Rivian lowers production forecast, falls short of third-quarter delivery forecast | Wilnesh News

shares Rivian Cars Shares of the electric vehicle startup fell about 4% in early trading on Friday after it delivered fewer vehicles in the third quarter than analysts expected and lowered its annual production forecast for 2024.

this company said The lower production target – from 57,000 to 47,000 to 49,000 – was due to “production disruptions due to a shortage of shared parts” for R1 vehicles and commercial vans.

“The impact of this supply shortage began in the third quarter of this year, has become more severe in recent weeks, and is continuing,” the company said. “Due to the supply shortage, Rivian is revising its annual production guidance to 47,000 to 49,000 vehicles.” “A statement.

A Rivian spokesman said the component causing the problem was part of its internal motor, but he declined to give any further details.

Rivian CEO RJ Scaringe mentioned some supplier issues at a Morgan Stanley investor conference last month: “We have had some supplier issues recently that have been challenging, particularly around some of our in-house motors. Questions about some of these components have been painful and a reminder of how difficult multi-tiered supply chains can be.

Despite the shortage, the company reiterated that annual deliveries are expected to grow by low single digits compared with 2023, with deliveries expected to be between 50,500 and 52,000 vehicles.

Rivian disclosed the parts shortage when it reported third-quarter vehicle production and deliveries.

In the period ended Sept. 30, the company produced 13,157 vehicles and delivered 10,018 vehicles at its manufacturing plant in Normal, Illinois. Analyst estimates compiled by FactSet expect 13,000 vehicles to be delivered in the third quarter.

Rivian shares are set to fall more than 50% in 2024 as demand for electric vehicles falls short of expectations and the company burns through a lot of cash.