Rivian tumbled over 12% in morning trading after it warned supply issues to hit 2021 production

Tiger Newspress2021-12-17

Rivian tumbled over 12% in morning trading after it warned supply issues to hit 2021 production.It highlighted the challenges it is likely to face in ramping up production to take on EV leader Tesla Inc.

Rivian also announced plans to build a $5 billion plant to ramp up capacity, while flagging production challenges even as it receives about 2,000 pre-orders every week.

"We don't want to read too much into near-term issues ... but it does highlight the risk that Rivian has a lot on its plate," RBC Capital Markets analyst Joseph Spak said.

The company expects production to fall "a few hundred vehicles short" of its 2021 target of 1,200 due to supply chain constraints.

Increasing production of R1T truck, R1S SUV and Amazon's delivery vans within a few months would be akin to "a really complex orchestra," Chief Executive Officer RJ Scaringe said.

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