Rivian temporarily halts Amazon delivery van production due to parts shortage

Rivian Automotive (NASDAQ:RIVN) slipped in early trading after the electric vehicle maker paused production of the electric commercial van it makes for Amazon (AMZN) due to a parts shortage. Bloomberg reported that the temporary stoppage began earlier in August at the company’s manufacturing plant in Normal, Illinois. Rivian (RIVN) expects to recover all missed production. A Rivian spokesperson noted that production of R1 electric pickup and SUV models is unaffected by the parts shortage.

“We’re aware that Rivian encountered short-term production issues this month, and we don’t expect it to impact us,” stated in an Amazon (AMZN) spokesperson in an emailed statement. Rivian Chief Financial Officer Claire McDonough has already warned that the company expects Amazon (AMZN) to see fewer vehicle deliveries during the fourth quarter, which is consistent with the online merchant’s seasonal pattern. During Rivian’s (RIVN) Q2 earnings call, RC Scaringe also highlighted that Rivian (RIVN) is started running the pilot programs with non-Amazon customers.

Shares of Rivian Automotive (RIVN) were down 0.80% in premarket action on Friday. The EV stock is down more than 40% on a year-to-date basis. Short interest on RIVN stands at 11.9% of the total float.