Rivian's Production Guidance Cut Spurred By Miscommunication With Atlanta-Based Supplier, Resulting In Shortage Of Critical Copper Windings For Its Motor: Report
Portfolio Pulse from Anan Ashraf
Rivian Automotive (NASDAQ:RIVN) has reduced its annual EV production target due to a miscommunication with its sole supplier of copper windings, Essex Furukawa. This has led to a shortage of critical components, impacting production and causing a significant drop in Rivian's stock price.
October 08, 2024 | 9:11 am
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NEGATIVE IMPACT
Rivian's stock is likely to be negatively impacted in the short term due to a reduction in its annual EV production target. This is caused by a miscommunication with its supplier Essex Furukawa, leading to a shortage of copper windings, a critical component for its vehicles.
Rivian's production cut is directly linked to a miscommunication with its sole supplier of copper windings, Essex Furukawa. This has resulted in a shortage of a critical component, affecting both R1 vehicles and commercial vans. The production cut has already led to a significant drop in Rivian's stock price, indicating a negative short-term impact.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100