Transportation
Rivian Misstep Triggered Parts Shortage Hobbling Its EV Output
- Communication blunder left EV maker without critical supplies
- Carmaker last week slashed its 2024 output goal on shortage
Workers assemble components of a Rivian electric vehicle at the company's manufacturing facility in Normal, Illinois.
Photographer: Jamie Kelter Davis/BloombergThis article is for subscribers only.
When Rivian Automotive Inc.’s shares sunk nearly 9% on Friday, analysts were puzzled as to why the electric-vehicle maker had to so drastically cut its 2024 production targets over yet another supply chain hiccup.
The answer lies in a miscommunication earlier this year between Rivian and its supplier, Atlanta-based Essex Furukawa, which has left the carmaker without access to copper windings, a core component in the electric-vehicle motors that Rivian makes in-house, according to people familiar with the matter.