Did an Outdated Procedure Cause Rivian's 20K R1 Vehicle Recall?

Core Insights - Rivian Automotive, Inc. is recalling 19,641 R1 vehicles due to a rear suspension issue that may have resulted from improper reassembly during prior service [1][8] Group 1: Recall Details - The recall affects specific R1 models from the 2022-2025 model years, including 7,031 R1S SUVs and 12,610 R1T pickup trucks [2] - Rivian will replace the rear toe link bolts at no cost to the vehicle owners [2] - The outdated service procedure used from April 1, 2022, to March 10, 2025, may lead to toe link separation, increasing the risk of a crash [3][8] Group 2: Incident Reports - As of the filing date, there has been one reported incident related to this issue, which involved a single-vehicle crash resulting in minor injuries [3] Group 3: Repair and Notification - Rivian plans to repair the affected vehicles using an updated service process, with owner notifications scheduled to begin on February 24, 2026 [4] Group 4: Market Performance - Rivian has outperformed the Zacks Automotive-Domestic industry over the past six months, with RIVN shares gaining 50.7% compared to the industry's 40% growth [7] Group 5: Financial Estimates - The Zacks Consensus Estimate for 2025 loss per share has widened by 2 cents in the past 30 days, while the estimate for 2026 loss per share has widened by a penny in the past week [10] - Rivian appears overvalued based on its price/sales ratio, trading at a forward sales multiple of 3.46, above the industry's 3.35 [11]