Rivian’s massive recall latest reason for stock price slide

Posted on October 11, 2022

*Monday, Rivian’s share price fell sharply, ending the regular trading day with about a 7 1/4% decline, closing at $31.48. (WJBC file photo)*

NORMAL – The recall of nearly every electric vehicle made so far at the Rivian plant in Normal caused the company’s share price to fall sharply Monday.

Late Friday night, the electric truck and SUV maker said it is recalling more than 12,000 vehicles with issues that could affect the steering control. Specifically, a fastener connecting the vehicles’ front upper-control arm and steering knuckle may not be torqued enough, according to the company.

Monday, Rivian’s share price fell sharply, ending the regular trading day with about a 7 1/4% decline, closing at $31.48.

Rivian’s stock price has plummeted from a peak of $179.47 last November 16, shortly after the time of its initial public offering (IPO). Its lowest point was $19.25 per share on May 11, 2022.

Since Rivian went public, the company has been saddled with numerous challenges including a shortage of semiconductors (chips), inflation, and supply chain slowdowns made worse by Russia’s war in Ukraine.

As recently as last Wednesday, Rivian announced its third quarter production numbers are in line with expectations to make 25,000 vehicles by the end of this year.

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