RIVN: Rivian Settles IPO Class-Action Case While Trimming Staff By 4.5%
Rivian will pay $250 million to settle an IPO lawsuit and is reducing its workforce by 4.5% amid market pressures.Summary
Rivian (RIVN) has agreed to a $250 million settlement to resolve a class-action lawsuit stemming from alleged misstatements during its 2021 IPO, as revealed in a court filing on Thursday. The lawsuit claimed Rivian initially underpriced its R1S SUV and R1T pickup, leading to significant price hikes in 2022, though Rivian maintains it did no wrong. Simultaneously, the electric vehicle manufacturer announced it would be reducing its staff by approximately 600 positions, representing 4.5% of its workforce.
The settlement and layoffs come as Rivian prepares for the launch of its R2 SUV, priced starting at $45,000, which is crucial for the company’s expansion into the mass-market EV segment in 2026. Analysts emphasize the R2’s success as vital for Rivian’s long-term sustainability.
These actions follow previous rounds of layoffs and reflect challenges related to declining demand following the expiration of the federal $7,500 EV tax credit. While third-quarter deliveries increased by 32% to 13,201 units, Rivian has lowered its full-year delivery guidance to 41,500-43,500 vehicles, highlighting the financial pressures and the need to achieve profitability with the R2 in a competitive EV market.
(Source：TradingView)