Production of Amazon’s electric delivery vans on April 11, 2022 at Rivian’s plant in Normal, Ill.
Michael Wayland / CNBC
Shares of Rivian Automotive sunk on Monday following a report by The Wall Street Journal that the emerging electric vehicle maker is suing a major supplier in a legal battle that could delay trucks ordered by Amazon.
Amazon, a major investor in Rivian, ordered 100,000 electric delivery vans last year.
Rivian’s lawsuit, reportedly, charges based in Ohio Commercial vehicle group breached a contract with Rivian to provide truck seats by dramatically increasing prices after the contract was signed. In court filings, they said the dispute could affect their ability to deliver the trucks as promised, the Journal reported.
According to the report, the Commercial Vehicle Corporation denied the allegations, arguing that it was under no obligation to deliver the seats at a lower price and that they raised the price after Rivian submitted design changes to the seats.
Shares of Rivian fell about 6% in mid-afternoon trading. Representatives for Rivian and Commercial Vehicles did not immediately return requests for comment.
Read the full report at The Wall Street Journal.
