Rivian announced that it will release fewer electric vehicles this year than in 2023. The company cited a shortage of spare parts as the reason for the decline in production volumes. The announcement came after the automaker reported third-quarter production and delivery figures that were below analysts’ expectations.
Image source: Rivian
According to the new forecast, this year Rivian will produce from 47 thousand to 49 thousand electric vehicles, which is significantly lower than the previously predicted 57 thousand cars. Last year, 57,232 Rivian electric vehicles rolled off the production line, with deliveries totaling 50,122 vehicles.
The company said the drop in deliveries was due to a “shortage of common components across the R1 and RCV platforms,” referring to the R1T and R1S electric vehicles, as well as the electric commercial van platform. “The impact of supply shortages began in the third quarter of this year, has become more acute in recent weeks and continues to have an impact,” a company spokesperson said.
The electric vehicle industry has been hit hard in recent months by high interest rates, declining consumer demand and unreliable charging infrastructure. Tesla remains the dominant player here, but it also failed to meet its quarterly delivery forecast.
As for Rivian, the company’s shares have lost almost 50% in value over the course of the year. In the third quarter, the company produced 13,157 electric vehicles and delivered 10,018 vehicles to the market. Reducing costs is critical to Rivian’s continued survival. The company plans to release a more affordable R2 electric car in 2026, followed by an even more affordable R3. Not long ago, Rivian created a joint venture with Volkswagen, under which the German auto giant will gain access to Rivian’s software and electric vehicle platform, and in return will invest $5 billion in the American manufacturer.