Electric vehicle company Rivian is recalling nearly all of the vehicles it has produced to repair a defective bolt that compromises the stability and performance of the front suspension.
The recall includes 12,212 electric pickups, vans and SUVs, according to NHTSA.
The move delivers another blow to Rivian shares, which have been battered since its initial public offering a year ago. The Irvine, CA-based company went public at $78 and quickly rose to $179 per share. The company was trading at $34 when the news hit markets Monday, and quickly dropped 10%. The broader stock market has been sliding since Rivian’s IPO, but the EV maker’s value has slid much faster from its year-ago highs.
Rivian produces the battery-electric R1T pickup, R1S SUV and electric delivery vans for Amazon, which is the company’s single biggest investor. Ford also has an investment in Rivian. This is the company’s third recall, according to NHTSA. The company recalled about 500 vehicles in August for an airbag defect, and about 200 vehicles in May for a seatbelt anchor problem.
To be fair, these are recalls that other automakers routinely make, and have nothing to do with batteries or the vehicles’ propulsion system, which would be much more worrisome to investors.
Rivian manufactures its vehicles in Normal, IL, in a plant formerly operated by a joint venture between DaimlerChrysler and Mitsubishi, and then Mitsubishi independently. The company also has plans to open a plant in Georgia and recently announced talks with Mercedes-Benz to jointly invest in electric-van manufacturing in Europe.
Despite the bullishness of early customers and the automotive press, as well as automakers wanting to do business with Rivian, Wall Street analysts are all over the lot about the company’s prospects.
The 16 analysts offering 12-month price forecasts for Rivian Automotive Inc. have a median target of $50.50 per share, with a high estimate of $83.00 and a low estimate of $27.00. The median estimate represents a +45.95% increase from the last price of $34.60.
