Electric Vehicle Manufacturer Rivian Faces Production Hurdles, Slashes Annual Forecast
Rivian Automotive’s stock plummeted 8% in pre-market trading on Friday after the company announced a disappointing third-quarter vehicle delivery report and reduced its 2024 production target. The electric vehicle startup cited a shortage of a critical component for its R1 vehicles and commercial vans, which has been affecting production since the third quarter.
The company’s revised production guidance now stands between 47,000 and 49,000 vehicles, down from its initial target of 57,000 units. Rivian attributed the shortage to a supply chain issue, which has become more severe in recent weeks. While the company did not disclose further details, its CEO RJ Scaringe had previously mentioned supplier issues, including problems with in-house motors, at a Morgan Stanley investor conference.
Despite the production hurdles, Rivian reaffirmed its annual delivery outlook, expecting low single-digit growth compared to 2023, with a range of 50,500 to 52,000 vehicles. The company produced 13,157 vehicles at its Illinois manufacturing facility during the third quarter, delivering 10,018 vehicles during the same period. Analysts had expected deliveries of around 13,000 vehicles.
Rivian’s stock has taken a hit this year, plummeting over 50% as electric vehicle demand has been slower than anticipated, and the company has burned through a significant amount of cash. The production disruption has added to the company’s challenges, but Rivian remains committed to its growth targets.
Leave a Reply