Rivian (RIVN) said Friday that it cut its full-year production forecast and delivered fewer vehicles in the third quarter than analysts expected, as the startup struggles with a parts shortage and slowing growth in demand for electric vehicles.

The company's shares fell over 6% in premarket trading. The stock is down more than 50% this year.

The company said shortages of parts used in its R1 SUV and R1T pickup trucks and vans began in the third quarter and have worsened in recent weeks.

Rivian now expects full-year production between 47,000 and 49,000 vehicles, down from its previous forecast of 57,000 vehicles. The forecast cut means the company now expects to produce fewer vehicles than last year.

Slower growth in demand for electric vehicles as Americans struggling with high interest rates switch to cheaper hybrid vehicles has impacted the industry. US market leader Tesla also missed quarterly delivery estimates earlier this week.

Amazon.com-backed Rivian also closed its sole manufacturing facility in Normal, Illinois, for three weeks in April to simplify the manufacturing process and reduce the cost of building its electric pickups and sport utility vehicles.

Reducing costs is critical for Rivian as it tries to weather the decline in demand and increase production of its R1 models while preparing for production of its smaller R2 models in 2026.

The company said it delivered 10,018 vehicles in the quarter ended Sept. 30, compared with estimates of 12,078, according to 15 analysts surveyed by Visible Alpha.

Rivian reiterated its annual delivery forecast of 50,500 to 52,000 vehicles this year. Analysts expected 53,491, according to Visible Alpha.

Volkswagen announced earlier this year that it would invest up to $5 billion in Rivian as part of an equal joint venture to share electric vehicle architecture and software.

The investment will help Rivian strengthen its cash reserves and generate positive cash flow. The company aims to achieve its first gross profit in the last three months of 2024.

(Reporting by Zaheer Kachwala in Bengaluru; Editing by Shinjini Ganguli)