Rivian to Pay $250 Million to Settle Shareholder Lawsuit Over EV Pricing

Electric vehicle maker Rivian Automotive has agreed to pay $250 million to settle a class-action lawsuit filed by shareholders who alleged the company misled investors about vehicle pricing during its 2021 IPO. The lawsuit, filed in 2022, claimed that Rivian failed to disclose its EVs were underpriced, leading to a significant price hike soon after going public—causing stock prices to plunge and investors to suffer losses.

According to court filings, Rivian’s share price fell 39% over a ten-day span in March 2022 after it raised the price of its R1S SUV from $70,000 to $84,500 and its R1T pickup from $67,500 to $79,500. The sharp price increase sparked customer outrage across social media, fueling concerns about transparency and pricing strategy.

Rivian denied any wrongdoing, stating that the settlement does not constitute an admission of guilt. The company emphasized that resolving the matter allows it to focus on its upcoming R2 SUV launch, a smaller and more affordable model expected to debut next year. The R2 is seen as vital to Rivian’s long-term survival as the company faces sluggish EV demand following the expiration of key U.S. tax credits.

In response to market pressures, Rivian has implemented cost-cutting measures, including laying off 4.5% of its workforce—about 600 employees—to streamline operations amid rising tariffs and production expenses.

Lawyers representing shareholders said the $250 million settlement represents a “substantial percentage” of potential damages that could have been awarded. Rivian remains committed to strengthening investor confidence while pushing forward with new product development to compete in the evolving electric vehicle market.