Rivian Makes Investors Gundah After Pulling More Than 12 Thousands Of EV Products

Rivian lost 7.3 percent of revenue (photo: Twitter Rivian)

JAKARTA - Rivian Automotive Inc shares reportedly closed 7.3 percent lower on Monday after the electric vehicle manufacturer recalled almost all of its vehicles.

This incident certainly raises concerns from the investor side, that the company may not be able to meet the 2023 production target.

Rivian's market capitalization is said to have fallen by more than US$2 billion (Rp29 trillion) to US$ 31.1 billion in one day. This amount is very small when compared to other brands such as Ford Motor Co and General Motors Co, which are worth US$45.67 billion and US$47.08 billion, respectively.

"We have greater concerns about the 2023 production expectations," RBC Capital Markets said on Monday, October 10.

Rivian has attracted more than 12 thousand EV productions due to loose bindings that cause drivers to lose control of their steering.

This recall includes certain R1T 2022 pickup trucks, R1S SUVs, and electric delivery vans (EDVs) it built for Amazon. Rivian alone produced a total of 14,317 vehicles in the first three quarters of 2022 and delivered more than 12,000.

However, with the withdrawal of almost all of its products, it ultimately affects almost every vehicle that Rivian has produced this year.

On the other hand, Amazon has invested more than 1 billion euros (IDR 14.9 trillion) over the next five years in production of electric vans, trucks, and other low-emission vehicles across Europe.

Amazon's largest electric van order in the near future is for 100,000 vehicles from Rivian Automotive Inc through 2025.