Lucid Group reported a 6.7% year-over-year decline in third-quarter vehicle deliveries as the electric automaker cut output to match slower customer demand. The company delivered 3,806 electric vehicles and produced 2,954 units from July through September. That compares with 4,078 deliveries and 3,891 vehicles produced during the same period a year earlier.

The production slowdown marks the first phase of an operational reset under new Chief Executive Silvio Napoli, who took over in June. As part of the shift, Lucid reduced manufacturing at its Arizona plant from two daily shifts to one. The move is designed to bring output in line with current market conditions.

Lucid is targeting a broader financial turnaround that includes finding $1.4 billion in cash flow improvements this year. The company plans to save between $600 million and $800 million by trimming vehicle inventory, while cutting $500 million in capital spending and $200 million in operating costs. These targets were first outlined when the automaker reported second-quarter results in August.

Investor reaction remained muted following the delivery announcement. Lucid shares closed up less than 1% on Monday at $4.17 and showed little movement in after-hours trading. The stock has fallen more than 60% this year, even as year-to-date third-quarter deliveries have climbed 3.4% compared to last year. Production has also risen 33% through early this year, following a peak of nearly 7,900 units in the fourth quarter of last year and 5,500 units in the first quarter of this year.

The automaker, which receives substantial backing from Saudi Arabia's Public Investment Fund, will release its full third-quarter financial results on Nov. 9 after markets close.