Workers assemble second-generation R1 cars at Rivian's electric vehicle manufacturing facility in Normal, Illinois, US on June 21, 2024.
Joel Angel Juarez | Reuters
shares Rivian Cars It fell as much as 8.9% in intraday trading on Friday after the electric vehicle startup delivered fewer vehicles in the third quarter than analysts expected and cut its 2024 annual production forecast.
The company said the lower production target — from 57,000 units to between 47,000 and 49,000 — was due to “production disruption due to a common component shortage” for its R1 vehicles and commercial truck.
The company said in a statement: “The impact of this supply shortage began in the third quarter of this year, has become more severe in recent weeks and is still ongoing. As a result of the supply shortage, Rivian is reviewing its annual production guidance to be between 47,000 and 49,000 vehicles.” statement.
Rivian shares, helped by an forecast-defying jobs report that boosted markets, recovered some of earlier losses to close down 3.2% to $10.44.
A Rivian spokesperson said the component causing the problem was part of its internal engines, but declined to reveal any other details.
Rivian CEO RJ Scaringe alluded during a Morgan Stanley investor conference last month to issues with a number of suppliers: “We've recently had some supplier issues that have been challenging and, in particular, some issues with our internal engines with some components that have been painful and a reminder How difficult is the multi-tier supply chain.”
Rivian, Tesla, and GM stock in 2024.
Despite the shortage, the company reiterated its annual delivery forecast for low-single-digit growth compared to 2023, which it expects to be between 50,500 and 52,000 vehicles.
Rivian disclosed the component shortages as part of its third-quarter vehicle production and delivery reporting.
The company produced 13,157 vehicles at its manufacturing facility in Normal, Illinois, during the period ending September 30, and delivered 10,018 vehicles in that time. Analyst estimates compiled by FactSet expect 13,000 vehicles to be delivered during the third quarter.
Rivian shares fell 56% in 2024, as demand for electric vehicles was slower than expected and the company burned through a significant amount of cash.
