INVESTOR ALERT: Law Offices of Howard G. Smith Announces Investigation of Rivian Automotive, Inc. (RIVN) on Behalf of Investors

BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces an investigation on behalf of Rivian Automotive, Inc. (“Rivian” or the “Company”) (NASDAQ: RIVN) investors concerning the Company’s possible violations of federal securities laws.

On November 10, 2021, Rivian conducted its initial public offering (“IPO”), selling 153 million shares of common stock for $78.00 per share.

On March 1, 2022, Rivian announced that it was raising the prices of its R1T pickup by 17% and its R1S SUV by 20%, and that the new prices would apply to nearly all preorders. At the time of the announcement, Rivian had only produced and sold roughly 1,000 vehicles while the number of preorders for the R1T and R1S had grown to approximately 71,000 as of December 15, 2021. The Company’s chief growth officer explained that the price increase was due to “inflationary pressure, increasing component costs, and unprecedented supply chain shortages and delays for parts.”

Then, on March 2, 2022, ARS Technica published an article stating that “[w]hile inflation is likely part of the story, the price hike may have been planned for a while,” citing a lawsuit by Rivian’s former VP of sales and marketing alleging that “concerns over profitability were raised in spring 2021.”

On this news, Rivian’s stock fell $8.41, or 13.5%, to close at $53.56 per share on March 2, 2022, thereby injuring investors.

Then, on March 3, 2022, Rivian’s CEO apologized to customers and stated that the Company would honor original prices for preorders placed prior to the price increase announcement. But an article by The Wall Street Journal reported that some customers who had cancelled their orders did not reinstate them “[e]ven after learning that [their] original price would be honored.”

On this news, Rivian’s stock price fell $2.65 and currently trades significantly below the IPO price.

If you purchased Rivian securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at [phone], toll-free at [phone], or by email to [e-mail], or visit our website at www.howardsmithlaw.com.

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