Rivian Cuts Its Production Goal For 2024 – Here’s Why

The American EV startup is anticipating a 14-17% lower production number this year in comparison to 2023

Rivian is revising its production goal for 2024. While many might assume the recent slowdown in EV demand is the reason for this, there is more to it. The EV maker is blaming a supply shortage issue as the main reason for this occurrence. That is great news for Rivian fans because it informs that the R1S and R1T are still in demand. As per this latest announcement, Rivian now plans to build 47,000 to 49,000 vehicles this year in comparison to 57,000, which was its previous target.

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Rivian Cuts Production Goal For 2024

As per the official press release by Rivian, it is experiencing a production disruption due to a shortage of a shared component on the R1 and RCV platforms. While the impact of this incident commenced in Q3 this year, the situation has become more acute in recent weeks. What’s worse is that it is persisting at the moment. Furthermore, the company also claims that its delivery outlook will have single-digit growth compared to 2023. It expects to deliver 50,500 to 52,000 vehicles.

A Bloomberg report exposes another reason for the revised production goal. As per their sources close to the matter, this disruption was a consequence of a miscommunication between Rivian and its supplier, Essex Furukawa earlier this year. This firm makes magnate wires for most major OEMs. However, due to the confusion, Rivian doesn’t have enough copper windings to achieve its production target. As a result, this is impacting the manufacturing of R1T, R1S and electric delivery vans made for Amazon.

Moreover, the sources also said that Rivian “miscalculated” its supply needs and it would be too expensive to find a new supplier at such short notice. Rivian will announce its financial results for the third quarter on November 7, 2024. That will showcase the overall performance on the sales charts and financials along with updates regarding future products and technology.

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Learn Electric Cars Says

I believe it is quite a tricky situation when carmakers err like this and it affects their actual sales. This is particularly bad since the times for EV demand are challenging. Many carmakers are backtracking on their ambitious announcements regarding going fully electric. In fact, some of them are now reevaluating the feasibility of hybrid cars. In any case, let us keep an eye out for more details on November 7, 2024, with regard to Rivian.