• Rivian’s production and deliveries fell sharply in the third quarter compared to the same period last year.
• The automaker says a component shortage started a few months ago has now become more “acute.”

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After posting record sales last year, Rivian is undergoing a turbulent phase this year as competition heats up among premium EVs and more affordable options from rivals enter the market. For the third quarter, its production and deliveries are significantly lower compared to last year’s period.

Rivian’s Q3 production fell nearly 24%, while deliveries were down 55% compared to the same period last year. The automaker produced 13,157 vehicles in Q3 and delivered 10,018 units. That’s a big drop from the record 16,304 EVs and 15,564 deliveries it made in the same quarter last year.

According to the automaker, the root cause of this drop is a lingering supply issue. A supply shortage of a shared component on the R1 and RCV platforms that began in the third quarter has become more severe in recent weeks and is still ongoing, the brand said in a press release on Friday.

The R1 platform underpins the R1S electric SUV and the R1T electric truck, whereas the RCV is a skateboard-style chassis for the Amazon delivery vans.

On a more positive note, Rivian increased production in Q3 compared to the second quarter, when it produced just 9,612 vehicles at its plant in Normal, Illinois. However, deliveries were higher last quarter, with buyers driving home 13,790 EVs.

This means that Rivian’s annual production and delivery targets have been revised. The automaker expects to produce between 47,000 and 49,000 vehicles and deliver between 50,500 and 52,000 vehicles in 2024. Just last quarter, Rivian was hoping that customers would drive home some 57,000 Rivians this year.

Only time will tell if this is a minor bump in the road or something prolonged. But there are several reasons to be optimistic. The R1S and R1T have now entered their second generation and bring huge upgrades under the skin, especially in the software and electrical architecture department.

The partnership with Volkswagen has also validated Rivian as a leader in the software space.

Moreover, anticipation is running high for Rivian’s upcoming affordable models. The smaller Tesla Model Y-rivaling R2 is expected to launch in 2026. The R3 and the R3X, which won enthusiasts’ hearts early this year, should be out sometime after the R2, assuming things go according to plan.