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


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 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.

Rivian’s shares were down about 6% in mid-afternoon trading. Representatives for Rivian and Commercial Vehicle did not immediately return request for comment.

Read the full report at the Wall Street Journal.



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