Electric vehicle startup Rivian expects to build several thousand fewer vehicles than its stated 2024 goal due to a “production disruption” affecting its manufacturing efforts.
The California-based automaker said Friday it is lowering its yearlong production goal to between 47,000 and 49,000 EVs at its Illinois factory. The goal was previously 57,000 vehicles, which would have roughly matched the start-up’s manufacturing figures from 2023.
Rivian, which delayed construction of a $5 billion manufacturing facility in Georgia earlier this year, said in a news release that the production disruption is due to a shortage of a component used in all of its existing vehicles — its flagship R1 line and electric vans. CNBC reported the component is part of Rivian’s in-house motors, but a company spokesperson declined to disclose further details.
“This supply shortage impact began in Q3 of this year, has become more acute in recent weeks and continues,” the release said.
Rivian produced 13,157 vehicles during the three months ended in September, a 19% decrease from the third quarter of last year. It was, however, a 37% increase from this year’s second quarter when manufacturing was depressed by a series of cost-cutting measures and technology improvements incorporated into its Illinois assembly lines.
The Illinois factory has a production capacity of 150,000 vehicles, nearly triple its current output. In March, the company indefinitely delayed construction of a new manufacturing plant an hour east of Atlanta, and its executives said they would resume the factory plans after the successful launch of a new cheaper crossover SUV.
While production increased in the third quarter compared with the prior quarter, the company delivered fewer vehicles to customers. Rivian delivered 10,018 vehicles during the three-month stretch, a 36% decrease from last year’s third quarter and a 27% decrease from the prior quarter. It’s the fewest deliveries since the beginning of 2023.
Deliveries peaked in the third quarter of 2023, which came just before EV manufacturers — namely Tesla — saw multiple quarters of slowing demand. While overall EV sales have continued to increase, they have not met industry expectations and there are more competitors manufacturing EVs, prompting some automakers to slow down their EV transition plans.
Rivian said it will release its third quarter financial results Nov. 7 before holding a call with investors. By 10 a.m., the company’s stock had decreased about 7% to $10 per share.
Cox Enterprises, which owns The Atlanta Journal-Constitution, also owns about a 3% stake in Rivian.
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