Rivian Automotive Inc (NASDAQ:RIVN) shares tumbled after the electric truck-maker recalled nearly all of its vehicles due to a potential fault, raising concerns it may not meet its 2023 production target.
Some 13,000 vehicles were recalled on Friday over worries that a loose fastener that may make the driver lose steering control.
The Amazon-backed company’s market value fell over US$2bn on Monday.
"We have greater concerns on 2023 production expectations," RBC Capital Markets commented.
Wedbush Securities, however, did say that the fault "should be easily resolved" and it does not think the recall would impact Rivian's production or delivery goals for 2022, though it is "a black eye for Rivian as the company is just now starting hit its stride".
Rivian shares plummeted more than 67% this year on a production outlook cut and a selloff in equities due to economic uncertainty.
The company started selling EVs in Q3 of last year and has delivered 13,198 vehicles to date.
A court in Georgia, where Rivian is building its US$5bn manufacturing plant, last week rejected a joint proposal by the state's Department of Economic Development and the company to secure local incentives for its project in the state, Reuters said.
Also this week, Amazon said it will invest more than €1bn ($974.8mln) over the next five years in electric vans, trucks and low-emission package hubs across Europe, with its largest electric van order being for 100,000 vehicles from Rivian through 2025.