Irvine’s Rivian warns supply constraint to hit output as shares drop to record low



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Irvine’s Rivian warns supply constraint to hit output as shares drop to record low

On Friday, shares’ prices of Rivian Automotive Inc., the Amazon-backed electric vehicle manufacturer headquartered in Irvine, California, dived as much as 15 per cent, skidding to a record low, after the e-vehicle maker had unveiled at its first quarterly earnings’ report as a publicly listed company that supply chain challenges had been mounting amid a steep shortage of raw materials alongside a squeezed labor market.

However, followed by a downbeat Q3, 2021 earnings’ report released late on Thursday, Rivian shares opened up Friday’s Wall St. nearly 15 per cent lower at $93.27 apiece and tumbled to $92.62 per share in early trading, however, after recouping some losses in late-afternoon trading, Rivian wrapped up the week at $97.70 per share, taking a header of as much as 10.26 per cent in the session.

Nevertheless, before Friday’s havoc-scale sell-off wave, Rivian, often touted as a potential competitor to Tesla Inc which had been valued over a jawdropping $100 billion in a stellar US capital market debut last month after raising a record $14 billion at its initial public offerings, surged more than 40 per cent.

Rivian pummels nearly 15% after quarterly earnings’ report

In factuality, Rivian said on Thursday that the Irvine-headquartered e-vehicle manufacturer was expecting its production to fall ‘a few hundred vehicles short’ of a 2021 target of 1,200 units, mostly due to a caustic supply chain disruption.

Nonetheless, the company also had announced a plan to construct a $5 billion second US assembling plant in Georgia in a bid to ramp up outputs, though the statement had little or no impacts on investors’ morale. Meanwhile, addressing to a growing holocaust on Rivian’s supply chain, a RBC Capital Markets analyst Joseph Spak, said, “We don't want to read too much into near-term issues ...

but it does highlight the risk that Rivian has a lot on its plate”.