AUSTIN, Texas, March 17 (Reuters) – Electrical carmaker Lucid (LCID.O) is wanting into elevating costs for future fashions, its chief govt stated on Thursday, citing “big inflationary pressures” however stated the corporate was dedicated to honoring costs for present reservation holders.
“There’s an inevitability that we should take a look at the value factors of fashions which can be popping out sooner or later,” CEO Peter Rawlinson informed Reuters, citing hovering nickel costs after Russia invaded Ukraine.
“I believe it will be completely silly of me to say we’re by no means going to lift our costs,” Rawlinson stated within the interview on the sidelines of the South by Southwest music, expertise and movie pageant (SXSW).
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“What we need to do is to honor and hold our commitments to present reservation holders. I believe that is what was sick obtained available in the market with Rivian.”
He was referring to this month’s resolution by electrical truck maker Rivian to hike costs on present reservations after which reverse course after shoppers protested. learn extra
Tesla Inc (TSLA.O)has lately raised automobile costs in the USA and China after CEO Elon Musk stated the largest electrical carmaker faces important inflationary strain in uncooked supplies and logistics. learn extra
Lucid in February lower its manufacturing forecast for this yr to a spread of 12,000 to 14,000, from its unique goal of 20,000 automobiles, citing “extraordinary provide chain and logistics challenges.” Its shares slid after that announcement. learn extra
Rawlinson on Thursday stated the bottlenecks have been brought on by a handful of suppliers for windshield glass, carpeting and a few exterior trim components.
“I am tremendous pissed off as a result of we’re not gated by silicon chips, we’re not gated by our means to make electrical motors,” Rawlinson stated.
Switching to totally different suppliers for these components would compromise high quality, he stated.
He questioned whether or not Rivian would have the ability to make a revenue on its pickup vans with out elevating costs, given the prices of battery packs.
“I do not suppose even we might, with the very best expertise on the earth, make an reasonably priced, sensible pickup,” he stated.
Tesla, which is creating its personal electrical pickup, faces a “major problem” in making it reasonably priced, CEO Elon Musk stated this month. “If this can be very laborious to take action for Tesla, regardless of our a lot higher economies of scale & higher expertise, then it’s rattling close to unattainable for others,” Musk stated.
Rivian was not instantly out there for remark.
Rawlinson additionally stated Lucid has began on a prototype of in-house battery cell manufacturing, including that it additionally has partnerships with battery suppliers Samsung SDI (006400.KS) and LG Vitality Options.
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Reporting by Tina Bellon and Hyunjoo Jin; Modifying by Leslie Adler and David Gregorio
