(Reuters) -Rivian said on Friday it slashed its full-year production forecast and delivered fewer vehicles in the third quarter than analysts had expected, as the startup grapples with a parts shortage and slowing growth in electric-vehicle demand.
Shares of the company fell over 6% in premarket trading. The stock has declined more than 50% this year.
The company said the shortage of the parts, used in its R1 SUV and R1T pickups as well as its delivery vans, began in the third quarter and has become more acute in recent weeks.
Rivian (NASDAQ:RIVN) now expects full-year production to be between 47,000 and 49,000 vehicles, down from its earlier forecast of 57,000 vehicles. The forecast cut means that the company now expects to make fewer vehicles than it did last year.
Slowing growth in electric-vehicle demand, as Americans dealing with high interest rates turn to cheaper hybrids, has affected the industry. U.S. market leader Tesla (NASDAQ:TSLA) also missed quarterly deliveries estimates earlier this week.
Amazon (NASDAQ:AMZN).com-backed Rivian had also closed its only manufacturing facility, in Normal, Illinois, for three weeks in April to simplify its manufacturing process and cut the costs of building its electric-pickup trucks and sport utility vehicles.
Lowering costs is crucial for Rivian as it looks to weather the demand slowdown and increase production of its R1 models, while gearing up to manufacture its smaller R2 models in 2026.
The company said it handed over 10,018 vehicles in the quarter ended Sept. 30, compared with estimates of 12,078, according to 15 analysts polled by Visible Alpha.
Rivian reaffirmed its annual deliveries forecast of 50,500 to 52,000 vehicles this year. Analysts were expecting 53,491, according to Visible Alpha.
Volkswagen (ETR:VOWG_p) said earlier this year it will invest up to $5 billion in Rivian as part of an equally-controlled joint venture to share EV architecture and software.
The investment will help Rivian bolster its cash reserves and turn cash-flow positive. The company aims to turn its first gross profit in the last three months of 2024.