• Rivian announced an urgent recall of some 13,000 vehicles on Friday.
• On Monday, the company's stock value dropped by 7% percent.
• Rivian says it still plans to deliver 25,000 vehicles, as promised, in 2022.
EV maker Rivian saw its share price fall dramatically yesterday following an urgent recall on Friday of 13,000 of its vehicles.
The cause? A structural manufacturing error was discovered with seven models. With these cases, it's possible that the front steering knuckle attachment was not tightened sufficiently. The company's CEO, R. J. Scaringe, explained that in rare cases, the fastener has come completely loose. He added that this was an exceptional case, but that it still required an urgent recall since steering can be affected, thus posing a safety risk.
In the wake of that recall announcement, Rivian's stock fell by 7 percent yesterday to close at $31.48. Year-to-date, the company’s share value is down 67 percent.
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A Rivian spokesperson told the Insider site that vehicle inspections at the company's service centres would be free and should only take a few minutes to complete.
This is a major bump on the road for Rivian, as a recall like this is not likely to reassure investors. Nonetheless, production is on the rise and the company is expected to meet its 2022 delivery target of 25,000 vehicles. The company also has 100,000 reservations on hand, so 2023 looks like a very important year for the company.
Provided that it can stay away from more of these kinds of setbacks.