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Rivian Automotive’s stock fell by around 4% in early trading on Friday after the company reported lower vehicle deliveries in the third quarter and revised its annual production forecast for 2024. Rivian cited a supply shortage of a shared component for its R1 vehicles and commercial van as the reason for the production disruption. The company now expects to produce between 47,000 and 49,000 vehicles for the year, down from the initial target of 57,000 units.
Rivian CEO RJ Scaringe mentioned challenges with suppliers, particularly related to the in-house motors, which have caused production issues. Despite the setback, Rivian reaffirmed its annual delivery outlook of low single-digit growth compared to 2023, with expectations of delivering between 50,500 to 52,000 vehicles for the year.
In the third quarter, Rivian produced 13,157 vehicles and delivered 10,018 vehicles, falling short of analyst estimates. The company’s stock has dropped by more than 50% in 2024, attributed to slower-than-expected EV demand and significant cash burn.
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Emily Jensen, graduated from the London School of Economics and Political Science (LSE) in the UK in 2015 with a degree in Economics. She specializes in financial markets and international trade. After graduating, she worked as an analyst at an investment bank in London, where she developed expertise in global economic trends. She later transitioned into consulting, focusing on fintech ventures and providing insights into global economic developments. Emily is passionate about the intersection of finance and technology and aims to drive innovation in the financial sector.
