Lucid sinks 11% as the EV maker slashes production forecast to as low as 6,000 vehicles on supply chain disarray

• Lucid shares dropped Thursday after the luxury EV maker made another cut in its 2022 production target.
• It now sees making 6,000-7,000 vehicles, down from a previous forecast of 12,000-14,000.

Lucid dropped sharply Thursday after chopping down its 2022 production outlook while it tries to meet the demand for its electric vehicles.

"Our revised production guidance reflects the extraordinary supply chain and logistics challenges we encountered," Lucid CEO Peter Rawlinson said in a statement late Wednesday that accompanied second-quarter financial results.

Shares fell 11% as trading in Thursday's regular session got underway.

"Our revised production guidance reflects the extraordinary supply chain and logistics challenges we encountered," Lucid CEO Peter Rawlinson said in a statement accompanying second-quarter financial results.

The luxury EV startup reduced its production volume outlook for the year to a range of 6,000 to 7,000 vehicles. In February, it projected the production of 12,000 to 14,000 Lucid Air vehicles.

The company, whose Lucid Air sedan carries a starting price tag of $87, 400, said Wednesday it's continuing to see "strong demand" in logging more than 37,000 reservations. It delivered 679 vehicles in the second quarter ended June 30.

"We've identified the primary bottlenecks, and we are taking appropriate measures – bringing our logistics operations in-house, adding key hires to the executive team, and restructuring our logistics and manufacturing organization," said Rawlinson, adding that he's "confident" the company will overcome the "near-term challenges."

Lucid had initially set its 2022 production target at 20,000 but cited supply-chain and logistic problems as reasons it needed to scale back its outlook. The company missed its 2021 production target.

The company said Wednesday its current reservations represented potential sales of $3.5 billion. Its second-quarter deliveries resulted in $97.3 million in revenue, which was below the FactSet consensus estimate of $145 million.

Shares of Lucid this year have dropped by roughly 50%.