Rivian shares sink after report that legal battle with supplier could delay Amazon pickups

Production of Amazon electric delivery vans on April 11, 2022 at the Rivian plant in Normal, Illinois.

Michael Wayland/CNBC

Shares of Rivian Automotive fell on Monday after a Wall Street Journal report that the upstart electric vehicle maker is suing a key supplier in a legal battle that could delay pickup trucks 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 the Ohio-based utility vehicle group of violating its contract with Rivian to provide seats for pickup trucks by raising its prices sharply after signing the contract. He said in court filings that the dispute could impact his ability to deliver the vans as promised, the Journal reported.

Commercial Vehicle Group denied the allegations, the report said, arguing that it was not obligated to deliver the seats at the lowest price and raised its price after Rivian submitted changes to the seat design. .

Rivian shares were down around 6% by mid-afternoon. Representatives for Rivian and Commercial Vehicle did not immediately respond to request for comment.

Read the full report in the Wall Street Journal.

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