stake.
The company said it will report its second-quarter financial results on August 7, after markets close.
Reporting by Akash Sriram in Bengaluru; Editing by Aaron Kuyor
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