- Rivian stock tumbled Friday after reporting its first quarterly results as a public company late Thursday.
- The maker of electric pickup trucks revealed it will fall short of its 2021 production target due to supply-chain constraints.
- Rivian also announced the construction of a new factory in Georgia, with EV production expected to begin in 2024.
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Rivian stock sank Friday after revealing late Thursday that production of electric trucks this year would fall short of its target.
The EV startup made the disclosure in its first quarterly report since last month's blockbuster initial public offering, which catapulted its market cap past Ford's and General Motors'.
But like the rest of the global auto industry, Rivian is suffering from supply-chain constraints that are holding back production. The disruptions mean the company will come "a few hundred vehicles short" of its goal to produce 1,200 vehicles by the end of 2021, according to a third-quarter earnings statement.
Shares of Rivian tumbled as much as 15% to an intraday low of $92.62 but pared losses to 14% by 10:15 a.m. ET. Lucid Group, another recently public EV startup, was down 8%.
Rivian also confirmed plans to build a new factory in Georgia, which will add to its existing production capacity in Normal, Illinois. Construction on the $5 billion plant will begin in summer 2022, with production of EVs expected to start in 2024.
Rivian is building the R1T truck, the R1S SUV and delivery vans. The company has emerged a top potential rival to Tesla, which is also developing an electric pickup truck to go with its electric SUV.
As Rivian struggles with supply issues, about 2,000 pre-orders are rolling in each week. Combined preorders for the electric truck and SUV climbed to 71,000 as of December 15 from 55,400 at the end of October, the company said.
But for now, actual sales are still limited. Third-quarter revenue came in at just $1 million as deliveries of its first EVs began in September. Rivian posted a net loss of $1.2 billion, or $12.21 a share, and an adjusted operating loss of $776 million.