Rivian recalls nearly all EV deliveries to date due to mounting issue
Rivian Automotive, Inc.'s otherwise good week's RIVN ended in bad news for the electric vehicle maker.
What happened: Rivian announced a voluntary recall of electric vehicles it shipped to customers after it identified issues with a fastener, according to a letter sent by CEO R.J. Scaringe to clients, whom Benzinga consulted. In rare circumstances, the nut could loosen completely, he added.
"While we have only seen seven reports potentially related to this issue in our data fleet, one is too many," he added.
As of Q4 2021, the company has so far shipped 13,198 EVs.
Rivian currently manufactures the R1T Electric Pickup Truck, R1S SUV, and EV Delivery Van which it has been contracted to supply to Amazon, Inc. AMZN.
The company said customer safety is its top priority and it is committed to resolving the issue as quickly as possible and free of charge at one of its service centers. The official recall notice is issued Saturday by the National Highways Traffic Safety Administration, the CEO's letter says.
Scaringe said in the letter that rectification - tightening the fastener to a higher torque tolerance, would only take a few minutes and in some cases the part might need to be replaced.
A Rivian spokesperson told Benzinga in an emailed statement that the company had built enough capacity to complete the necessary action in about 30 days.
"At this time, we are not aware of any injuries resulting from this issue," the spokesperson added.
See also: Rivian is finally starting to turn the page, analyst says ahead of second quarter results
Why it matters: Rivian is among the electric vehicle startups that have successfully transitioned to commercial manufacturing, and its electric pickup truck has beaten industry titans such as Tesla, Inc. TSLA and Ford Motor Company F to the finish line.
After initial problems due to supply chain issues, which forced Rivian to halve its 2022 production forecast, it was making slow and steady progress in the electric vehicle space . Earlier this week, the company announced third-quarter production and deliveries of 7,363 vehicles and 6,584 vehicles, respectively, and also confirmed its full-year production guidance of 25,000 units.
Even though most other EV stocks fell along with the broader market, Rivian was among those that outperformed, gaining 3.2% on the week. News of the recall, which was announced after the market closed on Friday, could trigger short-term weakness in the stock, though the company downplayed it as a minor "structural flaw."
Rivian closed Friday's session down 7.64% at $33.95, according to data from Benzinga Pro.
Photo: Courtesy of rivian.com
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Rivian Automotive, Inc.'s otherwise good week's RIVN ended in bad news for the electric vehicle maker.
What happened: Rivian announced a voluntary recall of electric vehicles it shipped to customers after it identified issues with a fastener, according to a letter sent by CEO R.J. Scaringe to clients, whom Benzinga consulted. In rare circumstances, the nut could loosen completely, he added.
"While we have only seen seven reports potentially related to this issue in our data fleet, one is too many," he added.
As of Q4 2021, the company has so far shipped 13,198 EVs.
Rivian currently manufactures the R1T Electric Pickup Truck, R1S SUV, and EV Delivery Van which it has been contracted to supply to Amazon, Inc. AMZN.
The company said customer safety is its top priority and it is committed to resolving the issue as quickly as possible and free of charge at one of its service centers. The official recall notice is issued Saturday by the National Highways Traffic Safety Administration, the CEO's letter says.
Scaringe said in the letter that rectification - tightening the fastener to a higher torque tolerance, would only take a few minutes and in some cases the part might need to be replaced.
A Rivian spokesperson told Benzinga in an emailed statement that the company had built enough capacity to complete the necessary action in about 30 days.
"At this time, we are not aware of any injuries resulting from this issue," the spokesperson added.
See also: Rivian is finally starting to turn the page, analyst says ahead of second quarter results
Why it matters: Rivian is among the electric vehicle startups that have successfully transitioned to commercial manufacturing, and its electric pickup truck has beaten industry titans such as Tesla, Inc. TSLA and Ford Motor Company F to the finish line.
After initial problems due to supply chain issues, which forced Rivian to halve its 2022 production forecast, it was making slow and steady progress in the electric vehicle space . Earlier this week, the company announced third-quarter production and deliveries of 7,363 vehicles and 6,584 vehicles, respectively, and also confirmed its full-year production guidance of 25,000 units.
Even though most other EV stocks fell along with the broader market, Rivian was among those that outperformed, gaining 3.2% on the week. News of the recall, which was announced after the market closed on Friday, could trigger short-term weakness in the stock, though the company downplayed it as a minor "structural flaw."
Rivian closed Friday's session down 7.64% at $33.95, according to data from Benzinga Pro.
Photo: Courtesy of rivian.com
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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