Workers assemble second-generation R1 vehicles at electric car maker Rivian's manufacturing facility in Normal, Illinois, U.S., June 21, 2024.
Joel Ángel Juárez | Reuters
Actions of Rivian Automotive 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 lowered its annual production forecast for 2024.
The company said the lower production target (from 57,000 units to between 47,000 and 49,000) was due to a “production disruption due to a shortage of a shared component” for its R1 vehicles and commercial van.
“This impact of the supply shortage began in the third quarter of this year, has worsened in recent weeks and continues. As a result of the supply shortage, Rivian is revising its annual production guidance to be between 47,000 and 49,000 vehicles “the company said in a statement.
Rivian shares, helped by an expectations-defying jobs report that buoyed markets, recouped some earlier losses to close down 3.2% at $10.44.
A Rivian spokesperson said the component causing the problem is part of its internal engines, but declined to reveal further details.
Rivian CEO RJ Scaringe, during a Morgan Stanley investor conference last month, alluded to issues with several vendors: “We've had a couple of vendor issues recently that have been challenging and, in particular, some issues around with our internal engines. with some of the components that have been painful and a reminder of how difficult a multi-tier supply chain can be.
Rivian, Tesla and GM Stock in 2024.
Despite the shortage, the company reaffirmed its annual delivery outlook for low single-digit growth compared to 2023, which it expects to be in a range of 50,500 to 52,000 vehicles.
Rivian disclosed the component shortage as part of its vehicle production and delivery report for the third quarter.
The company produced 13,157 vehicles at its manufacturing facility in Normal, Illinois, during the period ending Sept. 30 and delivered 10,018 vehicles in that time. Analyst estimates compiled by FactSet expected deliveries of 13,000 vehicles during the third quarter.
Rivian shares are down 56% in 2024 as demand for electric vehicles has been slower than expected and the company has burned through a significant amount of cash.
