Why Lordstown Motors Stock Dived by Almost 5% Today
Lordstown Motors (NASDAQ: RIDE) is not Rivian Automotive (NASDAQ: RIVN), but on Monday, it had to pay for the apparent mistakes made by its peer, which also makes electric vehicles (EVs). After Rivian announced a major recall, Lordstown stock fell by 4.8%, in sympathy.
Rivian's recall, due to a possible loose wheel fastener that could threaten the driver's control over steering, is a big deal on paper. It covers 12,212 vehicles produced from Dec. 10, 2021 to Sept. 27, 2022. That number comprises the vast bulk of the 13,198 deliveries the company has made so far this year, although it believes only roughly 1% of the recalled products might have the fastener problem.
The recall surely won't bring Rivian to a grinding halt. Still, it was a little too close for comfort for Lordstown investors. After all, their company also manufactures an EV pickup truck, the Endurance.
Source Fool.com
