Lucid Group Inc LCID CEO Peter Rawlinson addressed the nearly 1,000 electric vehicles that have been manufactured but not yet delivered at the company’s third-quarter earnings call.
What Happened: On Tuesday, Rawlinson, who is also known for his work on Tesla Inc’s TSLA Model S, addressed the reason why these cars were stored.
“This is a function of the cadence by which we’ve ramped up. We’ve made remarkable strides in ramping up. And naturally, there’s going to be a phase lag between producing the cars and getting them out to our dear customers,” he said.
Lucid CFO Sherry House said the company was expecting to produce vehicles at a pace with a higher volume.
“We’re accelerating production, and we’re also going to be initiating our international deliveries in the fourth quarter, and that requires longer in-transit time.”
See Also: Best Auto Parts Stocks Right Now
Why It Matters: Lucid reported record production of 2,282 vehicles in the third quarter, more than triple from the preceding quarter. Delivered vehicles amounted to 1,398 units in the period.
Rawlinson said that the company had made “significant progress” towards achieving its 2022 production target of 6,000 to 7,000 vehicles.
Lucid reported third-quarter revenue of $195.5 million, missing a Street estimate of $209.1 million, according to Benzinga Pro data.
Price Action: On Wednesday, Lucid shares dropped 17% to $11.21 in the regular session and rose 0.6% in the after-hours trading.
Image and article originally from www.benzinga.com. Read the original article here.