Shares in electric vehicle maker Rivian (RIVN) reversed today as it faces a probe into nearly 20,000 delivery vans because of seat belt safety concerns.
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The U.S. National Highway Traffic Safety Administration (NHTSA) said it was launching a preliminary evaluation into 17,198 Rivian electric delivery vans.
Frayed Cables
The probe focuses on the driver’s front outboard seat belt anchorage system, which uses a steel-braided cable to secure the belt to the seat frame.
According to the NHTSA’s Office of Defects Investigation (ODI), six complaints from vehicle owners described cables that frayed, broken, or unraveled, leaving drivers at risk of being unrestrained in a crash or sudden stop.
Rivian said it was looking to cooperate with the NHTSA on the investigation.
Regulators said there have been no reported crashes, fires, injuries, or fatalities linked to the potential defect. However, the NHTSA did warn that a weakened or detached seat belt anchorage could fail to meet required load capacity standards. That would create what it called “an unreasonable risk to motor vehicle safety.”
Investigators will now examine the integrity of the seat belt assembly, the installation method, and whether any design or manufacturing deficiencies contributed to the issue.
First Step
It marks the first step in the NHTSA’s defect process. If warranted, the next stage would be an engineering analysis and, if needed, a recall of the vehicles.
Earlier this month the U.S. National Highway Traffic Safety Administration (NHTSA) said Rivian was recalling 24,214 R1S and R1T electric vehicles due to a software defect that may cause its hands-free Highway Assist system to misidentify lead vehicles.
The issue affects certain 2025 Rivian vehicles running an older software version in the United States, the NHTSA said.
However, Rivian issued an over-the-air software update to fix the problem.
In February, it issued a recall for 17,260 of its electric vehicles over issues with headlights that increase the chance of a crash. The company noted that this recall concerns its 2025 R1S SUV and R1T pickup truck EVs.
Reputation Risk
The issue behind the Rivian recall was the low beams on affected EVs potentially not turning on when the vehicle is started in cold weather.
At a difficult time for the auto industry given tariff uncertainty and faltering consumer confidence, this spate of recalls is an unwelcome hit to brand reputation.
It is why legal and regulatory issues are such a key risk for auto companies and their investors – see below.
It appears that the NHTSA is ramping up its efforts to improve safety and transparency in the auto sector. It is also keen to respond faster to customer complaints.
Is RIVN a Good Stock to Buy Now?
On TipRanks, RIVN has a Hold consensus based on 7 Buy, 12 Hold and 3 Sell ratings. Its highest price target is $21. RIVN stock’s consensus price target is $13.98, implying an 8.15% downside.
