Rivian Stock Dips as U.S. Regulators Probe Seatbelt Safety

Shares of Rivian Automotive (RIVN) fell in recent trading after U.S. auto safety regulators launched an investigation into the company's electric delivery vans over potential seatbelt failures. The stock saw a decline of 1.90% on elevated trading volume as investors reacted to the news.

The National Highway Traffic Safety Administration (NHTSA) initiated a preliminary evaluation covering approximately . The probe follows multiple complaints from vehicle owners alleging that the steel-braided cables in the driver's seatbelt anchorage system were fraying, breaking, or unraveling. While no injuries have been reported, a failure of this component could leave a driver dangerously unrestrained in a crash.

According to , the investigation will assess the scope and severity of the potential defect. The agency warned that a compromised seatbelt anchorage could fail to meet federal safety standards, creating an "unreasonable risk to motor vehicle safety." Rivian has stated that it is cooperating fully with the investigation.

This inquiry adds another headwind for the electric vehicle maker, which is working to ramp up production and achieve profitability in a competitive market. A potential recall could result in significant costs and further scrutinize Rivian's manufacturing and quality control processes. The in a process that could escalate to an engineering analysis and a formal recall if the defect is deemed widespread and critical. Investors will be closely watching the outcome of the NHTSA's probe and its potential impact on Rivian's production targets and financial outlook.