What's Going On With Rivian Automotive Shares Today?

Rivian Automotive, Inc. RIVN shares are trading lower on Friday.

The company reportedly halted production of the electric commercial van it makes for Amazon due to a parts deficit in the latest supply chain chaos for the EV maker, reported Bloomberg.

According to Rivian, the momentary halt began at its factory in Normal, Illinois, earlier this month.

The EV maker did not specify which components were in short supply but expected to recover all “missed production.”

According to a Rivian spokesperson speaking to Bloomberg, part shortages are across the board in the industry.

Also Read: Rivian Stock ‘Powering Through Some Speed Bumps’: Analysts Highlight Volkswagen JV, Amazon Partnership, R2 Launch After Q2 Earnings

However, production of R1 electric pickup and SUV models remains unchanged. Employees impacted by the pause can still work 40 hours a week.

The production issue marks another hiccup for the EV maker as it works toward increasing the outcome of its EV lineup next year.

Rivian, based in Irvine, California, currently manufactures battery-electric SUVs and pickups at its Illinois factory, as well as delivery vans mainly for Amazon, its largest shareholder.

“We’re aware that Rivian encountered short-term production issues this month, and we don’t expect it to impact us,” an Amazon spokesperson said in an emailed statement to Bloomberg.

Rivian has accumulated an excess of the delivery vans at the plant that are awaiting delivery to Amazon.

The carmaker has an agreement to supply the company with 100,000 vans by the end of the decade, and about 15,000 are already in service in the U.S.

RIVN Price Action: RIVN shares are trading lower by 2.58% to $13.41 at publication Friday.

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