Transportation

Rivian Shares Drop After EV Maker Slashes Production Target

  • Ongoing component shortage slowed output in third quarter
  • Company now expects production to drop from a year ago
A Rivian R1T electric vehicle in New York.Photographer: Yuki Iwamura/Bloomberg
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Rivian Automotive Inc. shares tumbled after the automaker cut its annual production target, citing a worsening supply crunch at its lone US assembly plant.

The company now expects production to drop as much as 18% this year, due to an ongoing shortage of a component used to make its electric pickups, sport utility vehicles and commercial vans. Third quarter output and deliveries both came up short of analysts estimates.