Rivian Stock News and Forecast: RIVN set for more losses on recall news
- Rivian stock looks set for more losses as a recall hit sentiment.
- RIVN stock is already down nearly 70% year to date.
- Rivian does have a strong cash position, better than many EV competitors.
Rivian (RIVN) is once again making headlines over the weekend and for the wrong reasons, unfortunately. The company has been forced from reports to issue a recall on nearly 90% of all the vehicles it has produced.
Rivian stock news
Rivian is recalling about 13,000 vehicles due to a problem with a fastener connecting the vehicle's front upper control arm and the steering knuckle, according to a CBS report. The fastener may not be torqued enough.
"If you experience excessive noise, vibration or harshness from the front suspension, or a change in steering performance or feel, you should call immediately," Rivian CEO RJ Scaringe wrote in a letter to vehicle owners.
Recalls are not uncommon among car manufacturers, but this is likely to have a knock-on effect on Rivian sentiment as the sector remains under pressure. Rivian does have a strong cash position but still faces similar issues that all auto manufacturers are currently grappling with – a supply chain under stress, potential shortages of key components such as chips, as well as faltering consumer demand. A worrying mix. Rivian will announce its next quarterly earnings on November 9.
Rivian stock forecast
Rivian has been attempting to put in a bottoming formation, so the reaction to this latest news will be key. Support sits at $30.92 from the recent series of lows. $40 remains the first major resistance.
RIVN 1-day chart
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Author
Ivan Brian
FXStreet
Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.
