100s of titles, one news app for just $10 a month.
Dive Deeper:
Rivian Announces Q1 2022 Results, Posts $1.6 Billion Net Loss
The company built 2,553 vehicles in the first quarter and says it maintains its 2022 production target of 25,000 units…
Rivian Recalls 502 EVs: All You Need To Know
Rivian Automotive, Inc (NASDAQ: RIVN), for the first time, recalled 502 battery-powered pickup trucks over potentially faulty airbags that could pose…
UPDATE: Rivian Recalls 502 R1T Trucks For Airbag "Child" Sensor Issue
Rivian is recalling a small number of its electric trucks due to improper calibration of seat sensors that deactivate the…
Rivian Gradually Increases EV Production Beyond 1,000 Per Month
In Q1 2022, Rivian produced 2,553 EVs and delivered 1,227, while as of May 9, its cumulative production reached about…
One subscription that gives you access to news from hundreds of sites
Amazon Key To Rivian's Strategy, EV Maker's Cash Burn In Question, Says Morgan Stanley Analyst
Rivian Automotive Inc’s (NASDAQ: RIVN) highly ambitious and capital intensive plan to ramp up production after initially missing production and…
Rivian Is A 'Show-Me-The-Money' Story But Has 'More Pieces In Place' Than Peers: Analysts React To Q1 Earnings
Electric vehicle company Rivian Automotive Inc (NASDAQ: RIVN) reported first-quarter production of 2,553 vehicles. The company delivered 1,227 vehicles in the…
Get all your news in one place
Latest Business news:
Bill Gates reveals why he doesn’t own cryptocurrency
Cryptocurrencies have seen around $1 trillion wiped off their value in 2022
Read news from The Economist, FT, Bloomberg and more, with one subscription
Learn More
Hedge Fund Up 138% This Year Is Turning Bullish on China Stocks
A fund manager who made triple-digit gains by hedging risks in Chinese equities is now turning bullish on mainland shares.
Apple Analyst Hints At Imminent Launch Of Next Iteration Of This Key Product
Apple, Inc. (NASDAQ: AAPL) is expected to have a strong launch year in 2022.
Tesla Drops To Number 2: Is Cathie Wood's Ark Invest Losing Confidence In Its Favorite Stock?
Tesla, Inc. (NASDAQ: TSLA) stock has been going downhill since peaking in early November 2021.
Survivor, Bachelor in Paradise, Love Island: How Fiji is cashing in on reality TV favourites
Fiji is a small nation looking for big investment and it is working hard to make film and reality television…
From analysis to good news, read the world’s best news in one place
What do Elon Musk and Jeff Bezos have in common? An unhealthy Twitter habit
They are two of the world’s richest people, and both are obsessed with space travel, but they use social media…
The Stats Guy: What does tourism in Australia look like now that travellers are returning?
The tourism sector is preparing for a comeback. So, what is the state of play in the sector and what…

Rivian recalls 500 EV pickup trucks due to front passenger seat air bag defect

By Robert Channick

Rivian issued a voluntary recall this week for 500 of its R1T pickup trucks for a sensor defect that could cause air bags to improperly deploy when a child is in the front passenger seat.

Rivian has built 5,000 EVs to date and is on track to produce 25,000 vehicles this year. The startup electric truck manufacturer, which has struggled to keep up with early demand, announced its production progress — and the recall — in its first quarter earnings report Wednesday.

“Rivian has determined that on certain R1T vehicles, the front passenger seat may not deactivate the front passenger air bag as required if a child seat or child is in that seat,” Rivian spokesperson Peebles Squire said in an emailed statement Thursday. “In the event of a crash which deploys the front passenger air bag, a seat with this improper calibration may increase the risk of injury for any child or child seat occupant sitting in the seat.”

The company is notifying customers impacted by the recall and replacing the front passenger seat at no charge.

California-based Rivian launched production in October at a former Mitsubishi plant in Normal, Illinois, where more than 5,200 employees are building thousands of R1T pickups and R1S SUVs, along with two commercial vehicles for Amazon, an early Rivian investor that ordered 100,000 delivery vans.

Rivian, which went public in November, is sitting on $17 billion in cash and has 90,000 orders for its R1 consumer EVs, the company said Wednesday. The company has received about 10,000 R1 preorders since implementing a price increase March 1, fetching an average of more than $93,000 per vehicle.

But supply chain issues and a slow production ramp-up have hammered Rivian’s stock price this year as it struggles to keep up with demand.

“We are encouraged by the acceleration of our demonstrated production rate,” Rivian CEO and founder R.J. Scaringe said during an investor call Wednesday. “These demonstrated production rates, which we expect to continue to increase, coupled with our current supply chain outlook, give us confidence in our ability to hit our targets for 2022.”

The Normal plant has an annual production capacity of 150,000 vehicles. It was positioned to build 50,000 vehicles in 2022, but global supply chain issues, including a semiconductor shortage that has roiled the auto industry, cut the first-year target in half. Rivian produced 2,553 vehicles during the first quarter, with Amazon electric delivery vans accounting for about a third of that total, Scaringe said.

Scaringe said the Normal plant will move to a two-shift operation this year, and that suppliers will be able to keep up with an accelerated production schedule.

“We’ve worked with those suppliers to ramp their production,” Scaringe said. “We have clear line of sight to them being able to keep up with our continued ramp in our facility.”

Construction has begun to expand the 3.3 million-square-foot Normal factory to 4 million square feet by the fourth quarter, which will increase production capacity to 200,000 vehicles per year. Rivian has also signed an agreement to build a second plant near Atlanta where it plans to build a lower-cost EV called R2 beginning in 2025.

When Rivian went public, investors were betting the EV startup would become the Tesla of trucks, pushing its valuation north of $100 billion. But the stock, which hit a high of $179.47 in mid-November, has fallen sharply this year amid the slow ramp-up. Ford, another early Rivian investor, sold 8 million of its 102 million shares Monday after the initial public offering lockup expired, getting $26.80 per share, according to regulatory filings.

The stock closed at a new low Wednesday of $20.60 per share — before the earnings announcement.

Despite the recall, investors appeared somewhat assuaged by the production outlook, with Rivian’s stock closing at $24.30 per share Thursday, a nearly 18% gain.

What is inkl?
The world’s most important news, from 100+ trusted global sources, in one place.
Morning Edition
Your daily
news overview

Morning Edition ensures you start your day well informed.

No paywalls, no clickbait, no ads
Enjoy beautiful reading

Content is only half the story. The world's best news experience is free from distraction: ad-free, clickbait-free, and beautifully designed.

Expert Curation
The news you need to know

Stories are ranked by proprietary algorithms based on importance and curated by real news journalists to ensure that you receive the most important stories as they break.

Dive Deeper:
Rivian Announces Q1 2022 Results, Posts $1.6 Billion Net Loss
The company built 2,553 vehicles in the first quarter and says it maintains its 2022 production target of 25,000 units…
Rivian Recalls 502 EVs: All You Need To Know
Rivian Automotive, Inc (NASDAQ: RIVN), for the first time, recalled 502 battery-powered pickup trucks over potentially faulty airbags that could pose…
UPDATE: Rivian Recalls 502 R1T Trucks For Airbag "Child" Sensor Issue
Rivian is recalling a small number of its electric trucks due to improper calibration of seat sensors that deactivate the…
Rivian Gradually Increases EV Production Beyond 1,000 Per Month
In Q1 2022, Rivian produced 2,553 EVs and delivered 1,227, while as of May 9, its cumulative production reached about…
One subscription that gives you access to news from hundreds of sites
Amazon Key To Rivian's Strategy, EV Maker's Cash Burn In Question, Says Morgan Stanley Analyst
Rivian Automotive Inc’s (NASDAQ: RIVN) highly ambitious and capital intensive plan to ramp up production after initially missing production and…
Rivian Is A 'Show-Me-The-Money' Story But Has 'More Pieces In Place' Than Peers: Analysts React To Q1 Earnings
Electric vehicle company Rivian Automotive Inc (NASDAQ: RIVN) reported first-quarter production of 2,553 vehicles. The company delivered 1,227 vehicles in the…
Get all your news in one place