Elon Musk makes light of Lucid’s Q2 vehicle production results

Lucid Motors seems to be learning firsthand how difficult it is to mass-produce all-electric vehicles. It turns out that achieving excellent automotive production results is easier said than done. This is something that Tesla CEO Elon Musk seems to want to emphasize.

In the second quarter, Lucid Motors reported that it had delivered just 679 cars. The company also decided to lower its annual production forecast from 12,000-14,000 units to just 6,000-7,000 vehicles – and that’s if the electric vehicle manufacturer successfully ramps up production of the Lucid Air in the second half of the year. For context, the company shipped 360 Air sedans to customers in the first quarter of 2022.

Elon Musk poked fun at the Tesla competitor, joking that he “had more kids in Q2 than they made (Lucid) cars.” Musk responded to a tweet from Tesla Bull and The Future Fund Managing Partner Gary Black, who noted that Lucid’s results are proof that Musk is right in his belief that manufacturing is a difficult undertaking.

While Musk’s comments may seem like the CEO is bullying a smaller competitor that’s just getting started, Lucid is actually one of Tesla’s rivals that tends to cast some shadow on the Texas-based electric vehicle manufacturer. A number of Lucid executives, including CEO Peter Rawlinson, previously worked at Tesla.

In early 2021, Rawlinson and VP of Manufacturing Peter Hochholdinger — also a former Tesla employee — stated that Lucid would do what it could to avoid the “production hell” that Elon Musk usually talks about. Musk has referred to the production hell in the Model 3 disaster as one of the most stressful and darkest periods of his career.

Speak with axiosLucid CEO Peter Rawlinson noted that Tesla may have just been ill-prepared to build quality cars en masse when it implemented the Model 3 ramp. “Why brag about something you didn’t do so well,” Rawlinson said. “Production hell means you didn’t plan well,” Hochholding also noted.

Both the CEO and VP of Manufacturing then hinted that Lucid approaches production like a game of chess, with many pieces moving and one move dependent on the next. This was one of the reasons Lucid built its factory in Casa Grande, Arizona, in stages. “We don’t want to spend $1 billion on a 400,000 unit factory and lock in all that capital,” Rawlinson noted at the time.

Since then, Lucid has faced a series of challenges in his efforts to jack up his first vehicle. These challenges are suggested by the company’s progressively conservative production outlook, from 20,000 vehicles to 12,000-14,000 and now to 6,000-7,000 units.

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Elon Musk sheds light on Lucid’s Q2 vehicle production results






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