Rivian Gross sales Slammed By Provide Scarcity – CleanTechnica – TechnoNews

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Rivian reported its third quarter gross sales at the moment, and so they weren’t good. Extra particularly, deliveries had been all the way down to 10,018 models in Q3 2024, from 15,564 in Q3 2023 (YoY) and 13,790 in Q2 2024 (QoQ). Although, in accordance with Rivian, the problem will not be shopper demand. A minimum of, shopper demand for its EVs was not talked about. The difficulty Rivian highlighted was a provide chain drawback.

“Rivian is experiencing a production disruption due to a shortage of a shared component on the R1 and RCV platforms. This supply shortage impact began in Q3 of this year, has become more acute in recent weeks and continues. As a result of the supply shortage, Rivian is revising its annual production guidance to be between 47,000 and 49,000 vehicles,” the corporate writes.

There’s no steerage on when this provide chain drawback can be resolved. Nonetheless, Rivian did reiterate the identical full-year steerage it had offered beforehand. “The company is also reaffirming its annual delivery outlook of low single digit growth as compared to 2023, which it expects to be in a range of 50,500 to 52,000 vehicles,” Rivian writes.

Apparently, regardless of the availability chain drawback, Rivian produced a number of thousand extra models than it delivered — 13,157 versus the aforementioned 10,018, respectively. Is that only a matter of pure delays getting vans and SUVs to clients, or is Rivian additionally going through shopper demand challenges?

One factor I’m questioning is how a lot Rivian may be going through an Osborne impact drawback. The R1T and R1S are interesting automobiles to many patrons, however the lately introduced R2 and R3 are certain to suit higher into many individuals’s budgets and I do know many EV fans are presently ready their launch earlier than shopping for their subsequent, or first, EVs. What number of of these clients may need purchased an R1S or R1T as an alternative if not for the launch of the R2 and R3?

In the intervening time, the R1T begins at $70,000 and the R1S begins at $76,000. Each are costly automobiles. Sure, one would suppose that even at these costs, Rivian might attain 50,000+ annual gross sales, however who is aware of? The market has been seeing ups and downs, and an increasing number of patrons have gravitated over to new electrical automobiles from legacy auto manufacturers.

Maybe Rivian will not be going through demand points in any respect and it’s all simply what the corporate mentioned in its press launch for traders at the moment — an surprising provide chain disruption is slowing down its gross sales development. In any case, the way forward for the corporate now appears depending on the discharge, ramp-up, and success of the R2 and R3, identical to Tesla’s success has been closely depending on the lower-cost Mannequin 3 and Mannequin Y, quite than the low-volume Mannequin S and Mannequin X (which have comparable quarterly gross sales to the Rivian R1S and R1T). We lately had a podcast on the potential rise of Rivian. Hearken to that under in case you missed it. For now, the information is that Rivian’s rise is on maintain, however let’s see if the corporate can bounce again stronger within the coming yr and probably reside as much as the expectations many EV followers have for the corporate.