Rivian shares dropped 10% in after-hours trading after the company cut vehicle production expectations for the year. Rivian expects to fall a few hundred vehicles short of its 2021 production target of 1,200 vehicles.
The company noted that the production cuts were due to two main factors. First and foremost, supply chain constraints, and the second was the complexity of ramping up production of the batteries that power the vehicles.
The updates came alongside Rivian’s first quarterly report as a public company.
The report also confirmed that the companies $5 billion assembly plant in Georgia will come online in 2024.
Aside from the production snags, Rivian has seen increased demand for both their R1T and R1S vehicles.
Rivian saw an increase of 28% in terms of reservations compared to a month ago.
The company now has 71,000 reservations combined for their two vehicles.
The company also confirmed production and delivery numbers in the report.
Rivian produced 652 R1T and R1S vehicles and delivered 386 vehicles.
These deliveries include the first two R1S SUVs, which Rivian delivered earlier this week.
Rivian’s losses, although significant, did fall within Wall Street estimates for the quarter.
The company reported an operating loss of $776 million and a net loss of $1.23 billion.
However, as the company ramps up production and opens its new Georgia plant, these numbers should correct.