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EV automaker Rivian recalls almost all vehicles, sees stock drop

Rivian-Georgia
Posted at 12:48 PM, Oct 10, 2022
and last updated 2022-10-10 15:48:30-04

New electric-vehicle automaker Rivian recalled nearly all of its vehicles, causing a Monday slip of its stock during trading on Wall Street, intensifying concerns from investors.

The company fears that it could have problems meeting production and sales targets for 2023, Reuters reported. And the specific details regarding the latest large recall are a source of concern for investors, with a fastener on the vehicles that might not have been tightened correctly in the factory, CNBC reported.

The company announced late on Friday that it needed to recall over 12,000 vehicles, which amounts to just about every electric vehicle the company has produced so far.

Included in the recall are Rivian's R1T pickup and R1S SUV manufactured through September. Some EDV delivery fans produced by Rivian are also included in the recall, which was produced for Amazon.

The company estimates that only about 1% of the 12,212 total vehicles included in the recall have the defect, but that didn't stop the company's stock from dropping over 10% during Monday trading.

The fastener defect is related to the front suspension, which the company says may not have been fully tightened in some vehicles. If the fastener isn't tight, it could affect front-end alignment causing vibrations and noise and influencing the steering feeling.