Workers assemble second-generation R1 vehicles at electric vehicle manufacturer Rivian’s manufacturing facility in Normal, Illinois, U.S., June 21, 2024.
Joel Angel Juarez | Reuters
shares of Rivian Automotive Shares 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 annual production forecast for 2024.
The company said the downward revision of its production target (from 57,000 units to between 47,000 and 49,000 units) was due to “production interruptions due to lack of common parts” for R1 cars and commercial vans. said.
“The impact of this supply shortage began in the third quarter of this year, became more severe in recent weeks, and continues today. As a result of the supply shortage, Rivian has revised its annual production guidance from 47,000 to 49,000 units. “We plan to revise the number to 1,000 units,” the company said. statement.
Rivian shares recovered earlier losses to close 3.2% lower at $10.44, helped by disappointing jobs data that boosted the market.
A Rivian spokesperson said the part causing the problem is part of an in-house motor, but declined to provide further details.
Rivian CEO RJ Scaringe alluded to issues with a number of suppliers at Morgan Stanley’s investor conference last month, saying: Some of the components were painful and served as a reminder of how difficult multi-tier supply chains can be. ”
Rivian, Tesla, GM stock prices in 2024.
Despite the shortfall, the company reaffirmed its forecast for annual vehicle deliveries, which are expected to increase by low single digits compared to 2023, to be in the range of 50,500 to 52,000 vehicles.
Rivian disclosed the parts shortage as part of its third quarter vehicle production and delivery report.
The company produced 13,157 vehicles at its Normal, Illinois manufacturing facility during the period ending September 30, and delivered 18,018 vehicles during that period. Analysts polled by FactSet predict deliveries of 13,000 vehicles in the third quarter.
Rivian stock will fall 56% in 2024 as EV demand is weaker than expected and the company burns through large amounts of cash.