Joel Angel Juarez | Reuters
Rivian Lowers 2024 Production Forecast Amid Supply Chain Disruption
Shares of Rivian Automotive fell by about 8% in premarket trading on Friday, following the electric vehicle maker’s announcement of a reduced production forecast for 2024. The company cut its production target from 57,000 vehicles to a range of 47,000 to 49,000 due to a “production disruption.”
Rivian cited a shortage of a shared component used in its R1 vehicles and commercial vans as the cause of the issue. This supply disruption began in the third quarter and has worsened in recent weeks, prompting the company to lower its annual production guidance.
In the third quarter, Rivian produced 13,157 vehicles at its Normal, Illinois manufacturing plant and delivered 10,018 vehicles—falling short of analysts’ expectations.
A Rivian spokesperson confirmed that the supply issue involves components within its in-house motors but declined to provide further details. CEO RJ Scaringe, during a recent Morgan Stanley investor conference, mentioned ongoing challenges with several suppliers, particularly related to parts for in-house motors. Scaringe noted the complexities of managing a multi-tiered supply chain, emphasizing the difficulties such disruptions pose for production.