Rivian’s Vehicle Output Takes a Hit as Supply Chain Issues Persist
Shares of Rivian Automotive, Inc. (NASDAQ:RIVN) are plummeting after the electric vehicle manufacturer revised its annual production forecast downward due to a shortage of critical components affecting its R1 and RCV platforms. Despite producing 13,157 vehicles at its Normal, Illinois facility and delivering 10,018 cars during the same period, the company is struggling to overcome supply chain disruptions that began in Q3 and have worsened in recent weeks.
In response, Rivian has adjusted its annual production guidance to 47,000-49,000 vehicles, down from its initial target of 57,000. However, the company remains committed to its delivery outlook, anticipating low single-digit growth in 2024 with expected deliveries ranging from 50,500 to 52,000 vehicles.
RIVN stock has taken a significant hit, plummeting over 54% in the past year. Investors seeking exposure to the stock can explore options such as the Renaissance IPO ETF (NYSE:IPO) and the First Trust NASDAQ Clean Edge Green Energy Index Fund (NASDAQ:QCLN).
Meanwhile, industry leader Tesla recently reported its Q3 production and delivery numbers, boasting a 6.4% year-over-year increase in deliveries and a 9.1% year-over-year jump in production.
As of Friday’s premarket trading, RIVN shares were down 8.16% to $9.90.
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