Shares of Rivian Automotive fell by as much as 8.9% during Friday’s intraday trading after the electric vehicle startup reported lower-than-expected vehicle deliveries for the third quarter and revised its annual production forecast for 2024 downward.
Rivian stated that its updated production target, which has been reduced from 57,000 units to a range of 47,000 to 49,000, is due to a “production disruption caused by a shortage of a shared component” used in both its R1 vehicles and its commercial van.
“This supply shortage, which began impacting us in Q3, has worsened in recent weeks and remains ongoing. Consequently, Rivian is adjusting its annual production guidance to between 47,000 and 49,000 vehicles,” the company explained in a statement.
Despite the steep drop in shares, Rivian’s stock regained some losses, buoyed by a stronger-than-expected jobs report that boosted broader markets, ultimately closing down by 3.2%, at $10.44.
Last month, Rivian CEO RJ Scaringe touched on the challenges related to some of the company’s suppliers during a Morgan Stanley investor conference.
He acknowledged that there had been difficulties with several suppliers, especially concerning components for the company’s in-house motors, emphasizing the complexity of managing a multi-tiered supply chain.
Despite the supply chain issues, Rivian reaffirmed its delivery forecast for 2024, projecting low single-digit growth compared to 2023, with anticipated deliveries ranging from 50,500 to 52,000 vehicles.
The company revealed the component shortage while reporting its vehicle production and deliveries for the third quarter.
Between July and September, Rivian produced 13,157 vehicles at its manufacturing facility in Normal, Illinois, and delivered 10,018 units in that same period. Analyst expectations had forecasted deliveries of 13,000 vehicles for the quarter.
Rivian shares have declined by 56% in 2024, driven by slower-than-expected EV demand and the company’s high cash burn rate.
