Rivian (RIVN) has temporarily paused production of its commercial delivery vans for Amazon (AMZN) due to a parts shortage, according to Reuters. This caused the EV company’s stock to drop by more than 3% at the time of writing. This production halt adds to the ongoing supply chain challenges Rivian has faced over the past two years, similar to other EV makers. A spokesperson confirmed the part shortage but assured that Rivian expects to recover any missed production.
This is quite a big deal for Rivian since Amazon’s orders make up a huge chunk of its revenue. In fact, it made up about 19% of sales last year.
The company did not reveal which part or supplier was affected and declined to specify when the production stoppage began or if it has resumed. However, on a more positive note, the part shortage apparently won’t impact the production of Rivian’s R1S SUV and R1T pickup models.
Is RIVN Stock a Buy or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on RIVN stock based on 12 Buys, eight Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 37% decrease in its share price over the past year, the average RIVN price target of $18 per share implies 36.57% upside potential.
