Rivian Shares Plunge After Recall Announcement Affecting 13,000 Vehicles
• 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.
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