Rivian’s shares plunged nearly 11% on Friday, hitting a new record low since the company’s blockbuster IPO last month after the electric truck maker warned it would miss its 2021 production target due to ongoing supply chain issues.
Rivian stock fell as much as 15% – a new low of less than $ 100 per share – before losses were recouped and the day fell over 10%.
Rivian released its first quarterly results as a publicly traded company on Thursday: While the results were broadly in line with earlier estimates, the company warned of ongoing challenges in trying to ramp up production and take over electric vehicle giant Tesla.
Despite a surge in customer orders, with reservations for Rivian’s electric pickup trucks and SUVs up 28% from the previous month, the company said it will have “a few hundred vehicles fewer” of its 2021 production target of 1,200 vehicles.
Rivian attributed the failure to persistent supply chain problems and problems ramping up battery production to power the electric vehicles – although CEO RJ Scaringe said these were “not long-term challenges”.
In its earnings announcement, the company announced that it had produced 652 R1T pickups and R1S SUVs by December 15, of which 386 had been delivered.
Rivian stock has struggled over the past few weeks, falling slightly – nearly 2% – since the company went public on November 10 in one of the largest initial public offerings of the year, valued at $ 90 billion .