Rivian Automotive (NASDAQ: RIVN) stock dropped Friday morning, shedding almost 4.6% in the first hour of trading before gaining some ground. The electric-vehicle (EV) stock was already under a bit of pressure this week after Rivian's expansion project ran into hurdles, and it appears some of the things CEO RJ Scaringe just said at the Wolfe Research virtual global auto, auto-tech, and mobility conference failed to lift investor sentiment.
One of the biggest challenges that Scaringe highlighted at the conference on Thursday was the ongoing semiconductor-chip shortage, according to Reuters. Supply constraint was the primary reason why Rivian fell short of its production target of 1,200 vehicles in 2021, and its shares took a massive hit thereafter.
Investors are now hoping to see the chip-supply crunch -- which started in 2020 and has hit the automotive industry the hardest -- ease in 2022. Unfortunately, Scaringe believes the chip shortage could last through the year, even as the company tries to navigate other headwinds, such as labor constraints.
Source Fool.com