A California-based electric car maker’s stock tumbled Monday upon the heels of a Friday announcement that the company was recalling almost all of the vehicles it has produced this year.
The Rivian Automotive recall focused on a loose nut on the vehicles’ front suspension, according to CNN.
Rivian said that no injuries have been reported and that the flaw can be fixed quickly.
However, the recall damaged the Amazon-backed company to the point where its stock had dropped almost 10 percent in Monday morning trading. The recall impacts about 13,000 of the 13,198 vehicles Rivian has delivered, Reuters reported Monday.
The company’s vehicles start at about $79,500, according to a Reuters report from March.
The Reuters report Monday said investors feared Rivian won’t make its production goals for the year.
“We have greater concerns on 2023 production expectations,” RBC Capital Markets said in a note on Monday, according to Reuters.
Rivian went public last year, and its market value roared past that of Ford and General Motors to become the second-most valuable U.S. automaker behind Tesla, according to The Associated Press.
But that is no longer the case: The company’s stock is down 67 percent this year, the AP reported.
Dan Ives, an analyst with the financial securities firm Wedbush, said in a Monday morning note that Rivian is “under a bright spotlight” and any further stumbles could badly damage its image.
“This is a black eye for Rivian,” Ives wrote, according to CNBC.
I wonder if my Rivian stock will also be recalled for a repair.
— Daniel Berk (@danielcberk) October 10, 2022
Rivian has said it hopes to complete the inspection and repairs within the next 30 days, according to the AP.
In the spring, Rivian recalled about 500 trucks, citing an air-bag issue that could injure a child in the event of a crash, according to The Washington Post.
At that time, Ives was very harsh in his assessment of the company.
“Let’s call it like it is, Rivian has been a train wreck since its IPO and an overall black eye for the EV industry,” he wrote in May, according to the Post.
“The company has potential to change the EV and auto industry with much hype coming out of the gates, and instead has been a massive disappointment,” he wrote.
He also noted at the time that it appeared Rivian may have put its troubles behind it and wrote “it does finally appear that Rivian is on the right track.”
This article appeared originally on The Western Journal.