The stock price of electric vehicle (EV) startup Rivian took a hit Friday after the company announced a reduction in its 2024 production forecast and missed delivery targets for the third quarter.
The stock price fell about 8% in premarket trading. This drop comes after Rivian lowered its annual production target from the previously announced 57,000 units to a range of 47,000 to 49,000. The company attributed this revision to a “production disruption” caused by component shortages.
Rivian also didn't meet analysts' expectations for deliveries for the third quarter, delivering only about 10,000 vehicles versus the expected 13,000. This shortage highlights the current challenges faced by electric vehicle manufacturers, including supply chain issues.
The news raises concerns about Rivian's ability to ramp up production and meet future demand. Investors will be closely watching how the company addresses these challenges and navigates the competitive electric vehicle landscape.