Rivian said it would make fewer electric vehicles this year than it did in 2023, resulting from a parts shortage. The news came as the company reported third quarter production and delivery numbers that came in below analyst expectations.
Rivian says it expects to produce between 47,000 and 49,000 vehicles this year, down from the 57,000 vehicles it originally forecast. That number was flat from the previous year, when the company produced 57,232 vehicles and delivered 50,122.
Rivian said the disruption is due to “a shortage of a shared component on the R1 and RCV platforms,” referencing the company’s R1T and R1S vehicles, as well as its commercial van platform. “This supply shortage impact began in Q3 of this year, has become more acute in recent weeks and continues,” the company added.
It was the latest piece of grim news to hit the nascent EV industry, which has suffered in recent months from high interest rates, cooling demand, and an unreliable charging infrastructure. Tesla, still the dominant player, also missed quarterly delivery estimates earlier this week. Rivian’s stock has slipped nearly 50 percent this year and was down 10 percent in premarket trading.
Rivian said it produced 13,157 vehicles during the third quarter and delivered 10,018 vehicles during the same period. That’s compared to estimates of 12,078, according to 15 analysts polled by Visible Alpha, as reported by Reuters.
Lowering costs will be crucial to Rivian’s survival. The company has plans to introduce a lower-cost R2 model in 2026, followed by an even more affordable R3 vehicle. Rivian recently formed a joint venture with Volkswagen that will give the German auto giant access to its software and EV platform. In exchange, VW will invest $5 billion in Rivian.
(Originally posted by Andrew J. Hawkins)