Lucid cuts production forecast after $780 million net loss

Lucid Motors cut its production forecast to "over 10,000" this year from its previous estimate of 10,000 to 14,000 and posted a first-quarter net loss of $780 million as it burns through cash amid waning demand.

Despite the disappointing numbers, which sent its stock price down nearly 9 percent in extended trading, CEO Peter Rawlinson said the automaker is seeing success in raising brand awareness in an effort to find more buyers for its Air sedan, currently its only vehicle.

"We're seeing some early wins," Rawlinson said of the automaker's increased focus on marketing. "The number of test drives has nearly doubled in the first quarter from the fourth quarter of last year."

Rawlinson announced on the company's first-quarter earnings call Monday that Andrea Soriani is the new head of marketing for Lucid.

Soriani previously held marketing roles at TAG Heuer and Maserati of North America.

Rawlinson also explained why Lucid's production and delivery numbers have been so far below its original estimates in 2021, in response to an investor question presented on the call.

He said the shortfall is because of supply chain disruptions that no one could have foreseen, which limited production capacity. And more recently, he added, the automaker is suffering from higher interest rates and economic uncertainly that are negatively affecting demand.

"These are factors that are difficult to predict," Rawlinson said.