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Key Takeaways
- Rivian missed quarterly delivery expectations and cut its 2024 production guidance as it faces a parts shortage.
- The EV maker said it has difficulty getting a component used in production of its R1S SUV and RCV commercial van.
- Rivian said the problem began in the third quarter and has become more acute in recent weeks.
Rivian Automotive (RIVN) shares sank Friday as the electric vehicle maker missed third-quarter delivery estimates and slashed its full-year production outlook because of difficulties in getting a part.
Rivian said it built 13,157 EVs in the quarter, and delivered 10,018. Analysts surveyed by Visible Alpha were looking for 12,08O deliveries. The company’s latest news extended a recent slide in a stock that has fallen from levels seen this summer following an investment from Volkswagen.
The company cut its 2024 production estimate because of a supply shortage of a component used to build its R1S SUV and RCV commercial van. It added that the issue began in the third quarter, and “has become more acute in recent weeks and continues.”
Rivian now anticipates it will manufacture 47,000 to 49,000 EVs this year, down from its previous forecast of 57,000. Visible Alpha estimates were for 54,910. The company reaffirmed its guidance for deliveries of a low-single-digit increase from 2023, putting it in a range of 50,500 to 52,000. The company is slated to report third-quarter financial results after the market’s close on Nov. 7.
Shares of Rivian Automotive have lost nearly half their value in 2024. The stock was recently down about 6%.
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