U.S. Opens Probe into Rivian Electric Vehicles Over Safety Issue
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: Newsfilter
- Probe Initiation: The U.S. National Highway Traffic Safety Administration (NHTSA) has opened a preliminary investigation into 114,922 Rivian electric vehicles, focusing on the rear toe link issue in R1S and R1T models, indicating potential safety management concerns for the company.
- Safety Risks: Reports indicate that the left rear toe link may separate while driving, causing vehicles to swerve across multiple lanes, with one incident resulting in a collision with an adjacent vehicle and roadside barrier, highlighting the severity of this issue.
- Repair Procedure Evaluation: NHTSA will assess the sensitivity of the rear toe link joint under foreseeable road and service conditions and review Rivian's current repair procedures, which could impact the company's brand reputation and future sales.
- Recall History: In January, Rivian recalled nearly 20,000 R1S and R1T electric vehicles due to incorrectly assembled rear toe links, revealing challenges in the company's quality control that may negatively affect consumer confidence.
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Analyst Views on RIVN
Wall Street analysts forecast RIVN stock price to rise
18 Analyst Rating
8 Buy
7 Hold
3 Sell
Moderate Buy
Current: 15.200
Low
10.00
Averages
17.78
High
25.00
Current: 15.200
Low
10.00
Averages
17.78
High
25.00
About RIVN
Rivian Automotive, Inc. is an automotive technology company, which is engaged in developing and manufacturing category-defining electric vehicles (EVs) as well as vertically integrated technologies and services. The Company's R1 platform consists of two vehicles: the R1T, a two-row five-passenger pickup truck, and the R1S, a three-row seven-passenger sport utility vehicle (SUV). In the commercial market, the Company offers a Rivian Commercial Vehicle (RCV) platform. The vehicle on this platform is the Electric Delivery Van (EDV), designed and engineered by Rivian in collaboration with Amazon. The Company also offers FleetOS, its proprietary, end-to-end centralized fleet management subscription platform. It also offers a variety of services, including vehicle repair and maintenance, financing, insurance, joint venture, software subscriptions, and vehicle accessories, among others. Its other services include vehicle electrical architecture and software development services, and more.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Potential: With advancements in AI technology, the autonomous driving market is expected to grow rapidly, with long-term value potentially reaching $10 trillion, aligning Rivian's investment direction with this trend, even as it strives to scale its automotive manufacturing.
- Uber Partnership Validation: Uber's $1.25 billion deal to purchase 50,000 R2 SUVs from Rivian underscores Rivian's potential in the future robotaxi industry, despite its brand recognition lagging behind Tesla.
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- Industry Competition Analysis: While Rivian lacks the brand recognition and scale of Tesla, its investments in AI and autonomy, coupled with the partnership with Uber, indicate its potential to become a significant player in the future robotaxi industry.
- Market Opportunity Assessment: With Rivian's shares down nearly 25% since the beginning of 2026, investors now have a rare opportunity to buy into this emerging AI stock at a substantial discount, especially as the global robotaxi market is projected to reach $10 trillion.
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- Optimistic Future Outlook: Rivian's R2 model is expected to have a range of 330 miles with a starting price of approximately $58,000, with production costs projected to be half that of the R1 model, which could significantly boost the company's profitability if successfully launched.
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- New Model Outlook: Rivian confirmed that order invitations will be sent to reservation holders on June 9, with demo drives starting, and the first available model being the Performance trim, estimated to have a range of 330 miles and a starting price of about $58,000, which is expected to be a profitable venture for the company.
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- Surge in Trading Volume: The trading volume reached 56.6 million shares, about twice the three-month average of 28.4 million shares, reflecting a significant increase in investor interest, which may signal further stock price volatility ahead.
- R2 SUV Outlook: Rivian confirmed that order invitations will be sent to reservation holders on June 9, with demo drives commencing, and the first model, the Performance trim, is expected to have a range of 330 miles and a starting price of approximately $58,000, likely generating substantial profits for the company.
- Competitive Market Pressure: Despite the upcoming R2 SUV launch, analysts noted that the Motley Fool's Stock Advisor team did not include Rivian among the current best stocks to buy, indicating a cautious outlook on its long-term performance in a competitive market.
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- Bloom Energy Options Activity: Bloom Energy Corp (Ticker: BE) has seen an options trading volume of 98,414 contracts today, representing approximately 9.8 million shares, which constitutes about 99.8% of its average daily trading volume over the past month, indicating strong market interest in its future performance.
- High Volume Put Options: Within Bloom Energy, the $260 strike put option has been particularly active, with 9,445 contracts traded today, equating to approximately 944,500 underlying shares, reflecting investor expectations of potential declines in the stock's future value.
- Rivian Options Activity: Rivian Automotive Inc (Ticker: RIVN) has recorded an options trading volume of 270,363 contracts today, representing around 27 million shares, or about 86.9% of its average daily trading volume over the past month, showcasing significant market interest in its stock.
- Active Call Options: For Rivian, the $16 strike call option has seen notable activity, with 16,523 contracts traded today, representing approximately 1.7 million underlying shares, suggesting a bullish outlook among investors regarding the stock's future performance.
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