Electric vehicle manufacturer Rivian has been slapped with a lawsuit which alleged that the company misled the investors with false claims regarding its business, operations and prospects.

The class-action lawsuit made a number of allegations which included overstating the demand of its Electric vehicles and also not making it clear how it will handle the negative and near-term macroeconomic impacts.

The lawsuit also revealed that Rivian’s business was experiencing reduced demands as well as increased customer cancellations precipitated by inter alia, high interest rates.

The orders had significantly reduced and this has significantly reduced the profits and the manufacturing of vehicles in 2024.

Rivian Faces New Class-Action Lawsuit Alleging Deceptive Statements

The lawsuit also alleged that the Company’s public statements were materially false and misleading at all relevant times.

Rivian’s stock, like all other EV startups, has been tanking and this has angered the investors who saw a major portion of their investments eroded and a number of law firms like Bernstein Liebhard LLP announced this week that it has filed a securities class action lawsuit on investors’ behalf.

The lawsuit stated that the EV manufacturer had violated the Securities Exchange Act of 1934 and has asked investors who had bought shares of Rivian Automotive, Inc. between March 1, 2023, and February 21, 2024, to join its suit.

The company’s stocks have fallen and one of the primary reasons was the high interest rates. Rivian’s products are beyond the reach of an average income household.

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The Rivian’s Electric vehicles target customers were wealthier clients and the spurt in order cancellations means this class is walking away from Rivian’s product.

The stocks of the company were popular for the investors but the reduced demands caused by higher borrowing cost have hit its stock prices badly.

The price war has also affected the EV sector and the company also with its competitors like Tesla has been uniformly affected.

The EV sector marked value has tanked by more than 57% year-to-date.

The chance of a fall in interest rates is not expected since the Federal Reserve will not lower the benchmark interest rate since it could lead to a bout of hyperinflation.

Also another factor which will discourage the Federal Reserve to lower interest rates is the soaring energy prices caused by the war in Ukraine and the Middle East.

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Modern vehicles are equipped with various safety features, including Electronic Stability Control (ESC), which helps drivers maintain control in critical situations. ESC uses automatic braking to keep the vehicle on course, preventing loss of control due to slipping wheels.

ESC, also known as Vehicle Stability Control (VSC) or Electronic Stability Program (ESP), assists drivers during hard turns or steep manoeuvres by adjusting the brakes and engine throttle. This technology doesn’t prevent rollovers but helps keep the vehicle stable by ensuring the tires stay on the road.

The ESC system activates when the vehicle’s ignition is turned on and works in the background by monitoring steering wheel activity and wheel speed sensors. If a loss of control is detected, ESC automatically adjusts oversteer and understeer, applying brakes to individual wheels to bring the vehicle back on track.

Advantages of ESC include preventing vehicle skidding in slippery conditions, providing support in tricky driving situations, enhancing safety, comfort, and agility, and helping drivers maintain control of their vehicles. This technology significantly reduces the risk of rollovers and improves overall driving safety.

Ducati India has unveiled a new black-on-black livery for the Panigale V2 motorcycle, with bookings now open. The price will be announced later this month, while the current Ducati Red variant is priced at ₹20.68 lakh ex-showroom.

The Ducati Panigale V2 retains the same 955 cc, L-twin Superquadro engine, producing 152 bhp of power and 104 Nm of torque. It features a 6-speed gearbox with Ducati Quick Shift and a slipper clutch for smooth gear transitions.

Equipped with a monocoque aluminum frame and single-sided swingarm, the Panigale V2 boasts Fully adjustable Showa BPF forks at the front and a Sachs unit at the rear. It rolls on 17-inch alloy wheels with Pirelli Diablo Rosso Corsa II tires and sports twin 320 mm semi-floating discs with Brembo Monobloc M4.32 calipers.

The motorcycle comes with a 4.3-inch TFT color screen displaying essential information and safety features like Riding Modes, Bosch Cornering ABS EVO, and Ducati Traction Control (DTC) EVO 2. Optional add-ons include Full LED lighting, Ducati Data Analyser+ (DDA+), and anti-theft features for added convenience.