Rivian (RIVN.O) has temporarily halted production of its commercial delivery vans for Amazon.com (AMZN.O) due to a part shortage, a spokesperson for the electric vehicle manufacturer confirmed on Friday. Shares of the company, based in Irvine, California, fell 4% following the announcement.
This production pause adds to a string of supply chain difficulties that Rivian, like other EV makers, has faced over the past two years. These challenges stem from supplier shortages that have significantly impacted production capabilities.
“A part shortage has temporarily impacted our Electric Delivery Van (EDV) production. We expect to recover all missed production,” the spokesperson said in an emailed statement. The company did not specify the part or the supplier involved, nor did it comment on the start or resumption of the production stoppage.
Rivian currently manufactures all its vehicles at its factory in Normal, Illinois, with a second assembly plant planned in Georgia. Importantly, the part shortage does not affect the production of other Rivian vehicles, including its R1S SUV and R1T pickup models.
Amazon, Rivian’s largest investor with a 16% stake, has ordered 100,000 electric delivery vans to be deployed by 2030. The e-commerce giant stated it’s aware of Rivian’s “short-term production issues this month”, but doesn’t anticipate an impact on its plans. Last year, sales to Amazon comprised about 19% of Rivian’s revenue.
Earlier in August, Rivian reiterated its production forecast, stating that deliveries would be slightly lower in the current quarter after a factory shutdown in April for retooling and modifications.
