Shares of California-based electric vehicle company Rivian fell 8.5% Monday morning after a defect forced the company to recall nearly all of its vehicles.
The recall, due to a loose fastener that could result in a loss of steering control, affects roughly 12,200 of the 13,198 vehicles that Rivian has delivered, according to a recall report filed with the National Highway Traffic Safety Administration on Oct. 6. The recall has left some investors questioning if the company will be able to hit its production goal of 25,000 vehicles by the end of the year after supply-chain struggles already forced the company to slash production expectations, Reuters reported Monday. (RELATED: Global Trade Group Slashes Expectations As Director Warns Of ‘Crisis’)
“The safety of our customers will always be our top priority, and we are committed to fixing this issue on any affected vehicles as quickly as possible,” a Rivian spokesperson told the Daily Caller News Foundation. “We will begin immediately contacting affected customers to schedule appointments for inspections and repairs if needed. We will make any necessary adjustments free of charge at one of our service centers.”
International investment firm RBC Capital Markets, which has previously viewed the company very optimistically, expressed concerns that it would be unable to reach its production goals, noting that the company still had to undergo downtime at factories in order to begin ramping up production, according to Reuters. RBC had previously noted that the company’s partnership with Amazon, who has ordered 100,000 vehicles by 2025 at an estimated price of $7 billion, gave Rivian a competitive edge against similar companies and would help it scale up production.
Rivian it will recall nearly all of its 13k vehicles produced due to a possible issue of a loose fastener that could make a driver lose steering control. This is a black eye for Rivian now just starting to hit its stride on reaching its 25k production target. A modest setback.
— Dan Ives (@DivesTech) October 10, 2022
“The repair takes a few minutes to complete, and with customer collaboration, we have built out the capacity to complete the needed action in as little as 30 days,” a Rivian spokesperson told the DCNF. “To date, we are not aware of any injuries that have resulted from this issue.”
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