Shares of Rivian plunged 10% after CEO RJ Scaringe posted a surge in customer reservations but cut production outlook, according to the letter by Rivian on Thursday.

  • Rivian stated that it projects to fall short of its 2021 production target of 1,200 vehicles.
  • The company indicated that it was facing supply chain constraints and challenges boosting production of the complex batteries that power the vehicles.
  • Scaringe stated that ramping up production systems was a real challenge, further noting that battery constraint does not present long-term challenges.
  • Meanwhile, Rivian noted that the total reservations for its electric R1T pickup and R1S SUV rose to 70,000 as of December 15, an increase of 28% compared with the recent tally of 55,400 vehicles in November.

The company disclosed that it has produced 652 R1T and R1S vehicles and posted 386 of those, including production and sale of the first two R1S SUVs prior to this week. RVN down -5.33%