The electric vehicle maker said on Friday that Rivian has temporarily halted production of its commercial delivery vehicles used by retail giant Amazon due to a parts shortage. Shares of the company from California fell by 1.7 percent in pre-sale.
Reuters reports that the production halt is the latest in a series of supply chain challenges for Rivian, which, like other electric vehicle makers, has faced significant production problems over the past two years due to parts shortages.
Amazon, Rivian’s largest investor with a 16 percent stake, has ordered 100,000 electric delivery vehicles to be delivered by 2030. Last year, sales to Amazon accounted for about 19 percent of Rivian’s revenue.
“The lack of a part temporarily affected our production of electric delivery vehicles. We expect to make up for all missed production,” Rivian announced. The company did not disclose information about the specific part and supplier, nor did it comment on when the production suspension began and whether it continued.
This parts shortage will not affect the production of other Rivian vehicles, including the R1S SUV and the R1T pickup. Earlier this month, Rivian maintained its production forecast and said shipments would be slightly lower in the current quarter after it shut down its factory in April for rework and modifications.
Earlier this year, it was announced that Germany’s Volkswagen would invest up to $5 billion in Rivian as part of a new, equally controlled joint venture to integrate components and software for EVs, sending the American electric car maker’s stock up 50 percent.
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