Rivian recalls 98,828 vehicles over camera software defect

Rivian Automotive is recalling 98,828 vehicles to address a rearview camera software issue. The fix will be deployed through an over-the-air update as regulators and investors focus on the company's operational execution.

The recall comes alongside extended stock weakness. Rivian's share price return is down 3.71% over the past seven days and has dropped 23.80% year to date. Over a one-year period, the total shareholder return is 3.02% lower.

Operationally, Rivian management aims to improve margins through its upcoming R2 platform. Supplier contracts and component sourcing secured for R2 are expected to cut the bill of materials by nearly 50% compared with the R1 platform, significantly reducing unit manufacturing costs.

The company trades at 3.6 times sales, compared with an average of 0.6 times for the US auto industry and 0.5 times among direct peers, while ongoing cash burn and execution hurdles continue to weigh on market sentiment.