Rivian announces that it will produce fewer electric vehicles this year compared to 2023.

Rivian announced that it will produce fewer electric vehicles this year compared to 2023, attributing this reduction to a shortage of parts. The company shared its production and delivery figures for the third quarter, which were below analysts' expectations. According to Rivian, vehicle production is expected to reach between 47,000 and 49,000 units this year, a decrease from the initial projection of 57,000 vehicles. This latter number remained steady compared to the previous year when the company manufactured 57,232 vehicles and delivered 50,122.

The interruption in production is due to "a shortage of a common component on the R1 and RCV platforms," referring to the R1T and R1S vehicles, as well as its commercial van platform. The company added that "the impact of this supply shortage began in the third quarter of this year, has worsened in recent weeks, and persists."

This is just the latest of several challenges facing the nascent electric vehicle industry, which has recently encountered difficulties due to high interest rates, cooling demand, and unreliable charging infrastructure. Tesla, the leading market competitor, also reported quarterly deliveries below estimates earlier this week. As for Rivian's shares, they have fallen nearly 50 percent this year and decreased by 10 percent in pre-market trading.

During the third quarter, Rivian produced 13,157 vehicles and delivered 10,018, compared to estimates of 12,078 made by 15 surveyed analysts. Reducing costs will be essential for Rivian's survival. The company plans to launch a more affordable model, the R2, in 2026, followed by an even more affordable vehicle, the R3. Additionally, Rivian has established a joint venture with Volkswagen, which will allow the automotive giant access to its software and electric vehicle platform in exchange for a $5 billion investment in Rivian.