Rivian Reduces Electric Vehicle Production Forecast for 2024

Rivian's Revised Production Forecast

Rivian has disclosed that it will be manufacturing fewer electric vehicles in the upcoming year due to a severe parts shortage. This announcement comes amid the release of third quarter production and delivery figures that fell short of analyst predictions.

2024 Production Numbers

The automaker projects a production total of between 47,000 and 49,000 vehicles for 2024, a sharp decline from the initially expected 57,000 units. The previous year saw a production of 57,232 vehicles along with 50,122 deliveries.

Reasons Behind the Shortage

• Rivian cites a key component shortage impacting both the R1 and RCV platforms.
• This disruption began in the third quarter and has worsened.

Challenges in the EV Industry

The news adds to the difficult landscape facing the electric vehicle industry currently grappling with high interest rates, declining demand, and unreliable charging infrastructure. In a similar vein, Tesla has also reported missing its quarterly delivery targets.

Stock Performance and Interest in Future Models

Rivian's stock has plummeted nearly 50% year-to-date, falling an additional 10% in premarket trading. In light of these challenges, cost reduction efforts will be critical for Rivian's long-term viability, with plans to release a lower-cost R2 model by 2026.

Strategic Partnerships

In a move to bolster its capabilities, Rivian has established a joint venture with Volkswagen, which will see VW invest $5 billion in Rivian in exchange for access to its software and EV platform.