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

While it tries to meet the demand for its electric vehicles, Lucid dropped sharply.

"Our revised production guidance reflects the extraordinary supply chain and logistical challenges we encountered," Peter Rawlinson said in a statement.

The shares fell as trading began.

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

The production volume for the year was reduced to between 6,000 and 7,000 vehicles. In February, it predicted the production of 12,000 to 14 thousand vehicles.

The company said Wednesday that it's still seeing strong demand in logging more than 37,000 reservations. In the second quarter, it delivered 699 vehicles.

"We've identified the primary bottlenecks, and we are taking appropriate measures, including bringing our logistics operations in-house, adding key hires to the executive team, and restructuring our logistics and manufacturing organization," said Rawlinson.

The production target was initially set at 20,000 but due to supply-chain and logistical problems, it was scaled back to 20,000. The company didn't meet its production target.

According to the company, its current reservations represent potential sales of over $3 billion. The company's second-quarter revenue was below the consensus estimate of $145 million.

The shares of Lucid have plummeted this year.