Shares of Rivian Automotive fell about 8% during premarket trading Friday after the electric vehicle startup lowered its annual production

stock fell 9.2% after the EV manufacturer slashed its full-year production forecast and delivered fewer vehicles in the third quarter than expected, as the startup grappled with a parts shortage. Rivian said the lower production target — down from 57,000 units to between 47,000 and 49,000 — is due to a “production disruption. Rivian now expects full-year production to be between 47,000 and 49,000 vehicles, down from its earlier forecast of 57,000 vehicles. The forecast cut means the company now expects to make fewer vehicles than it did last year. Slowing growth in electric-vehicle demand has affected the entire industry, as Americans dealing with high interest rates turn to cheaper hybrids. U.S. market leader Tesla also missed quarterly deliveries estimates earlier this week. Lowering costs is crucial for Rivian as it looks to weather the demand slowdown and increase production of its R1 models, while gearing up to manufacture its smaller R2 models in 2026.

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

Rivian reaffirmed its annual deliveries forecast of 50,500 to 52,000 vehicles. Analysts were expecting 53,491, according to Visible Alpha.

German automaker Volkswagen said earlier this year it will invest up to $5 billion in Rivian as part of a joint venture which could help it boost its cash reserves and turn cash flow positive.