Shares of Rivian Automotive Inc. declined after the electric-vehicle maker said it will recall about 13,000 vehicles it delivered to customers after discovering a minor structural defect.
The stock fell 7.3 percent to close at $31.48 Monday in New York, deepening a slide that had already wiped out two-thirds of its value this year through Friday’s close.
Rivian is making the recall because a fastener “may not have been sufficiently torqued,” CEO RJ Scaringe said in a letter to customers that was seen by Bloomberg News. The nut could loosen fully in “rare circumstances,” he added. Bloomberg News wrote about the recall on Oct. 7.
The company said it’s recalling almost all of the vehicles delivered to customers even though the issue was discovered only in seven, “out of an abundance of caution.” Rivian said it isn’t aware of any injuries resulting from the issue. The cost of the recall isn’t material, according to a person familiar with matter.
The recall is a setback for Rivian, which has only recently overcome production problems and parts shortages to deliver its EVs to customers in meaningful volumes. The company also had to deal with the fallout of an embarrassing U-turn in March to raise prices on pre-orders.