Rivian sinks after the EV maker recalls 13,000 vehicles for potential steering-safety issue

• Rivian dropped as much as 11% Monday after EV maker said it was voluntarily recalling 13,000 vehicles.
• The company's CEO said that fastener “may not have been sufficiently torqued” during production.
• The recall affects nearly all of the vehicles Rivian has delivered year to date.

Rivian shares sharply dropped Monday after the electric vehicle maker said it was acting with “urgency” in voluntarily recalling thousands of vehicles over a possible steering-related hazard. 

The company late Friday recalled 13,000 of its vehicles after a structural manufacturing error was discovered in seven cars. The fastener to the front steering knuckle “may not have been sufficiently torqued” when the vehicles were manufactured, Chief Executive Officer RJ Scaringe wrote in an email to staff that was reviewed by Insider. 

The company's stock fell as much as 11% to $33.30 in premarket trading before paring the loss to 7%. The shares this year have tumbled by about 67%. 

“In rare circumstances, the fastener has loosened fully,” Scaringe wrote. “I want to reiterate that this is extremely rare, but it does reinforce why we are acting with urgency and caution.” 

Source: https://markets.businessinsider.com/news/stocks/rivian-stock-prices-recall-13000-vehicles-steering-fastener-safety-rivn-2022-10