Rivian $RIVN has lowered its production forecast for the year to 47,000-49,000 vehicles, down from the earlier estimate. This change is due to a shortage of parts affecting its R1 and RCV platforms. The issue began in the third quarter and has worsened since then. Despite this, Rivian still plans to deliver 50,500-52,000 vehicles this year, which would be a slight increase compared to 2023.
In the third quarter, Rivian produced 13,157 vehicles and delivered 10,018 of them.
Because of the parts shortage impacting the R1 and RCV platforms, Rivian has reduced its full-year 2024 production goal to 47,000-49,000 vehicles, down from the previous target of 57,000.
However, Rivian has confirmed it will still meet its delivery target of 50,500-52,000 vehicles, expecting small growth compared to last year.
Rivian’s shares fell over 8% in premarket trading on Friday after the company lowered its production forecast for the year. They also announced a major delay in their production plans because of a shortage of a shared part that is used in both their R1 and RCV vehicle models.
The latest forecast shows that the company expects to produce fewer vehicles this year compared to last year. This is because there has been a drop in demand for electric vehicles. Many consumers are looking for cheaper options due to high interest rates and rising inflation.
Morgan Stanley has changed its outlook for the U.S. auto industry from “Attractive” to “In-Line.” They pointed out several problems the industry is facing, such as too many cars in stock, worries about how affordable cars are, and stronger competition from China.
Morgan Stanley has also lowered its target price for the $RIVN stock from $16 to $13 per share.
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