Home Automobile Rivian's shares sink after a report says authorized battle with a provider might delay Amazon vans

Rivian's shares sink after a report says authorized battle with a provider might delay Amazon vans

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Rivian's shares sink after a report says authorized battle with a provider might delay Amazon vans

Production of electrical Amazon supply 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 mentioned the upstart electric-vehicle maker is suing a key provider in a authorized battle that might delay vans ordered by Amazon.

Amazon, a serious investor in Rivian, positioned an order for 100,000 electrical supply vans final yr.

Rivian’s lawsuit, in keeping with the report, accuses Ohio-based Commercial Vehicle Group of violating its contract with Rivian to produce seats for the vans by sharply elevating its costs after the contract was signed. It mentioned in court docket filings that the dispute might influence its capacity to ship the vans as promised, the Journal reported.

Commercial Vehicle Group has denied the allegations, in keeping with the report, arguing that it wasn’t obliged to ship the seats on the cheaper price and that it raised its value after Rivian submitted adjustments to the design of the seats.

A Rivian spokesperson informed CNBC that Commercial Vehicle Group has continued to produce seats to Rivian and that the 2 corporations are discussing a decision to the dispute. Representatives for Commercial Vehicle Group didn’t instantly reply to a request for remark.

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

Read the total report at The Wall Street Journal.

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