Why Rivian Stock Is Trading Lower Today

Rivian Automotive Inc RIVN shares are trading lower Monday morning after the company announced a voluntary recall of most of its EVs.

According to a letter sent to customers from CEO R.J. Scaringe, Rivian has recalled some of its vehicles after the company identified fastener issues. In rare circumstances, some hardware could come loose on the vehicle and cause steering issues, Scaringe said in the letter. 

"While we’ve only seen seven reports potentially related to this issue across our fleet to date, even one is too many," Scaringe said.

Related Link: Rivian Recalls Nearly All Of EVs Deliveries To-Date Due to Fastener Issue

Wedbush analyst Dan Ives, who maintained an Outperform rating and a $45 price target on the stock, weighed in on the recall in a new note to clients, calling it a "black eye" for Rivian.

"It's a speed bump in the Rivian growth story in our opinion ... we maintain our OUTPERFORM and $45 price target and do not believe this recall impacts the company's 2022 production or delivery goals," Ives said.

RIVN Price Action: Rivian has a 52-week high of $179.47 and a 52-week low of $19.25.

The stock was down 7.63% at $31.42 at time of publication, according to Benzinga Pro.

Photo: courtesy of Rivian.