Did an Outdated Procedure Cause Rivian's 20K R1 Vehicle Recall?

Rivian Automotive, Inc. RIVN, a California-based electric vehicle manufacturer, is recalling 19,641 R1 vehicles that were previously serviced for a rear suspension issue. Per the National Highway Traffic Safety Administration (NHTSA) filing, the prior service may have led to improper reassembly of the rear suspension toe link joint.

Rivian will replace the rear toe link bolts at no cost to owners, per NHTSA. The recall applies to certain R1 models from the 2022-2025 model years, including 7,031 R1S SUVs and 12,610 R1T pickup trucks. All affected vehicles underwent rear suspension service between April 1, 2022, and March 10, 2025.

During that period, Rivian used a now-outdated service procedure to disassemble and reassemble the rear toe link joint. Vehicles serviced under this method may experience toe link separation, which could increase the risk of a crash. The recall documents do not list any warning indicators. As of the filing date, Rivian reported one related incident, a single-vehicle crash resulting in minor injuries.

Rivian will repair any potentially affected vehicles using its updated service process. Owner notifications are scheduled to begin on Feb. 24, 2026, when the relevant vehicle identification number will also become searchable. RIVN carries a Zacks Rank #4 (Sell) at present.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Recalls by Other Automakers

In December, U.S. legacy automaker Ford Motor Company F recalled more than 272,000 hybrid and EVs due to a software issue affecting the Integrated Parking Module. According to NHTSA, the integrated park module may fail to lock into the park position when the driver shifts into park. The loss of the parking function can cause the vehicle to roll away, increasing the risk of a crash. The recall affected 2022 -2026 F-150 Lightning models, 2024-2026 Mustang Mach-E models, and 2025-2026 Maverick models. 

In November, Honda Motor Co., Ltd. HMC, a Japanese automotive manufacturer, issued a recall for 406,290 vehicles in the United States due to a manufacturing defect that could potentially detach aluminium alloy wheels, per NHTSA. The recall affects select 2016-2021 Civic models equipped with 18-inch aluminium alloy wheels that were sold as accessories.

Rivian’s Price Performance, Valuation and Estimates

Rivian has outperformed the Zacks Automotive-Domestic industry in the past six months. RIVN shares have gained 50.7% compared with the industry’s growth of 40%. 

 
From a valuation perspective, Rivian appears overvalued. Going by its price/sales ratio, the company is trading at a forward sales multiple of 3.46, above the industry’s 3.35.

EPS Estimates Revision

The Zacks Consensus Estimate for 2025 loss per share has widened by 2 cents in the past 30 days. The Zacks Consensus Estimate for 2026 loss per share has widened by a penny in the past seven days. 

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This article originally published on Zacks Investment Research (zacks.com).

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