Key Takeaways
- Rivian halted production of Amazon electric vans because of a parts shortage.
- The EV maker said it expects to make up the missed production, and the problem doesn’t affect its RT1 pickup and RS1 SUV.
- Amazon has committed to purchasing 100,000 Rivian vans by 2030, and reported last month that 15,000 were on the road in the U.S. since 2022.
Rivian Automotive (RIVN) shares declined in intraday trading Friday after the electric vehicle (EV) maker halted production of vans for Amazon (AMZN) because of a parts shortage.Â
The problem apparently began earlier this month at Rivian’s plant in Normal, Ill. In an email to Investopedia, the company explained that it expects “to recover all missed production,” although no timeline was given. The statement added that the issue won’t affect production of its R1T pickup and R1S SUV.
The company did not identify which components were involved.Â
Amazon Has Ordered 100,000 Rivian Vans by 2030
Amazon, which held a 15% stake in Rivian of June 30 and is its biggest shareholder, has committed to purchasing 100,000 vans by 2030 as part of its climate pledge to be net-zero carbon emissions by 2040. Last month, Amazon reported that it had put 15,000 of the vans in operation across the U.S. since 2022.
Also last month, Rivian affirmed its full-year production estimate of 57,000 vehicles. In fiscal 2023, it produced 57,232 vehicles.
Shares of Rivian Automotive fell 4.2% to $13.18 as of 2:50 p.m. ET Friday. They are down about 44% this year.Â