Rivian’s shares sink after a report says legal battle with a supplier could delay Amazon vans

1 min


189
128 shares, 189 points

Production of electric Amazon delivery vans on April 11, 2022 at Rivian’s plant in Normal, Ill.

Michael Wayland / CNBC

Shares of Rivian Automotive sank Monday after a report by The Wall Street Journal that said the upstart electric-vehicle maker is suing a key supplier in a legal battle that could delay vans ordered by Amazon.

Amazon, a major investor in Rivian, placed an order for 100,000 electric delivery vans last year.

Rivian’s lawsuit, according to the report, accuses Ohio-based Commercial Vehicle Group of violating its contract with Rivian to supply seats for the vans by sharply raising its prices after the contract was signed. It said in court filings that the dispute could impact its ability to deliver the vans as promised, the Journal reported.

Commercial Vehicle Group has denied the allegations, according to the report, arguing that it wasn’t obliged to deliver the seats at the lower price and that it raised its price after Rivian submitted changes to the design of the seats.

A Rivian spokesperson told CNBC that Commercial Vehicle Group has continued to supply seats to Rivian and that the two companies are discussing a resolution to the dispute. Representatives for Commercial Vehicle Group did not immediately respond to a request for comment.

Rivian’s shares ended Monday’s session at $24.86, down 6.9%.

Read the full report at The Wall Street Journal.

Source: CNBC


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189
128 shares, 189 points

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