Rivian Faces Production Cut Due to Supplier Miscommunication

A miscommunication with Essex Furukawa led to a critical shortage of copper windings, impacting Rivian's EV production targets.

Rivian's stock value plummeted after the company announced a significant reduction in its 2024 production forecast.
The production cut was triggered by a miscalculation in supply needs communicated to Essex Furukawa, Rivian's sole supplier of copper windings.
Essex Furukawa, unable to meet Rivian's revised needs, had already committed its resources to other clients.
Rivian has identified alternative suppliers, but the cost and timing challenges are significant.
Analysts express concern over Rivian's ability to meet delivery goals and achieve positive gross margins in the near term.