The highly anticipated Rivian IPO has launched, and it is expected to be one of the largest initial public offerings within the last five years, if not more. However, on the road to the IPO, the EV truck company has received increased attention, and not all of it has been positive. A recent turn of events may harm Rivian’s stock offering.
Fund manager jeopardizes Rivian IPO by criticizing its response on human rights issues
By the time you read this article, Rivian stock may already be available for purchase. However, its value may take a hit thanks to the public criticism of a hedge fund manager who is not satisfied with the EV maker’s response on potential human rights issues.
According to a report from Reuters, SOC Investment Group Executive Director Dieter Waizenegger said that he was “dissapointed in the lack of substance” in Rivian’s response to concerns he had previously raised.
“They sent us a lot of words, but it’s really raising a lot of questions and we expect more substance than aspirations,” said Waizenegger. “It’s particularly lacking on firm commitments to address critical environmental and human rights risks.”
In October, Waizenegger questioned Rivian’s due diligence in its battery supply chain. Rivian sources the batteries for its R1T electric truck and upcoming R1S SUV from Samsung SDI. However, Waizenegger believes that harvesting the raw materials for EV batteries such as cobalt and lithium is “rife with human rights risks.“
If it turns out that Waizenegger’s concerns are correct, it could have a significant impact on the Rivian IPO and drive down the Rivian stock price.
How much is Rivian stock?
According to NASDAQ, Rivian stock (RIVN) is priced at $72-$74 per share when this article is published. Though, considering some of the negative press Rivian is getting at the moment, that number may go down. It is also very possible that the stock will not drop at all or even go up. As you may have noticed, we’re not exactly financial analysts here at MotorBiscuit.
Anything we say regarding Rivian stock, the Rivian IPO, or the stock price and IPO of any other companies should not be taken as financial advice. We are speculating based on the facts surrounding the company and how it may or may not affect Rivian stock price.
Rivian is also facing a gender discrimination lawsuit
In addition to facing human rights questions surrounding its battery supply chain, Rivian is also gearing up to defend itself against a gender discrimination lawsuit. Former Rivian VP of Sales Laura Schwab was recently fired from the company but has come back at Rivian with a lawsuit claiming gender discrimination.
Schwab says she voiced concern over Rivian underpricing its vehicles, manufacturing-quality issues, and unrealistic delivery targets. She also accused Rivian of cultivating a “toxic bro culture” and was excluded from meetings after raising concerns.
Soon after speaking with HR about her experiences, she was fired two days later and given paperwork explaining that her position was being eliminated due to restructuring the company. Her lawsuit says that no other executives were let go.
If Rivian cannot defend itself against these claims or admits guilt, it would not only be a PR nightmare for the company that prides itself on being progressive, it could deal a significant financial blow. Losing the lawsuit could shake investor confidence in the company and drive Rivian stock price down.
So far, the automaker has been quiet on the issue of the lawsuit, but we speculate that a statement will likely come soon after the Rivian IPO is complete. We will continue to follow the story as it develops.