Welcome to Extreme Investor Network, your go-to source for in-depth analysis and insights into the latest business news and trends. Today, we’re taking a closer look at the recent developments at electric auto maker Rivian Automotive.
Shares of Rivian dropped about 4% in early trading Friday after the company reported that it delivered fewer vehicles in the third quarter than analysts had expected and lowered its annual production forecast for 2024. The company cited a “production disruption due to a shortage of a shared component” for its R1 vehicles and commercial van as the reason for the lower production target.
Rivian CEO RJ Scaringe mentioned challenges with suppliers during a recent investor conference, emphasizing the difficulties that can arise from a multi-tiered supply chain. Despite the shortage, the company reaffirmed its annual delivery outlook and expects to deliver between 50,500 to 52,000 vehicles in 2024.
In the third quarter, Rivian produced 13,157 vehicles and delivered 10,018 vehicles at its manufacturing facility in Normal, Illinois. This fell short of analyst expectations, contributing to the decline in Rivian’s stock price, which has dropped by more than 50% in 2024.
It’s important to note that the EV industry has faced challenges this year, with slower-than-expected demand and companies like Rivian burning through cash. These factors have contributed to the volatile nature of the market and investors should stay informed on the latest developments in the sector.
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