Rivian Settles Price-Hike Lawsuit for $250 Million
A significant legal chapter closes for the electric vehicle manufacturer. Rivian announced a $250 million settlement in a lawsuit stemming from a controversial price increase. This agreement concludes a multi-year legal challenge that impacted the company’s early market trajectory.
The Core of the Dispute: R1 Price Adjustments
The lawsuit, initiated three years ago, centered on Rivian’s decision in March 2022 to raise prices across its R1T pickup and R1S SUV lineup. This move affected pre-order holders who had committed to earlier, lower prices.
Market Reaction and Investor Concerns
The announcement of the price hike was met with considerable backlash from customers and investors alike. Reports indicate that Rivian’s stock price experienced a notable decline following the 2022 decision, reflecting market uncertainty and shareholder dissatisfaction.
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