Rivian Delays Vehicle Deliveries Due to Software Issues

Source: James Yarbrough / Shutterstock.com

It appears that Rivian (NASDAQ:RIVN) has run into a bit of a delivery issue. Drive Tesla Canada has reported that the electric vehicle (EV) company has temporarily halted deliveries in Canada. This news was echoed by Canadian customers waiting to take delivery, who stated that R1T and R1S deliveries in British Columbia, Alberta and Ontario were paused due to a software issue. Despite this hiccup, RIVN stock is up 2.5% today.

Drive Tesla reached out to Rivian, who confirmed that the delays were enacted “to ensure those vehicles receive an important software update first.” Rivian did not provide any further details, such as when the issue would be fixed, the number of affected vehicles, or when the vehicles would be delivered.

RIVN Stock: Rivian Delays Deliveries in Canada

The publication also added that there have been no reports of delayed or paused deliveries in the U.S. As a result, the Canadian delay “likely has to do with a Transport Canada regulatory issue that needs to be corrected, suggesting an over-the-air (OTA) software update will be sent out to existing owners to correct it.”

Shareholders are hoping the issue won’t dampen the unveiling of Rivian’s R2 SUV on March 7. The R2 is expected to be Rivian’s least expensive vehicle, with an estimated price between $40,000 and $60,000 depending on the trim of the vehicle and other add-ons. Car and Driver expects a maximum range of 300 miles. The publication also expects a sneak peek of a potential R2 pickup truck later this year. A Rivian R2 patent viewed by Electrek shows that the vehicle could possibly resemble a compact version of the R1S with smaller headlights. Still, deliveries of the R2 aren’t expected to begin until 2026.

The release of the R2 will be a major stepping stone for the emerging EV company. CEO RJ Scaringe noted that the launch of the R2 would be strategically similar to the launch of Tesla’s (NASDAQ:TSLA) affordable Model 3.

Meanwhile, Rivian has confirmed that it will report its fourth quarter and 2023 full-year earnings on Feb. 21 after the market close. During the quarter, Rivian produced 17,541 vehicles and delivered 13,972 of them.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.  

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

Source link

Share with your friends!

Products You May Like

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the latest stocks updates
straight to your inbox

Subscribe to our mailing list and get interesting stuff and updates to your email inbox.

Thank you for subscribing.

Something went wrong.

x Logo: Shield Security
This Site Is Protected By
Shield Security