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Rivian Automotive (RIVN) experienced a dip in share value during intraday trading on Friday following the temporary halt of production for electric vans destined for Amazon (AMZN). The pause, attributed to a parts shortage, reportedly began earlier this month at Rivian’s Normal, Illinois, plant.
In a statement provided to Investopedia, Rivian indicated that it expects “to recover all missed production,” although no specific timeline was provided. The company also noted that the issue would not affect production of its R1T pickup or R1S SUV. Rivian did not disclose which components were in short supply.
Amazon, which held a 15% stake in Rivian as of June 30 and remains its largest shareholder, has committed to acquiring 100,000 vans by 2030. This purchase is part of Amazon’s broader climate pledge to achieve net-zero carbon emissions by 2040. Last month, Amazon reported that it had deployed 15,000 of these vans across the United States since 2022.
Despite the production halt for the Amazon vans, Rivian reaffirmed its full-year production estimate of 57,000 vehicles last month. In fiscal year 2023, the company produced 57,232 vehicles.
As of 2:50 p.m. ET on Friday, shares of Rivian Automotive were down 4.2%, trading at $13.18. The stock has decreased approximately 44% this year.
Article Sources
- Securities and Exchange Commission. “FORM 10-Q.”
- Amazon. “Amazon is committed to decarbonizing its delivery fleet and has rolled out more than 15,000 custom electric delivery vans across the U.S.”
- Rivian Automotive. “Rivian Releases Q2 Production Figures and Sets Date for Second Quarter 2024 Results.”
- Rivian. “Rivian Releases Fourth Quarter and Full Year 2023 Financial Results.”
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