Lucid Group Inc LCID chairman Peter Rawlinson looked at the company’s nearly 1,000 electric vehicles that have been produced but not yet delivered Third Quarter Results Phone call.

What happened: On Tuesday, Rawlinson who is also known for his work on Tesla Inc TSLA Model S addressed the reason these cars were put into storage.

“This is a function of the cadence that we booted with. We’ve made remarkable progress ramping up. And of course there will be a phase delay between the production of the cars and the delivery to our dear customers,” he said.

Clear CFO Sherry house said the company expects to produce vehicles at a higher volume pace.

“We are accelerating production, and we will also begin our international shipments in the fourth quarter, and that requires longer transit times.”

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Why it matters: Lucid reported record production of 2,282 vehicles in the third quarter, more than triple the prior quarter. Delivered Vehicles was 1,398 units in the period.

Rawlinson said the company has made “significant progress” to meet its 2022 production target of 6,000 to 7,000 vehicles.

Lucid reported third-quarter revenue of $195.5 million, falling short of an estimate of $209.1 million, according to Street Benzinga Pro data.

Price promotion: On Wednesday, Lucid shares fell 17% in the regular session to $11.21 and were up 0.6% in after-hours trading.

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