Workers were busy assembling second-generation R1 vehicles at Rivian’s electric auto manufacturing facility in Normal, Illinois, on June 21, 2024. Despite this activity, Rivian Automotive faced a setback as its shares plummeted by up to 8.9% during intraday trading on Friday. The drop came after the company reported fewer vehicle deliveries in the third quarter than analysts had anticipated and revised its annual production forecast for 2024 downward. Rivian attributed the reduced production target — from 57,000 units to a range of 47,000 to 49,000 — to a “production disruption due to a shortage of a shared component” necessary for its R1 vehicles and commercial vans.
This component shortage has intensified over recent weeks, prompting the company to adjust its annual production guidance. However, a positive jobs report aided Rivian shares to recover some of the lost ground, closing down by 3.2% at $10.44.
Rivian’s CEO, RJ Scaringe, had previously indicated challenges with certain suppliers during a Morgan Stanley investor conference, particularly involving their in-house motors. Despite these obstacles, Rivian continues to aim for low single-digit growth in deliveries compared to 2023, projecting between 50,500 to 52,000 vehicles.
In the third quarter, Rivian produced 13,157 vehicles but only delivered 10,018, falling short of the analyst expectations of 13,000 deliveries, as compiled by FactSet. The company’s shares have decreased by 56% in 2024, impacted by slower-than-expected EV demand and significant cash burn.
Original Story https://www.cnbc.com/2024/10/04/rivian-lowers-production-forecast-misses-q3-delivery-expectations.html
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