Rivian Pares Delivery Targets for 2022, Citing Supply Problems

Rivian, which has had a rocky experience within the inventory market after a blockbuster preliminary public providing, solid an extra shadow over its outlook on Thursday, reporting that provide chain issues may severely constrain its manufacturing of electrical autos.

The corporate stated it might be capable of produce solely 25,000 autos this yr, half the quantity it stated it may make if the availability chain weren’t a “basic limiting issue.”

Issues securing elements and supplies are affecting all automakers, however they’re hitting Rivian when it has offered only a few autos and faces competitors from bigger firms.

“Like the remainder of the trade, we anticipate provide chain challenges to persist by 2022,” Rivian stated in a letter to shareholders that detailed its monetary outcomes for final yr. On a name with Wall Avenue analysts on Thursday, R.J. Scaringe, Rivian’s chief govt, stated the issues centered on a “small variety of elements.”

Rivian makes a high-end truck — designed extra as an off-road car than as a cargo hauler — and a sport utility car. Rivian additionally has an settlement to make electrical supply vans for a giant shareholder, Amazon, which has ordered 100,000. When Rivian went public, buyers noticed it as a attainable competitor to Tesla, the most important electrical car maker.

Rivian stated that as of Tuesday, it had produced 1,410 autos this yr, a small fraction of the 83,000 orders submitted. The corporate didn’t say what number of vans it had delivered to Amazon this yr.

Inventory analysts stated Rivian’s report was disappointing, and its inventory plunged 12 % in after-hours buying and selling after the corporate launched its outcomes.

“It’s been a really irritating identify,” stated Dan Ives, analyst and managing director at Wedbush Securities, “and these outcomes present that Rivian nonetheless has much more wooden to cut.” He stated he had initially anticipated Rivian to make 40,000 autos this yr, effectively above the corporate’s newest forecast, including that analysts had anticipated orders for Rivian autos to be increased than the 83,000 reported.

Together with different E.V. makers, Rivian should take care of rising costs for lithium and nickel, that are utilized in making batteries. Russia is a giant exporter of nickel, and fears that the steel’s provide might be constrained have pushed up its worth.

“We hope the inflation that we’ve seen with nickel pricing very not too long ago is short-lived,” Mr. Scaringe stated.

Rivian went public in November, elevating $13.5 billion — money it might want to broaden its manufacturing facility in Regular, Sick., and construct one in Georgia. The inventory soared at first, giving Rivian a market worth exceeding that of Basic Motors, however it’s now buying and selling at roughly half its I.P.O. worth.

The shares declined in current months after Rivian stated it was dealing with manufacturing challenges, then tumbled additional in a buyer relations debacle over pricing. Rivian stated final week that it might improve the costs of its autos, even these already ordered. Dealing with a backlash, Rivian backtracked and utilized the will increase solely to new orders, and Mr. Scaringe apologized in a letter to prospects.

Earlier than the worth change, Rivian’s truck and automobile may price as a lot as $83,000. After the introduction of recent choices, the worth may attain $95,000.

Rivian had income of $55 million final yr and a web lack of $4.7 billion. It used up $4.4 billion of money working its enterprise and investing in new amenities and gear, and had $18 billion of money on its steadiness sheet on the finish of final yr. The corporate stated it anticipated a loss this yr of $4.75 billion underneath a measurement of income often called adjusted earnings earlier than curiosity, taxes, depreciation and amortization.

Mr. Ives stated buyers may additionally balk on the excessive stage of prices, particularly in the event that they had been anticipating increased order numbers. “The fee overruns are much more than the Avenue anticipated,” he stated. “If preorders had been on tempo, the Avenue can be wonderful with it.”

The manager overseeing Rivian’s operations left final yr as the corporate was making an attempt to ramp up manufacturing. On Thursday, Mr. Scaringe stated the corporate would announce a brand new chief working officer subsequent week.