RIVN Stock: Rivian Reportedly Hit With Class-Action Lawsuit Over False Gen 1 Vehicle Autonomy Claims

• The suit brings claims of fraud, negligent misrepresentation and unjust enrichment, and seeks a jury trial.
• The case echoes similar legal challenges faced by other automakers, including Tesla, over the marketing of advanced driver-assistance systems.
• According to data from Koyfin, the 12-month average price target on Rivian is $18.19, representing a potential upside of about 10% from the stock’s last close.

EV startup Rivian Automotive (RIVN) is reportedly facing a proposed class-action lawsuit accusing the company of misleading customers about the autonomous driving capabilities of its first-generation R1T pickup trucks and R1S SUVs.

The complaint, filed on Wednesday in the U.S. District Court for the Central District of California, alleges that Rivian ran a five-year nationwide marketing campaign falsely claiming its Driver+ system would deliver hands-free, eyes-off driving equivalent to SAE Level 3 autonomy on Gen 1 vehicles, TechCrunch reported.

RIVN stock closed Thursday’s session up 1.6%. But it failed to hold on to the gains in after-hours trading and was down 0.24% at the time of writing.

What Does The Lawsuit Say?

The lawsuit reportedly says, “No software update — no matter how sophisticated — will enable its Gen 1 Vehicles to perform as advertised.” It further claims, “Rivian unquestionably knew that its Gen 1 Vehicles would never be capable of Level 3 autonomy or ‘true hands-free driving’ yet continued to tout the supposed capabilities of its vehicles to induce consumers to purchase them.”

The suit brings claims of fraud, negligent misrepresentation and unjust enrichment, and seeks a jury trial. It further references public statements by Rivian CEO RJ Scaringe.

In contrast to Rivian’s R1 vehicles, its redesigned second-generation models, launched in 2024 with the new Rivian Autonomy Platform, received a “Universal Hands-Free” feature via software update in 2025. That system operates on more than 3.5 million miles of roads in the U.S. and Canada.

Similar Challenges Across Sector

The case echoes similar legal challenges faced by other automakers over the marketing of advanced driver-assistance systems. 
In December 2025, a California administrative law judge ruled that Tesla’s use of terms such as “Autopilot” and “Full Self-Driving” was deceptive, as it falsely implied vehicles could operate safely without constant driver attention. The California DMV adopted the finding and required corrective marketing changes, which Tesla implemented to avoid license suspension. 
A separate California class-action lawsuit, certified in August 2025, alleges Tesla misled buyers for years by promising advanced self-driving features that the hardware and software could not deliver. 
Tesla CEO Elon Musk had previously promised that vehicles with older hardware, called HW3, could achieve vehicle autonomy. However, Musk retracted his statement later, saying it cannot be achieved due to hardware limits. While the newer hardware 4 is expected to support vehicle autonomy, the feature allowing for a complete lack of driver attention is yet to be rolled out.

How Did RIVN Retail Traders React?

On Stocktwits, retail sentiment around RIVN stock stayed within the bearish territory over the past 24 hours, while message volume fell from high to normal levels.

A user on X highlighted the multiple upsides to Rivian, including their partnership with Volkswagen and efforts in robotics via its spinout Mind Robotics. “anything under $25 on this stock is a master piece and ill continue adding,” they said.

A Stocktwits user echoed the sentiment, highlighting that the company has many potential catalysts.

According to data from Koyfin, 11 of the 26 analysts covering RIVN rate it ‘Buy’ or higher, while 10 rate it Hold, and five rate it Sell or Strong Sell. The 12-month average price target on the stock is $18.19, representing a potential upside of about 10% from the stock’s last close.

RIVN stock has fallen 15% this year. 

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