Production of electrical Amazon shipping 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 Avenue Journal that mentioned the upstart electric-auto maker is suing a key supplier in a authorized battle that could delay vans ordered by Amazon.
Amazon, a key investor in Rivian, positioned an get for 100,000 electric powered shipping vans past yr.
Rivian’s lawsuit, according to the report, accuses Ohio-dependent Commercial Motor vehicle Group of violating its agreement with Rivian to provide seats for the vans by sharply raising its charges immediately after the agreement was signed. It mentioned in court docket filings that the dispute could effects its capability to produce the vans as promised, the Journal noted.
Commercial Car Team has denied the allegations, according to the report, arguing that it was not obliged to deliver the seats at the reduce selling price and that it lifted its cost after Rivian submitted modifications to the design and style of the seats.
A Rivian spokesperson explained to CNBC that Industrial Car Group has ongoing to supply seats to Rivian and that the two businesses are talking about a resolution to the dispute. Associates for Industrial Automobile Group did not promptly answer to a ask for for remark.
Rivian’s shares finished Monday’s session at $24.86, down 6.9%.
Browse the whole report at The Wall Avenue Journal.