- Electric automaker, Rivian (RIVN, $33.95), announced a recall of 13,000 vehicles built in late 2021 through September 2022, due to a loose fastener that could cause drivers to lose steering control. Although no injuries have been reported, Rivian attempts to inspect all vehicles within 30 days at no cost to the customer or company.
- This is not the first time Rivian, requested a callback. In May the company recalled 500 electric pickup trucks after discovering that airbags may not deactivate when a child is in the front passenger seat.
- Rivian's recall of its electric trucks will be a setback for the company, which is trying to increase production at its plant in Normal, Illinois to reach 25,000 vehicles. The company is still proving itself as a full-fledged manufacturer of trucks and SUVs, rather than just another start-up.
Why it matters
Rivian claims that the financial impact of this recall will be negligible, but it has already faced many manufacturing challenges this year. Production has increased slowly, but supply-chain issues, particularly in the semiconductor industry, continue to hamper its ramp-up and push costs higher. Currently, the auto manufacturer’s stock price is down nearly 67% this year.