Electric vehicle start-up Rivian Automotive just passed another milestone as an auto maker. It had its first vehicle recall.
Rivian (ticker: RIVN) is recalling 502 electric trucks to correct an air bag issue. The recall was posted recently on the National Highway Traffic Safety Administration website, where car owners, investors or any other stakeholders can get recall updates.
Rivian has produced roughly 5,000 units since it started production.
The system "may not deactivate the air bag when a child or child seat occupies the front passenger seat," reads the notice. Rivian will replace the front seat. Rivian didn't immediately respond to a request for comment about the cost of the recall.
Recalls aren't usually investor-level events, but there has been more interest in recalls lately as more sophisticated electric vehicles -- mainly built by Tesla $(TSLA)$ -- are sold in the U.S.
Tesla has recalled more than 2.2 million vehicles in 2022, but the vast majority of issues appear minor and are fixed with a software update delivered over the air. (NHTSA still requires auto makers to classify the issues as recalls.)
Overall, almost 10 million vehicles have been recalled in the U.S. so far this year. Ford Motor $(F)$, General Motors $(GM)$ and Tesla are the three auto makers that have each recalled more than one million vehicles.
Investors aren't focused on the Rivian recall in Thursday's trading. Shares are up more than 20% around midday. The S&P 500 and Dow Jones Industrial Average are down about 0.2% and 0.6%, respectively.
Rivian stock popped after the company slowed its spending and cash burn during the first quarter. Investors were relived by the spending revelation. They needed good news. Coming into Thursday trading, Rivian stock was down roughly 80% year to date.
The company still has about $17 billion in cash on its books and believes it is fully funded through 2025.
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