Rivian deliveries decline this year compared to 2023. The company is facing a supply chain issue that started in the third quarter and has worsened in recent weeks.

Rivian did not disclose which specific component is causing the problem. However, they mentioned it is a part of their R1 platform, which powers both their pickup truck and SUV, as well as the RCV commercial van. This component is located in the electric motors. As a result, Rivian now expects to produce only between 47,000 and 49,000 vehicles by the end of 2024. This is a significant reduction from their previous goal of 57,000 vehicles, which they were promoting just a few months ago in July.

The decline in Rivian deliveries is evident in their third-quarter performance. The company delivered only 10,018 vehicles in Q3, a drop from 13,970 vehicles delivered in Q2. Rivian did not explain why their deliveries fell, but they still believe they can meet their annual goal of delivering between 50,500 and 52,000 vehicles.

The timing of this situation is challenging for Rivian. The company aims to launch its lower-cost R2 SUV in 2026. However, Rivian has been facing flat growth expectations for 2024 compared to 2023. To cope with this, the company has initiated cost-saving measures. In February, they laid off 10% of their workforce and put plans for a new factory in Georgia on hold. They have also simplified the designs of their R1T pickup and R1S SUV to reduce losses on each sale.

Rivian’s recent struggles highlight the impact of supply chain challenges on its production and delivery goals. As Rivian deliveries decline, the company needs to address these issues swiftly to regain momentum and meet its future targets.

Overall, Rivian faces a tough road ahead as it navigates through component shortages and production hurdles. It is crucial for the company to resolve these issues to ensure that it can ramp up production and improve delivery numbers in the coming years.