Rivian Slows Production Due to Copper Shortage, Shares Drop
Rivian, the electric vehicle (EV) manufacturer, faces production challenges due to a shortage of copper windings. The main supplier, Motherson Group, is currently unable to meet Rivian's demands. This issue has led to a reduction in Rivian's annual production forecast and raised concerns among analysts.
The scarcity of copper windings, a critical component in EV motors, has been caused by a miscommunication with supplier Essex Furukawa. The company has allocated resources to other clients, slowing Rivian's production of its R1 pickup, SUV, and Amazon delivery vans. Rivian's annual production forecast has been adjusted down by 18%, with 47,000 to 49,000 vehicles expected this year.
Analysts worry that this shortage might impact deliveries beyond 2025 and jeopardize Rivian's goal of achieving a positive gross margin. Rivian's shares dropped nearly 9% on Friday following the announcement of reduced 2024 production targets.
Rivian is working to resolve the copper winding shortage issue with its suppliers. The company aims to minimize the impact on its production schedule and delivery commitments. However, analysts remain cautious about the potential long-term effects on Rivian's production and financial goals.
Read also:
- Reporter of Silenced Torment or Individual Recording Suppressed Agony
- Solar panel troubles on rooftops
- EPA Administrator Zeldin travels to Iowa, reveals fresh EPA DEF guidelines, attends State Fair, commemorates One Big Beautiful Bill
- Musk announces intention to sue Apple for overlooking X and Grok in the top app listings
