Rivian Automotive, an electric vehicle startup (RIVN), launched its IPO in November 10 raising almost $12 billion. The stock fell to $12 billion last Friday, its lowest point since the debut of its stock exchange listing. Rivian Automotive (RIVN) cited production issues and supply chain problems in the latest earnings report. RIVN expects that its production will fall below its target for 2021. Is it wise to invest in RIVN’s dip? Continue reading. Rivian Automotive Inc. (RIVN), an electric vehicle manufacturer, launched its public market debut on November 10, under the ticker “RIVN”, at a $78.00 initial offering price. RIVN’s market value hit $127.30 billion at the close of trading on November 12, just three days after it went public. RIVN’s shares plunged almost 15% to the lowest point since its IPO. The company cited operational problems that may have impacted its production plans as the reason. The company anticipates that its production will fall “a few hundreds” short of the 1,200 units it has set for 2021 due to disruptions in its supply chain. RIVN’s pre-orders for its pickup R1T and special utility vehicle R1S were 71,000 units, up from October, but according to some analysts, it is on the low end of expectations.

Due to the challenges in production, it could be difficult for the company to build volumes when demand increases. The company’s order book is strong, which supports production. However it can add pressure to deliver vehicles to customers. Current R1 orders will not be complete until 2023. Wells Fargo (NYSE:) analyst Colin Langan.

RIVN stock fell 21.8% over the last five trading days to close at $96.82. This stock is down 30% over the past month. However, it climbed 7.6% in yesterday’s trading session in part on Senate Majority Leader Charles Schumer’s optimistic comment that the Senate would try to hold a re-vote early next year to pass the potential Build Back Better bill. The bill contains many provisions that will boost the EV sector. However, RIVN is still uncertain if it passes. The EV startup also plans to build its EV plant next summer in Georgia. It will produce up to 400,000 units per year. Production isn’t expected to begin until 2024.

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