Rivian Automotive, Inc. RIVN is recalling 34,824 electric delivery vans in the United States because a defect in the seat belt system could prevent it from properly restraining the driver, posing a higher risk of injury in a crash, per a filing with the National Highway Traffic Safety Administration (NHTSA).
The company said that it has not received any reports of related incidents or injuries. The recall covers select EDV models from 2022 through 2025.
Per Reuters, NHTSA launched an initial investigation in September into 17,198 Rivian delivery vans after complaints that seat belt cables were fraying, breaking, or coming apart, potentially leaving drivers unsecured during a collision or abrupt stop.
Per the company, the problem arises when drivers repeatedly sit on an already-buckled seat belt, which can damage the pretensioner cable, the component responsible for tightening the belt during sudden deceleration or impact.
To address the issue, Rivian has rolled out an over-the-air software update that automatically detects improper seat belt use. The company will also inspect and replace the driver’s seat belt pretensioner assembly in affected vehicles at no cost. RIVN carries a Zacks Rank #2 (Buy) at present.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Recalls by Other Automakers
Stellantis N.V. STLA is recalling 72,509 Ram models in the United States because a software malfunction can cause the instrument cluster display to go dark, per the NHTSA. This comes after Stellantis’ November recall of 112,859 U.S. vehicles due to potential engine failures or engine-compartment fire risks. Stellantis’ November recall covered 2023-2025 Jeep Grand Cherokee 4XE and 2024–2025 Jeep Wrangler 4XE plug-in hybrids.
In September, Ford Motor Company F recalled 1.9 million vehicles worldwide over defective rear-view cameras, part of an ongoing issue that has prompted several previous recalls. The action covered multiple Ford models from the 2015–2019 model years, including the Lincoln MKC, Lincoln Navigator, Mustang, F-Series trucks (F-250 through F-550), Expedition, Edge, Transit, Transit Connect, Econoline, and Ranger. Ford issued a recall to fix the cameras that could show distorted, reversed or blank images, per an NHTSA filing.
Rivian’s Price Performance, Valuation and Estimates
Rivian has outperformed the Zacks Automotive-Domestic industry year to date. RIVN shares have gained 31.8% compared to the industry’s growth of 14.2%.
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From a valuation perspective, Rivian appears undervalued. Going by its price/sales ratio, the company is trading at a forward sales multiple of 3.25, slightly down from the industry’s 3.36.
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EPS Estimates Revision
The Zacks Consensus Estimate for 2025 and 2026 EPS has narrowed by 13 cents and 6 cents, respectively, in the past 30 days.
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Ford Motor Company (F) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).