Rivian Automotive Inc has been sued by a shareholder who claimed the company misled investors in its initial public offering about how it had mispriced its electric vehicles, leading to unpopular price hikes that it swiftly rolled back.
Crews said the increases"would tarnish Rivian's reputation as a trustworthy and transparent company," putting a large number of 55,400 preorders dating back to 2018 in jeopardy of cancellation. The lawsuit came after Irvine, California-based Rivian sparked a customer backlash on March 1 by raising the R1S's price to $84,500 from $70,000, and the R1T's price to about $79,500 from $67,500.
The Amazon.com-backed company went public at $78.00 per share, raising about $12 billion in the world's largest IPO of 2021. Its shares closed Monday at $42.43, after losing 37per cent of their value in the prior five trading days.
Source: News Formal (newsformal.com)