Rivian Automotive Inc (NASDAQ:RIVN) has temporarily halted the production of its electric delivery vans for Amazon due to a parts shortage, adding to the supply chain challenges the electric vehicle (EV) maker has faced.
The pause began earlier this month at Rivian's plant in Normal, Illinois, according to reports.
Despite the setback, Rivian expects to recover the lost production, though it has not provided a specific timeline.
The parts shortage affects only the Amazon delivery vans and does not impact the production of Rivian's other vehicles, including the R1S SUV and R1T pickup. Amazon, which holds a 16% stake in Rivian, has ordered 100,000 electric vans to be delivered by 2030, with around 15,000 already in service.
The production pause highlights the broader difficulties in the EV industry, where manufacturers continue to grapple with supply chain issues and semiconductor shortages. Rivian's stock dropped 5% following the news, reflecting investor concerns over the ongoing supply chain disruptions. The company has encountered several production challenges, including a factory shutdown in April for retooling.
Last year, Amazon-related sales made up roughly 19% of Rivian's revenue.