Rivian possibly could have handled this better??........Why Rivian Shares Plunged Monday

[kizamybute']

The recall, for an item that will cost them next to nothing as they simply need to get trucks in the door to literally put a torque wrench on a bolt and check its tightness (or send mobile service techs to owners) ended up costing Rivian & a lot of stock holders a chunk of money today.

Announcing a recall in this manner is always certain to have a negative impact on their stock value. No matter how simple of a fix it is, most won't read the details and just panic over a recall notice, most of which are generally pretty costly to the company. I don't know the answer to how they could have handled it better, but for such a simple fix, just seems like there's a better way that it could have been handled?

Disappointing from the standpoint that new investors jumped in last week after the happy news report of delivery numbers. They just wiped out that good feeling and confidence gain, and then some. With only 12,000 trucks delivered thus far, probably could have just contacted each owner and sent a mobile tech out to owners to check the bolt without the publicity of a "recall" which is almost always viewed as negative. They said it will literally take just a few minutes to check it. A single mobile tech could knock out probably 20 a day. Get 20 of them out there and that would be 400 a day. Could have covered all trucks within 30 days and been done with it. Or for something so simple, just tell customers to drop by the service center and have a couple of guys ready with the torque wrench to run out to each truck, record the VIN number to enter into the computer that it's been done and the owner wouldn't be too inconvenienced for fix that takes seconds, rather than minutes.

I guess this is part of the growing pains and judgment errors expected of a new company finding their way. As a huge Rivian fan since they started, was happy to see the positive last week, then disappointed to see that happy news of last week get wiped out so quickly. 100% rooting for this company to be hugely successful.

Why Rivian Shares Plunged Monday
www.fool.com/investing/2022/10/10/why-rivian-shares-plunged-monday/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article

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[Guy]

You only lose money if people sell today. It is a paper loss and the shares are volatile. As for the communication it was safety related so had to be publicized and I would be surprised if a mobile t ch could drive to 20 locations in a day repeatedly beating in mind how geographically spread out customers are. The organization at the SCs has been good from all accounts.

 

[ryanpei]

Hmmm.
Not sure I agree with you on this.

They can't NOT report it to NHSTA.
Once Rivian discovered/documented it, it is mandatory to report it.
Once NHSTA did the recall release the media picked it up.
And....blew it well out of proportion.

Rivian have mobile techs, pop-ups, and SC's all open longer than normal hours to fix this.
Not sure it could have been handled better.

 

[DaveA]

I enjoyed the discounted price personally…long term hold.

 

[mini2nut]

DaveA, how has R1T #2 been so far? Any issues?

 

[ads75]

More proof you can’t make everyone happy.

 

[DaveA]

DaveA, how has R12 #2 been so far? Any issues?

This one has been good so far. I do have mild wind noise above 60 from triangle window trim and being addressed next month via mobile. Other than that can’t complain.

 

[Donald Stanfield]

Let's suppose it takes two weeks to complete it on the sly. What if in those two weeks there is a failure of one of these bolts and someone gets killed? If Rivian didn't report this defect and instead handled it internally they would be done. They would be legally culpable beyond belief and their stock price would be the least of their concerns.

 

[SunDevil2213]

The recall, for an item that will cost them next to nothing as they simply need to get trucks in the door to literally put a torque wrench on a bolt and check its tightness (or send mobile service techs to owners) ended up costing a lot of Rivian stock holders a chunk of money today.

Announcing a recall in this manner is always certain to have a negative impact on their stock value. No matter how simple of a fix it is, most won't read the details and just panic over a recall notice, most of which are generally pretty costly to the company. I don't know the answer to how they could have handled it better, but for such a simple fix, just seems like there's a better way that it could have been handled.

Disappointing being that new investors jumped in last week after the report of delivery numbers. They just wiped out that good feeling and confidence gain, and then some. With only 12,000 trucks delivered thus far, probably could have just contacted each owner and sent a mobile tech out to owners to check the bolt without making a big deal out of it. They said it will literally take just a few minutes to check it. A single mobile tech could knock out probably 20 a day. Get 20 of them out there and that would be 400 a day. Could have covered all trucks within 30 days and been done with it. Or for something so simple, just tell customers to drop by the service center and have a couple of guys ready with the torque wrench to run out to each truck, record the VIN number to enter into the computer that it's been done and the owner wouldn't be too inconvenienced for fix that takes seconds, rather than minutes.

I guess this is part of the growing pains and judgment errors expected of a new company finding their way. Was just disappointed to see the happy news of last week get wiped out so quickly.

Why Rivian Shares Plunged Monday
www.fool.com/investing/2022/10/10/why-rivian-shares-plunged-monday/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article

Interesting how simplistic your worldview/opinion is, but to help you out a bit:

1. Finding a safety issue when you are a vehicle manufacturer isn't something you can just send a tech to "knock out probably 20 a day." There are mandatory NHSTA reporting requirements. As an owner, I'm glad that Rivian emailed me before anything was known to the general public to let me know what was happening, with a follow-up email from RJ with a bit more context. Their email included a comprehensive plan to have every affected truck checked and/or corrected within the next 30 days.
2. You don't approve of how Rivian handled it (as an actual owner, I do approve of how they handled it), but you can't offer a better way it could have been done. Your opinion in this regard thus ceases to mean anything.
3. As an owner and Rivian driver, my safety and that of my loved ones who ride in my vehicle is more important than your stock market gains or losses. No one cares how good you feel about the stock price. Rivian did the right thing - safety first.

 

[Rousie13]

The recall, for an item that will cost them next to nothing as they simply need to get trucks in the door to literally put a torque wrench on a bolt and check its tightness (or send mobile service techs to owners) ended up costing a lot of Rivian stock holders a chunk of money today.

Announcing a recall in this manner is always certain to have a negative impact on their stock value. No matter how simple of a fix it is, most won't read the details and just panic over a recall notice, most of which are generally pretty costly to the company. I don't know the answer to how they could have handled it better, but for such a simple fix, just seems like there's a better way that it could have been handled.

Disappointing being that new investors jumped in last week after the report of delivery numbers. They just wiped out that good feeling and confidence gain, and then some. With only 12,000 trucks delivered thus far, probably could have just contacted each owner and sent a mobile tech out to owners to check the bolt without making a big deal out of it. They said it will literally take just a few minutes to check it. A single mobile tech could knock out probably 20 a day. Get 20 of them out there and that would be 400 a day. Could have covered all trucks within 30 days and been done with it. Or for something so simple, just tell customers to drop by the service center and have a couple of guys ready with the torque wrench to run out to each truck, record the VIN number to enter into the computer that it's been done and the owner wouldn't be too inconvenienced for fix that takes seconds, rather than minutes.

I guess this is part of the growing pains and judgment errors expected of a new company finding their way. Was just disappointed to see the happy news of last week get wiped out so quickly.

Why Rivian Shares Plunged Monday
www.fool.com/investing/2022/10/10/why-rivian-shares-plunged-monday/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article

Haha!! Obviously you have never worked in the automotive industry. Rivian handled this very well and is being proactive before NHSTA forced them to do a recall…..that would have been bad for Rivian and it’s image.

 

[ORFynder]

I 100% believe in Rivian long term, which is why I bought more shares today.

 

[mini2nut]

This one has been good so far. I do have mild wind noise above 60 from triangle window trim and being addressed next month via mobile. Other than that can’t complain.

Great to hear!

 

[ads75]

The recall, for an item that will cost them next to nothing as they simply need to get trucks in the door to literally put a torque wrench on a bolt and check its tightness (or send mobile service techs to owners) ended up costing a lot of Rivian stock holders a chunk of money today.

Announcing a recall in this manner is always certain to have a negative impact on their stock value. No matter how simple of a fix it is, most won't read the details and just panic over a recall notice, most of which are generally pretty costly to the company. I don't know the answer to how they could have handled it better, but for such a simple fix, just seems like there's a better way that it could have been handled.

Disappointing being that new investors jumped in last week after the report of delivery numbers. They just wiped out that good feeling and confidence gain, and then some. With only 12,000 trucks delivered thus far, probably could have just contacted each owner and sent a mobile tech out to owners to check the bolt without making a big deal out of it. They said it will literally take just a few minutes to check it. A single mobile tech could knock out probably 20 a day. Get 20 of them out there and that would be 400 a day. Could have covered all trucks within 30 days and been done with it. Or for something so simple, just tell customers to drop by the service center and have a couple of guys ready with the torque wrench to run out to each truck, record the VIN number to enter into the computer that it's been done and the owner wouldn't be too inconvenienced for fix that takes seconds, rather than minutes.

I guess this is part of the growing pains and judgment errors expected of a new company finding their way. Was just disappointed to see the happy news of last week get wiped out so quickly.

Why Rivian Shares Plunged Monday
www.fool.com/investing/2022/10/10/why-rivian-shares-plunged-monday/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article

Almost every part of this post is only about stock price. It ignores what is best for customers, and what is safe for customers. The customers, and their passengers, and the drivers around them, aren’t just commodities that shouldn’t be considered because of the stock price.

 

[kizamybute']

Let's suppose it takes two weeks to complete it on the sly. What if in those two weeks there is a failure of one of these bolts and someone gets killed? If Rivian didn't report this defect and instead handled it internally they would be done. They would be legally culpable beyond belief and their stock price would be the least of their concerns.

I'm not saying they should have hid it by any means. But as they've done with most things. Reach out to the owners, exactly as they did, thus still keeping everyone safe. Announcing a recall is the only thing I was questioning if it possibly could have been handled differently. Just as with any recall, the manufacturer reaches out to the owner separately from just announcing a recall publicly. So nothing would have changed in terms of letting owners know immediately, again, as they did. Just the public display of such a simple fix was the only thing I was "thinking" maybe there could have been a better way to handle it. That's all. Of course, we all want everyone to be safe. Certainly not saying they shouldn't have said anything and swept it under the rug. Do everything they have done. Again, just the publicity of it for such a young company gaining their footing, I don't know if the actual public Recall Announcement itself was necessary? Just my two cents. I'm 100% rooting for Rivian, have been for what, 4 years now. With so few vehicles delivered, the spectacle of the announcement just didn't seem fully necessary, was all I was thinking.

 

[Zoidz]

...
Again, just the publicity of it for such a young company gaining their footing, I don't know if the actual public Recall Announcement itself was necessary?

As stated by others, it's not an option for Rivian to not report this. A front wheel separating from a control arm at highway speeds is "...unreasonable risk of death or injury in an accident..." to both the occupants and other drivers. Or is it preferable for Rivian to hide it and risk hundreds of deaths, such as the Ford Bronco rollover or Jeep exploding gas tanks? What effect would that have on stock price???

"The United States Code for Motor Vehicle Safety (Title 49, Chapter 301) defines motor vehicle
safety as “the performance of a motor vehicle or motor vehicle equipment in a way that
protects the public against unreasonable risk of accidents occurring because of the design,
construction, or performance of a motor vehicle, and against unreasonable risk of death
or injury in an accident, and includes nonoperational safety of a motor vehicle.”

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