By Akash and Nivedita Balu

(Reuters) – Rivian Automotive Inc shares dropped 10% on Friday in premarket trading, following the first results of the electric pickup truck manufacturer as a listed business. This highlighted the difficulties it will face when ramping up production in order to compete with Tesla (NASDAQ) Inc.

Rivian announced that it will build a plant worth $5 billion to increase capacity. However, the company is still facing production problems despite receiving about 2,000 orders every week.

Joseph Spak from RBC Capital Markets, an analyst at RBC Capital Markets said: “We don’t want to over-examine near-term issues. But it does highlight that Rivian might have a lot on its plates.”

Due to constraints in the supply chain, production is expected to be “a few hundred less” than its 2021 goal of 1,200 vehicles.

RJ Scaringe, Chief Executive Officer of Amazon (NASDAQ) said that increasing production of R1T trucks and R1S SUVs would result in a “really complex orchestra”.

Rivian will be building its new Georgia plant next summer. The production line will open in 2024. Company plans to boost production by 50,000 vehicles in its Normal, Illionis plant. It opened in September.

The strong order book supports the production ramp but does increase pressure to get vehicles into customers who may become impatient with current R1 orders that won’t be available until 2023. Wells Fargo (NYSE:) analyst Colin Langan said.

Rivian is facing new challenges as the demand for electric vehicles rises. Rivian must also dispel doubts about whether or not a new company that makes electric cars can survive “production hell,” Elon Musk, Tesla’s CEO.

Musk stated that Rivian would only be successful if it could produce high levels of cash flow and breakseven.

Since November’s blockbuster IPO, shares in Tesla Inc, the most valued automaker in the world after Tesla Inc, have seen a 40% increase in value.