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Rivian, which has seen a steep rise in the stock market after its blockbuster IPO, further tarnished its outlook by announcing on Thursday that supply chain problems could severely limit electric vehicle production.

The company said it could only produce 25,000 vehicles this year; that figure was half what he said he would have done if the supply chain were not a “key limiting factor”.

Problems securing parts and materials affect all automakers, but they hit Rivian when it sells very few vehicles and faces competition from larger companies.

“Like the rest of the industry, we expect supply chain challenges to continue into 2022,” Rivian said in a letter detailing its financial results for the past year. In a meeting with Wall Street analysts on Thursday, Rivian’s chief executive RJ Scaringe said the problems were caused by “a small number of parts”.

Rivian makes a high-end truck and a sports all-terrain vehicle designed to be an off-road vehicle rather than a freight vehicle. Rivian also has a deal to build electric delivery trucks for Amazon, a major shareholder, which has placed 100,000 orders. When Rivian went public, investors saw it as a possible competitor to Tesla, the biggest electric vehicle maker.

As of Tuesday, Rivian said it has produced 1,410 vehicles this year, a small fraction of the 83,000 orders placed. The company didn’t say how many pickup trucks it has delivered to Amazon this year.

Stock analysts said that Rivian’s report was disappointing and that stocks fell 12 percent in after-hours trading after the company announced its results.

“It’s been a very frustrating name,” said Dan Ives, analyst and general manager of Wedbush Securities. “These results show that Rivian has more wood to cut.” He added that initially he expected Rivian to produce 40,000 vehicles this year, well above the company’s latest estimates, and analysts expect reported orders for Rivian vehicles to be higher than 83,000.

Along with other electric vehicle manufacturers, Rivian has to contend with rising prices of lithium and nickel used in battery making. Russia is a major exporter of nickel, and fears that the metal’s supply could be restricted have boosted its price.

“We hope that the recent inflation we have seen in nickel pricing is short-lived,” Mr Scaringe said.

Rivian went public in November and raised $13.5 billion – the cash it will need to expand Factory in Normal, Ill. and create one in Georgia. The stock initially rose, giving Rivian a market capitalization that far exceeded that of General Motors, but is now trading at roughly half its IPO price.

Shares have fallen in recent months after Rivian said it was facing production difficulties, then fell further in a customer relations fiasco on pricing. Rivian said last week that it will increase the prices of its vehicles, including those already ordered. Facing a backlash, Rivian backed down and applied the increases only to new orders, and Mr. Scaringe apologized in a letter to his customers.

Before the price change, Rivian’s truck and car could cost up to $83,000. The price can reach $ 95,000 after the introduction of new offers.

Rivian had revenue of $55 million and a net loss of $4.7 billion last year. It used $4.4 billion in cash to run its business and invest in new facilities and equipment, and at the end of last year it had $18 billion in cash on its balance sheet. The company said it expects a loss of $4.75 billion this year under its measure of profit, known as adjusted earnings before interest, taxes, depreciation and depreciation.

Mr. Ives said investors can also forego higher costs, especially if they expect higher order numbers. “The cost overruns are much more than Cadde expected,” he said. “If pre-orders were fast, Street would be fine with that.”

The executive overseeing Rivian’s operations left last year as the company sought to increase production. On Thursday, Mr Scaringe said the company will announce a new chief operating officer next week.