Rivian Stock Drops Following Recall of Over 24,000 Vehicles
IRVINE, CA – September 12, 2025 – Rivian Automotive shares fell today after teh electric vehicle manufacturer announced a recall of 24,274 vehicles due to potential safety issues. The recall impacts certain 2022-2024 R1T trucks, R1S SUVs, and EDV delivery vans.
According to a National Highway Traffic Safety Administration (NHTSA) filing, the recall stems from two separate issues. Approximately 20,844 vehicles are being recalled due to perhaps loose fasteners in the front suspension, which could lead to a loss of steering control. the remaining 3,430 vehicles are affected by a software error that may prevent the automatic emergency braking system from functioning as intended.
Rivian stated it is indeed unaware of any injuries or accidents related to these issues. The company plans to notify owners and provide free repairs. Owners will be instructed to bring their vehicles to a Rivian service center to have the fasteners inspected and tightened, or to receive a software update to address the automatic emergency braking concern.
This recall comes at a critical juncture for Rivian, as the company works to ramp up production and achieve profitability. the launch of the more affordable R2 model, priced around $40,000, is seen as vital to expanding Rivian’s customer base beyond the premium segment and competing with market leaders like Tesla’s Model Y.
However, the EV industry faces increasing competition and a potential price war as more affordable models enter the market. Moreover, changes to federal policies, including the potential expiration of EV tax credits and the rollback of emission standards penalties under the Trump administration, pose headwinds for US EV companies. These policy shifts could impact revenue streams from regulatory credits, which previously contributed to profitability for companies like Rivian and Tesla.
Rivian aims to attract a larger customer base and drive higher production volumes to achieve economies of scale and improve gross margins. The company is led by CEO RJ Scaringe and has been navigating a challenging landscape for EV startups, often burdened with losses and cash burn.
