Rivian Automotive has reduced its production guidance for 2024 as it deals with a parts shortage, the company announced Oct. 4. In a statement, executives said they are short a component needed for both the R1 and commercial van platforms, thus hurting output of the company’s R1 SUV, R1T pick up, and delivery vans.
The shortage began in the third quarter but became “more acute in recent weeks” and is still ongoing. As a result, CEO R. J. Scaringe and his team expect to produce between 47,000 and 49,000 vehicles for the full year, a significant reduction from the 57,000 originally planned.
As of Sept. 30, Rivian had made 36,749 vehicles in 2024. Last year, the company exceeded its final production estimate by more than 7,000 vehicles, coming in at 57,232 (Earlier in 2023, leaders had forecast 62,000 units).
Scaringe and his team didn’t specify the part they’ve run short of but their latest news is reminiscent of supply-chain struggles Rivian—along with plenty of other auto makers—had to deal with in 2022. Those woes only began to clear up late that year, but not before Rivian had lost five days of production early in the fourth quarter because of a lack of semiconductors.
Cybertruck recalls and the end of a Model 3 variant
Rivian isn’t the only electric-vehicle company experiencing production issues heading toward the end of 2024. Tesla Inc. recently recalled more than 27,000 of its Cybertrucks due to “visibility issues” with the rearview camera. Per a filing by the National Highway Traffic Safety Administration (NHTSA), the display will remain blank for up to eight seconds after shifting into reverse. The legal limit in the United States is two seconds.
It’s the fifth recall for the Cybertruck since the vehicle debuted in late 2023 and affects models manufactured between Nov. 13 and the middle of last month, due to a specific software installed for low voltage hardware. Tesla remedied the problem with an over-the-air update in late September.
Alongside the recall news, Tesla leaders also have discontinued the Standard Range variant of their Model 3 sedan, the cheapest in the company’s line-up with a starting price of just under $39,000.
The sedan, which used lithium iron phosphate (LFP) battery cells sourced from China, likely would have shot up in price due to new, higher tariffs on Chinese imports: a 100% tax on EVs and 25% on EV batteries and key minerals. The vehicle also was ineligible for the $7,500 EV tax credit due to the Chinese-made components.
Tesla’s cheapest vehicle is now the Model 3 Long Range variant, which qualifies for the federal tax credit and starts at $42,490.
EVgo’s billion-dollar boost
EVgo, in comparison to Tesla and Rivian, began October on a high note with news of a conditional commitment for a loan guarantee of up to $1.05 billion of debt financing, from the U.S. Department of Energy.
The DOE is providing the financing under its Title 17 program, which aims to accelerate the expansion of a fast-charging network in community locations. The Federal Financing Bank will directly issue the loan, guaranteed by the DOE, and EVgo will not have to raise any third-party equity.
If the loan goes through, EVgo executives expect to add more than 1,000 jobs (most of which will be contracted roles) and build roughly 7,500 new fast-charging stalls across the country by 2030.
According to a press release, at least 40% of the stalls are anticipated to be in “marginalized areas” overburdened by environmental impacts.
“EVgo shares the Biden-Harris administration’s goal of increasing EV charging access in the communities that need it most,” said Badar Khan, CEO of EVgo. “This historic investment would meaningfully accelerate our network expansion to provide public charging to EV drivers across the United States.”
