Lucid Motors lowers production forecast and blames supply chain chaos.

Lucid Motors, a widely praised electric-car maker that the company has struggled to mass-produce, said Wednesday it delivered 679 vehicles in the second quarter and cut its production target for the year by nearly half.

The California company, which hopes to challenge Tesla in the luxury car market, had told investors earlier this year that it would deliver 12,000 vehicles by 2022. Lucid cut that target on Wednesday, saying it would be 6,000 to 7,000 vehicles. .

Peter Rawlinson, CEO of Lucid, said “the extraordinary logistical and supply chain challenges we face” were to blame for the shortfall. Vehicle demand remains strong, he said, adding in a statement: “I remain confident that we will overcome these short-term challenges.”

The 679 deliveries in the second quarter compared to just 360 vehicles in the first. Lucid said in May that she was having trouble acquiring components. All automakers have suffered supply chain problems, but shortages of parts and raw materials have come at an especially bad time for Lucid and other startup automakers like Rivian. Vehicle manufacturing is difficult enough for a start-up without having to fight for a share of scarce commodities.

After its debut model, the Lucid Air, was named Motor Trend’s Car of the Year for 2022, the company was seen as a serious threat to Tesla due to the sedan’s range of more than 500 miles on a charge and its handsome styling. Lucid’s headquarters in Newark, California, is a short drive from the Tesla factory in Fremont, and Mr. Rawlinson is a former Tesla executive.

But investors have grown pessimistic about the ability of Lucid, Rivian and other electric car startups to grab significant market share. The least expensive Air starts at $87,400, while the top-end is $169,000, pitting it against established automakers like Mercedes-Benz, Audi and Porsche, which have started selling battery-powered luxury cars.

Traditional automakers were slow to develop electric cars that would resonate with consumers, but now their decades of experience and factory networks are proving to be a decisive advantage. Ford Motor said Wednesday that it sold 7,700 battery-powered vehicles in the United States in July, a 170 percent increase from a year earlier. Ford has sold 31,000 electric vehicles in the first seven months of the year.

The expanded incentives for electric car buyers that Congress is considering won’t help Lucid. Their sedans will not be eligible for a $7,500 federal electric vehicle tax credit because their models are too expensive. Under the Senate’s proposed energy and weather package, buyers can claim the credit only for sedans with a list price of $55,000 or less and for trucks, SUVs and pickups that sell for $80,000 or less.

Lucid’s stock price has fallen from a high of $55 in November to below $20 recently.

The company lost $220 million in the second quarter on sales of $97 million. That compares with a loss of $81 million in the first quarter of 2022 on sales of $58 million. Lucid said he had enough cash to “fund the company well into 2023.”

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