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Rivian (RIVN) Recalls Almost all Vehicles Over Loose Fasteners
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Rivian Automotive (RIVN - Free Report) recently issued a massive recall of nearly all of its electric vehicles (EVs) because of a potential problem that could make a driver lose steering control.
Rivian announced that it is recalling about 13,000 vehicles built in late 2021 and through September of 2022 after it was discovered that a fastener connecting the front upper control arm and steering knuckle might come loose in some vehicles. The problem could lead to excess wheel tilt and, in some rare cases, separation of the wheel, disabling the driver to steer the vehicle and posing a severe threat to safety.
The affected customers were notified about the recall decision after seven reports potentially related to the structural issue of a torqued fastener came to light. However, no injuries were reported due to the malfunction.
Rivian hopes the recall’s financial impact will be negligible and has ensured to perform checks on all its vehicles within 30 days. Rivian customers can bring their vehicles to service centers or the company will send mobile repair vans to them to resolve the problem.
For a fledgling company like Rivian, which began manufacturing vehicles only a year ago, recalls have been quite frequent.
A while ago, Rivian recalled 207 vehicles, covering the R1T pickup and the R1S SUV, which recently went into serial production. Per the automaker’s statements to the National Highway Traffic Safety Association, the front seat belt anchors were probably inadequately attached. A probable glitch in the manufacturing process likely caused the problem.
In May, Rivian recalled about 500 2022 R1T electric pickup trucks in the United States over airbags that had problems deactivating when a child was in the front passenger seat.
The newbie EV maker has so far produced a total of 14,317 vehicles this year and the latest recall will significantly impact it.
Although Rivian had a thumping initial public offering last year in November, the automaker has been struggling to some extent to produce vehicles off its manufacturing floor without being affected by quality issues. The ongoing parts shortage is already impeding deliveries and recalls further add to the woes.
Shares of RIVN have lost 66.2% in the past year compared with its industry’s 25.7% decline.
Cummins has an expected earnings growth rate of 17.9% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 0.23% in the past 30 days.
Cummins’ earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed in two. CMI pulled off a trailing four-quarter earnings surprise of 1.49%, on average. The stock has declined 6.2% in the past year.
Lordstown has an expected earnings growth rate of 66.9% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant in the past 30 days.
Lordstown’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. RIDE pulled off a trailing four-quarter earnings surprise of 29.35%, on average. The stock has declined 65.3% in the past year.
Dorman has an expected earnings growth rate of 10.1% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant in the past 30 days.
Dorman’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed one. DORM pulled off a trailing four-quarter earnings surprise of 0.85%, on average. The stock has declined 11.4% in the past year.
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Rivian (RIVN) Recalls Almost all Vehicles Over Loose Fasteners
Rivian Automotive (RIVN - Free Report) recently issued a massive recall of nearly all of its electric vehicles (EVs) because of a potential problem that could make a driver lose steering control.
Rivian announced that it is recalling about 13,000 vehicles built in late 2021 and through September of 2022 after it was discovered that a fastener connecting the front upper control arm and steering knuckle might come loose in some vehicles. The problem could lead to excess wheel tilt and, in some rare cases, separation of the wheel, disabling the driver to steer the vehicle and posing a severe threat to safety.
The affected customers were notified about the recall decision after seven reports potentially related to the structural issue of a torqued fastener came to light. However, no injuries were reported due to the malfunction.
Rivian hopes the recall’s financial impact will be negligible and has ensured to perform checks on all its vehicles within 30 days. Rivian customers can bring their vehicles to service centers or the company will send mobile repair vans to them to resolve the problem.
For a fledgling company like Rivian, which began manufacturing vehicles only a year ago, recalls have been quite frequent.
A while ago, Rivian recalled 207 vehicles, covering the R1T pickup and the R1S SUV, which recently went into serial production. Per the automaker’s statements to the National Highway Traffic Safety Association, the front seat belt anchors were probably inadequately attached. A probable glitch in the manufacturing process likely caused the problem.
In May, Rivian recalled about 500 2022 R1T electric pickup trucks in the United States over airbags that had problems deactivating when a child was in the front passenger seat.
The newbie EV maker has so far produced a total of 14,317 vehicles this year and the latest recall will significantly impact it.
Although Rivian had a thumping initial public offering last year in November, the automaker has been struggling to some extent to produce vehicles off its manufacturing floor without being affected by quality issues. The ongoing parts shortage is already impeding deliveries and recalls further add to the woes.
Shares of RIVN have lost 66.2% in the past year compared with its industry’s 25.7% decline.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
RIVN carries a Zacks Rank #3 (Hold) currently.
Some better-ranked players in the auto space are Cummins Inc. (CMI - Free Report) , Lordstown Motors and Dorman Products (DORM - Free Report) , each carrying a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Cummins has an expected earnings growth rate of 17.9% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 0.23% in the past 30 days.
Cummins’ earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed in two. CMI pulled off a trailing four-quarter earnings surprise of 1.49%, on average. The stock has declined 6.2% in the past year.
Lordstown has an expected earnings growth rate of 66.9% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant in the past 30 days.
Lordstown’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. RIDE pulled off a trailing four-quarter earnings surprise of 29.35%, on average. The stock has declined 65.3% in the past year.
Dorman has an expected earnings growth rate of 10.1% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant in the past 30 days.
Dorman’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed one. DORM pulled off a trailing four-quarter earnings surprise of 0.85%, on average. The stock has declined 11.4% in the past year.