Manufacturing of electrical Amazon supply vans on April 11, 2022 at Rivian’s plant in Regular, Ailing.
Michael Wayland / CNBC
Shares of Rivian Automotive sank Monday after a report by the Wall Street Journal that 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 stated in courtroom filings that the dispute may affect its capacity to ship the vans as promised, the Journal reported.
Industrial Automobile 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 modifications to the design of the seats.
Rivian’s shares have been down about 6% in mid-afternoon buying and selling. Representatives for Rivian and Industrial Automobile didn’t instantly return request for remark.
Learn the total report at the Wall Street Journal.