May 17, 2022

ptemplates

Born to play

Lucid eyes price increases for future models, will honor prices for existing reservations -CEO

AUSTIN, Texas (Reuters) – Electric powered carmaker Lucid is hunting into raising charges for potential products amid “massive inflationary pressures,” but is dedicated to honoring price ranges for present reservation holders, its chief govt on Thursday.

“There’s an inevitability that we will have to glimpse at the selling price details of styles that are coming out in the potential,” CEO Peter Rawlinson reported in an job interview with Reuters on the sidelines of the South by Southwest songs, technology and film festival (SXSW).

“I think it would be completely foolish of me to say we are hardly ever going to increase our prices,” Rawlinson included, citing substantial nickel charges.

His reviews come as quite a few electric vehicle makers, which include Tesla Inc, Rivian and BYD, have lifted prices on bigger raw materials charges.

Lucid in late February reduce its creation forecast for this yr to a selection of 12,000 to 14,000, down from its authentic concentrate on of 20,000 automobiles, citing “remarkable source chain and logistics difficulties.” Its shares slid next the announcement.

Rawlinson on Thursday claimed the bottlenecks ended up brought about by suppliers for windshield glass, carpeting and some exterior trim areas.

“It’s about a handful suppliers that are gating our quantity,” Rawlinson said. “I am super discouraged simply because we’re not gated by silicon chips, we’re not gated by our skill to make electric powered motors.”

Switching to distinct suppliers for individuals areas would compromise good quality, Rawlinson reported.

Rawlinson, who formerly was vice president of car or truck engineering at Tesla, claimed he was not involved about short-time period industry reactions to Lucid’s manufacturing cuts.

“Buyer pleasure and recognition of the quality trumps quick-expression myopic awareness to how many cars we have shipped to buyers in a quarter,” Rawlinson said, incorporating that he was functioning on a 10-yr plan.

(Reporting by Tina Bellon Editing by Leslie Adler)