Rivian Cuts Production Forecast Amid Supply Shortages
- Rivian has revised its 2024 production forecast to 47,000-49,000 vehicles due to a supply chain issue.
- In Q3 2023, the company produced 13,157 vehicles and delivered 10,018, which was below analyst expectations.
- The ongoing supply shortage and stock decline highlight the challenges Rivian faces in the competitive electric vehicle market.
In the United States, Rivian Automotive has announced a significant reduction in its production forecast for 2024, now expecting to manufacture between 47,000 and 49,000 electric vehicles, down from an earlier estimate of 57,000. This adjustment is attributed to a supply chain issue that emerged in the third quarter of 2023, specifically a shortage of a shared component affecting both the R1 and RCV platforms. The company reported producing 13,157 vehicles and delivering 10,018 in the third quarter, which fell short of analyst expectations. The supply shortage has intensified recently, impacting Rivian's ability to meet its production goals. The company has not disclosed the specific component causing the disruption but indicated that it is crucial for the electric motors used in their vehicles. This situation reflects broader challenges within the electric vehicle industry, which has been grappling with high interest rates and fluctuating demand. Despite the production setbacks, Rivian remains optimistic about its delivery targets, aiming for between 50,500 and 52,000 vehicles for the year. The company is also exploring cost-cutting measures to ensure its sustainability in a competitive market. Rivian's stock has seen a significant decline, dropping nearly 50% this year, highlighting investor concerns over its production capabilities. In response to these challenges, Rivian has formed a joint venture with Volkswagen, which will provide a $5 billion investment in exchange for access to Rivian's software and electric vehicle platform, potentially aiding in overcoming current production hurdles.