How is Rivian Addressing Its Delivery Van Seat Belt Issue?

Core Insights - Rivian Automotive, Inc. is recalling 34,824 electric delivery vans in the U.S. due to a defect in the seat belt system that may fail to properly restrain drivers, increasing injury risk in crashes [1][7] - The National Highway Traffic Safety Administration (NHTSA) initiated an investigation into 17,198 Rivian delivery vans after reports of fraying and breaking seat belt cables [2] - Rivian is implementing an over-the-air software update to detect improper seat belt use and will inspect and replace the driver's seat belt pretensioner assembly at no cost [3][7] Company Performance - Rivian's stock has outperformed the Zacks Automotive-Domestic industry year to date, with shares gaining 31.8% compared to the industry's growth of 14.2% [6] - From a valuation perspective, Rivian appears undervalued, trading at a forward price/sales ratio of 3.25, slightly lower than the industry's 3.36 [8] Earnings Estimates - The Zacks Consensus Estimate for Rivian's EPS for 2025 and 2026 has narrowed by 13 cents and 6 cents, respectively, over the past 30 days [10]