I know my metaphors can be a little out here but stick with me here… my first car was a puke colored ‘88 Honda Accord that would randomly shut off at red lights. Kept me guessing every trip. (Will I make it to work or will I be pushing this thing across three lanes of traffic? Who knows!) But at least that car only cost me $800. Well, just like my first depressing car, Rivian’s stock has seen the same heart-stopping unpredictability… except this ride costs billions, and I’m not convinced it’ll even start back up when the light turns green.

You guessed it, Rivian just announced its fifth recall of the year (yes, fifth, as in one more than four). This time they’re yanking back 24,214 vehicles because its “hands-free Highway Assist” misread another car and caused a low-speed collision. So… the system couldn’t do the one job it was designed for… identify other vehicles. (It’s like hiring a lifeguard who can’t swim.)

(Source: Reuters)

Now to Rivian’s credit, it pushed an over-the-air fix that supposedly resolves 99% of the problem. But still… five recalls in 2025, covering nearly 70,000 vehicles, is a rough look for a company already fighting for credibility. Surprisingly investors don’t love the idea of a truck that costs as much as a starter home in Illinois, but still has the reliability of McDonald’s ice cream machine.

As a result, Friday’s dip wiped out Rivian’s year-to-date gains, leaving shares down more than 20% from their highs earlier this year. The timing couldn’t be worse as the $7,500 federal EV tax credit is set to expire at the end of September thanks to Trump’s “big, beautiful bill.” That perk was one of the few things making Rivian’s pricey trucks remotely accessible. Without it, potential buyers are staring at full sticker shock.

Honestly, it feels like Rivian has been on a perpetual uphill climb since its splashy 2021 IPO. Deliveries fell 24% in Q1 and another 22% in Q2 of this year. The Normal, Illinois factory is still struggling to scale. Not to mention the billions in annual losses keep forcing layoffs and capital raises.

The “big hope” is the upcoming R2 model, a compact SUV set to launch in 2026 at $45K with 300+ miles of range. That’s Rivian’s play to move beyond niche adventurers and finally compete with Tesla’s Model Y. But the recall drama plants a big question mark. Will customers actually trust Rivian to scale safely? (Hard to brag about “eyes-off driving” when your current software thinks a Corolla is a mirage.)

(Source: Automotive Drive)

With all that said, Rivian’s not alone in this mess. The entire EV sector is going ice cold… Q2 sales fell 6% year-over-year, average EV prices are still hovering around $58K (vs. $49K for gas cars), and high interest rates are arguably the biggest culprit. Huge car giants like Ford and GM can soften the pain with incentives… but Rivian doesn’t really have that luxury (in other words: they’re getting cooked).

I hate to keep piling it on, but Rivian’s rough ride doesn’t look to be over anytime soon. The recall eats away at trust, the tax credit cliff kills demand, and investors are running out of patience. There’s still upside if the R2 lands as advertised, but for now, this feels less like a growth story and more like my old Honda at a red light… everyone's just praying it turns back on.

At the time this article was published Stocks.News holds positions in Tesla and Ford as mentioned in the article.