Rivian (RIVN) suspends EDV production due to parts shortage

Rivian (RIVN) has briefly paused Electrical Supply Van (EDV) manufacturing at its Regular, IL plant because of a components scarcity. An organization spokesperson confirmed the information on Friday as Rivian faces its newest hurdle.

Rivian pauses EDV manufacturing in Regular

Rivian builds electrical supply vans for its greatest investor, Amazon. The E-commerce large ordered 100,000 EDVs from Rivian in 2019.

The Rivian-branded supply vans started rolling out in July 2022, with over 13,500 on US streets two years later. Amazon has even launched Rivian EDVs in Europe. Final yr, Amazon accounted for almost a fifth of Rivian’s income alone.

Nevertheless, the EV maker hit one other hurdle because it scales manufacturing in Regular. In keeping with Reuters, Rivian has paused EDV manufacturing due to a components scarcity.

“A component scarcity has briefly impacted our Electrical Supply Van (EDV) manufacturing,” an organization spokesperson mentioned in an e-mail on Friday. The spokesperson added, “We anticipate to recuperate all missed manufacturing.

Rivian’s spokesperson defined that the components scarcity wouldn’t have an effect on R1S and R1T manufacturing. The setback comes at a crucial time as Rivian ramps manufacturing following plant upgrades in April.

A pivotal time for a components scarcity

CEO RJ Scaringe mentioned on the corporate’s Q2 earnings name that the plant retooling was a “pivotal operation occasion” for Rivian. Scaringe defined the upgrades lower 35% of the price of supplies for its EDVs.

In the meantime, Rivian constructed simply 9,612 automobiles within the second quarter with the plant shutdown. That’s down from 17,500 in This autumn 2023 and 13,980 within the first quarter of 2024.

Rivian’s deliveries had been about flat from Q1, with 13,790 automobiles handed over within the second quarter. Following the upgrades, Rivian expects to enhance manufacturing and value effectivity.

Rivian mentioned the adjustments allow a 30% extra environment friendly R1 manufacturing line charge, which is anticipated to assist ramp output within the second half of the yr.

The EV maker stays on observe to construct 57,000 automobiles this yr. With 23,592 constructed within the first half of the yr, Rivian might want to produce one other 33,408 EVs to hit its objective.

Rivian continues introducing new tech, like its new Ascend Tri dive unit, which cuts the whole value by 32% in comparison with the Origin Quad.

As soon as Rivian begins constructing its smaller, more affordable R2 in early 2026, plant output is anticipated to achieve round 215,000 throughout R1T, R1S, EDV, RCV, and R2. That’s up from round round 150,000 at present.