NHTSA Opens Probe Into 17,000-Plus Rivian Delivery Vans

The U.S. National Highway Traffic Safety Administration (NHTSA) on Wednesday reportedly opened a probe into 17,198 Rivian Automotive Inc. (RIVN) electric delivery vans.

The U.S. auto regulator’s probe concerns the driver’s front outboard seat belt anchorage system.

Rivian’s shares were down 0.4% in Wednesday’s opening trade. Retail sentiment around the company on Stocktwits trended in the ‘bullish’ territory.

The probe describes the issue as the fraying, breaking, or unraveling of the seat belt anchorage system, which comprises a steel braided cable, leaving occupants unrestrained in the event of a collision. The regulator noted that the affected Rivian electric delivery vans were produced between 2022 and 2023.

The NHTSA added that it received six reports of potential failures. A frayed cable can weaken the designed seat belt load capacity, presenting an unreasonable risk to motor vehicle safety, the regulator added. The Office of Defects Investigation (ODI) will focus on the integrity of the seat belt assembly, installation method, and identify potential changes needed in the design and manufacturing process.

Rivian’s electric delivery vans are primarily used by Amazon.com Inc. (AMZN),  which also owns a 13% stake in the company. As of June, the e-commerce giant had more than 25,000 electric delivery vans in service, and it has committed to expanding this to 100,000 vans from Rivian by 2030.

Amazon also stated that in 2024 alone, the company delivered over a billion packages to customers in the U.S. using its electric delivery vans.

RIVN stock is up 17% year-to-date and 30% in the past 12 months.

Also See: PayPal Enters Multi-Year Deal With Blue Owl Capital For Nearly $7 Billion Buy Now, Pay Later Receivables

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