Credit: Jordan Stead / Amazon

Rivian warns that dispute with Commercial Vehicle Group can affect production, reports

Written by Cláudio Afonso | | LinkedIn | Twitter

According to The Wall Street Journal, Rivian Automotive legal battle with Commercial Vehicle Group, could affect the production of the Amazon destined Vans. The electric vehicle maker sued in March the Ohio-based Commercial Vehicle Group Inc. accusing it of violating the supply contracts for seats.

Rivian claims that the supplier nearly doubled the initially agreed-upon price per unit, the court filings reviewed by WSJ said. The supplier said denied saying the price increases seen only happen after the design changes agreed. The automaker warned that the production of the Vans can be stopped if Commercial Vehicle Group stops providing seats, Court Filings say.

In early May, Rivian‘s van was seen in Germany with a Swedish license plate. Recently, the company declined to disclose how many of these vehicles were built so far, but during the recent visit by Media to the facility, dozens of those were seen ready to be delivered apart from the ones on the assembly line.

According to a May 13 filing, George Soros’ Fund Management increased its stake in Rivian Automotive buying 6,045,000 Class A shares during the first quarter of 2022. Soros was one of the early investors in the electric vehicle maker buying 19,835,761 shares in Q4 2021 making Rivian its largest holding. Based on Friday’s closing price, the 25.88 million Rivian shares owned by the Fund are valued at $691 million.

Last week, Rivian Automotive announced its Q1 2022 Financial Results missing the first quarter revenue estimated reporting $95 million versus the consensus estimate of $130.5 million. The EV maker reiterated its forecast to produce 25,000 vehicles in 2022. 

According to a SEC form released on Friday, Ford sold an additional 7 million shares of its initial investment in Rivian. The US automaker sold the shares for about $26.88 per share ($188.2 million) bringing the weekly total to $402 million and is now still owning 86,947,494 shares of the electric vehicle maker.

Last week, – one day after the insider lock up expiration date – Ford sold 8 million Rivian shares at $26.80 per share 93,947,494. Rivian shares hit on Wednesday session a new all-time-low at $19.25, more than 90% lower from its high in November 2021.

Written by Cláudio Afonso | | LinkedIn | Twitter