NHTSA Probes 115,000 Rivian EVs for Rear Toe Link Failures, Citing Collision Risk
RIVN sits 27% above its 52-week low of $11.57.
Summary
The U.S. auto safety regulator (NHTSA) has opened a preliminary probe into nearly 115,000 Rivian R1S and R1T electric vehicles. The investigation focuses on the rear toe link, which has reportedly separated while driving, causing vehicles to swerve and leading to at least one collision. This follows a previous recall in January for approximately 20,000 Rivian vehicles due to incorrectly assembled rear toe links, indicating a recurring or related issue. A widespread safety defect in a critical component like the rear toe link poses a serious risk to Rivian's brand reputation and could lead to substantial recall costs, potential fines, and impact future sales. The outcome of NHTSA's preliminary probe will determine if a broader recall or further regulatory action is required.
At the time of this announcement, RIVN was trading at $14.66 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $18.5B. The 52-week trading range was $11.57 to $22.69. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.