"Financial losses have mounted, with billions burned annually, forcing repeated capital raises and workforce cuts. Yet, amid these headwinds, Rivian's stock has shown flickers of resilience. Year-to-date, RIVN stock is up a modest 6%, reflecting cautious investor optimism, but shares traded 47% above the late-2024 lows it plumbed after disappointing deliveries and margin pressures. That rebound, fueled by hopes of cost efficiencies, new partnerships, and a new EV model, now hangs in the balance."
"The latest blow came the other day when Rivian announced a massive recall of over 24,000 R1S SUVs and R1T trucks from the 2025 model year. The culprit was a software defect in the Highway Assist system, an SAE Level 2 driver-assistance feature that misidentified lead vehicles - like confusing a slow-moving car for a faster one - potentially leading to loss of control and crashes."
Rivian Automotive has struggled since its 2021 debut with supply chain issues, production delays, and intense competition that hinder scaling. The company has incurred billions in annual losses, prompting capital raises and workforce reductions. RIVN stock showed modest year-to-date gains, fueled by hopes for cost efficiencies, partnerships, and a new model. Rivian issued a recall of over 24,000 2025 R1S and R1T vehicles because a Highway Assist software defect could misidentify lead vehicles and risk loss of control. An over-the-air update reportedly remedied most affected vehicles. The company plans a compact R2 SUV launch in early 2026 to boost volumes, but the recall intensifies quality and production risks.
Read at 24/7 Wall St.
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