Rivian has announced a reduction in its electric vehicle production targets for 2024, attributing the change to ongoing supply chain issues that have impacted its manufacturing capabilities.
The company now expects to produce between 47,000 and 49,000 vehicles this year, down from an earlier forecast of 57,000 units. This adjustment reflects a significant decrease from its production level in 2023, where Rivian manufactured 57,232 vehicles and delivered 50,122.
The announcement coincided with Rivian’s report of its third-quarter production and delivery figures, which fell short of analysts’ expectations. During this period, Rivian produced 13,157 vehicles and delivered 10,018, compared to the projected 13,000 deliveries. The company cited a shortage of a shared component critical to its R1 and commercial van platforms as the main reason for the disruption, stating that the impact of this supply shortage began in the third quarter and has intensified in recent weeks.
In addition to the production cut, Rivian’s stock has experienced a decline of nearly 50% this year, reflecting broader challenges in the electric vehicle market, including rising interest rates, cooling consumer demand, and inconsistent charging infrastructure. Other major players in the industry, such as Tesla, have also reported missing quarterly delivery estimates, underscoring the tough environment for electric vehicle manufacturers.
Despite the setbacks, Rivian remains optimistic about its long-term strategy. The company plans to introduce a more affordable R2 model in 2026, followed by an even less expensive R3 model. Recently, Rivian established a joint venture with Volkswagen, which will see the German automaker invest $5 billion in exchange for access to Rivian’s software and EV platform.
Rivian’s commitment to a delivery outlook of low single-digit growth compared to 2023 remains unchanged, with expectations set between 50,500 and 52,000 vehicles. However, the recent production disruption highlights the complexities of the supply chain and its critical role in the company’s ability to meet market demand.
