Shares of Rivian Automotive, an electric vehicle start-up that went public through a blockbuster IPO last month, plummeted to a new low Friday after the company cut its 2021 vehicle production target.
Rivian said after the markets closed Thursday that it expected to fall “a few hundred vehicles short” of this year’s production target of 1,200 vehicles. The company said it faced supply chain issues as well as challenges ramping up production of the complex batteries that power the vehicles.
“Ramping up a production system like this, as I said before, is a really complex orchestra,” Rivian CEO R.J. Scaringe said. “We’re ramping largely as expected; the battery constraint is really an artifact of just bringing up a highly automated line, and, as I said, it doesn’t present any long-term challenges for us.”
Shares of Rivian were down 15% early Friday morning before recovering to end the week at $97.70 a share, down by 10.3% for the day. The intraday low of $92.62 a share as well as the closing price were new respective lows since Rivian began trading on Nov. 10. Shares of Rivian are now down by 3.4% since its IPO.