AMP-1 expansion and customer experience center

[Pwmac]

I saw this article about amp-1 expansion but what really caught my eye was this comment about the customer experience center what that may involve.

Lucid Motors to expand Arizona production plant - TESLARATI

Lucid Group is preparing to expand its AMP-1 production plant with Phase 3, starting in 2023, documents show.

www.teslarati.com

 

[HC_79]

Clearly something is going on that's not announced to warrant that rapid expansion of a plant into 2024\2025. 400,000 vehicles a year when they only have reservations for 37,000 today??? It's also interesting that with the current scale back of deliveries that Lucid isn't slowing down on its factory expansion which will take considerable cash. The Saudi plant will do something like 150,000 a year also. Lucid must think whatever vehicle they have coming in 2025 is going to sell like hotcakes because they're not going to be selling 400,000 Air's and Gravity's a year.

Tesla is just shy of 2 million produced in what? 11 years and somehow Lucid feels it needs a factory to produce 400,000 a year so early into its production life. It simply doesn't make sense.

 

[hydbob]

The SA factory will serve Europe. I expect for a while that the AZ factory will provide vehicles for the Asian market as well no?

 

[victoryroad]

Good to know that the company is planning for much higher production, which implies that its SA interest plans to inject significant cash next year. How does its board reconcile its significant build and delivery problems this year with ambitious capacity additions? More transparency from management would be helpful. Equity and debt markets may accommodate stock and bond issuance in the next year or so, albeit it likely at higher interest rates on bonds despite the recent narrowing of credit spreads, but investors need reliable guidance. No question that EV demand, in general, will increase, especially with lower-cost offerings, but Lucid will have to start delivering and give reliable guidance to investors on its delivery estimates. Obviously, it must also correct its manufacturing quality and the pace of production soon. It is interesting to note that the stock price held rather well after the recent earnings call, despite a ~10% initial decline.

 

[OCDC]

They may be trying to catch this coming wave:

Chasing green goals, corporations push car fleet managers toward EVs

Large corporations are jumping on the "green" bandwagon left and right, which in turn is pushing firms that lease and manage car fleets to convert to electric vehicles (EVs) faster than they had ever thought possible.

www.reuters.com