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Tesla competitor Rivian recalls 13,000 vehicles

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Tesla competitor Rivian recalled 13,000 vehicles on Friday after a steering wheel error was discovered. The front steering wheel attachment “may not have been tightened enough,” CEO RJ Scaringe wrote to staff. A Rivian spokesperson said the recall was voluntary and the cost would not be material. Something is loading.

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Tesla challenger Rivian Automotive, Inc. will recall 13,000 of its vehicles after a structural manufacturing error was discovered in seven cars the company announced in emails to customers and staff.

Insider reviewed an internal email that General Manager RJ Scaringe wrote to staff on Friday, indicating that the front steering wheel attachment “may not have been tightened enough” when the vehicles were manufactured.

“In rare circumstances, the tether has come completely loose,” Scaringe wrote. “I want to reiterate that this is extremely rare, but it reinforces why we are acting with urgency and caution.”

In a statement to Insider, a Rivian spokesperson said the recall was voluntary and the cost to make the change was “not material.” Vehicle checkups at a Rivian service center would take minutes and be free, the spokesperson said.

“The recall will not impact production as Rivian has stopped producing vehicles with insufficiently torqued steering knuckle fasteners, so this issue is not expected to persist,” Rivian’s spokesperson told Insider.

Rivian, a company backed by Amazon and Ford, has faced challenges this year, including customer backlash after it raised its prices for pre-orders – and backtracked – in March 2022. The company also laid off 6% of its workforce and has seen a slew of shareholder lawsuits claiming the company has artificially inflated its stock price and undervalued its cars.

After a tough start to the year, the company saw a 47% increase in car deliveries in the third quarter compared to the second quarter.

However, analyst estimates show that Rivian posted more than $3 billion in losses in the first half of 2022, Markets Insider reported.

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