Lucid CEO Concerned About Chip Supplies From China Due To COVID-19

The chief executive of Lucid Group Inc on Wednesday expressed concern about chip supplies from China due to COVID-19 pandemic-related lockdowns, adding that the U.S. electric vehicle startup is taking measures to mitigate the impact.

"My biggest concern probably is semiconductors from China and the impact of COVID in that part of the world," Lucid CEO Peter Rawlinson said at a conference held by the Financial Times.

He said Lucid has distributed the location of chip supplies as part of mitigation measures.

China's "zero COVID" policy has placed hundreds of millions of people across dozens of cities under various degrees of movement restrictions, most dramatically in Shanghai, causing significant economic damage in China and beyond.

Factories in Shanghai that are trying to return to full swing have had their efforts complicated by authorities in the city tightening a lockdown to stamp out outbreaks of COVID-19.

Tesla's plant in Shanghai was running well below capacity earlier this week due to logistical and supply line issues.