Rivian Automotive, Inc. Class A Common Stock

Natural and catastrophic events · Pandemic and public health crises

If a new health epidemic, pandemic or outbreak were to occur, we could experience broad and varied impacts similar to the impact of COVID-19, including adverse impacts to our workforce and supply chain, inflationary pressures and increased costs, schedule or production delays, market volatility, and other financial impacts.

Geopolitical and trade · Trade policies tariffs and sanctions

Our business is subject to the imposition of tariffs and other trade barriers, which may make it more costly for us to export our vehicles to other countries, and to import raw materials and components for our vehicles or delay or disrupt our supply of raw materials and components.

Geopolitical and trade · International conflicts and tensions

Military conflicts, geopolitical tensions, political instability, economic sanctions, incidents of terrorism or responses to these events, pandemics or natural disasters could affect our business.

Stakeholder relations · Employee engagement and culture

If we cannot maintain our culture as we grow, we could lose the innovation, teamwork, and passion that we believe contribute to our success and our business may be harmed. As we continue to grow, including geographical expansion, we will need to maintain our culture across a larger number of employees, disciplines and geographic regions.

Stakeholder relations · Supplier and vendor relationships

We are dependent on establishing and maintaining relationships with vendors and suppliers necessary for the production of our products and services, a significant number of which are single or limited source suppliers, and effectively managing the risks due to such relationships.

Information management · Data quality and integrity

Our operations and IT systems are subject to certain technical limitations that may compromise our ability to meet our objectives, and our software and hardware can contain errors, bugs, vulnerabilities, or design defects.

Technology infrastructure · Network connectivity and telecommunications

If a significant natural disaster occurs, or our information technology systems or communications networks break down or operate improperly, our facilities may be seriously damaged or we may have to stop or delay production.

Digital transformation and innovation · Technology implementation and upgrades

We must continue to develop complex software and hardware in coordination with the Joint Venture and our other vendors and suppliers to reach mass production for our vehicles, and there can be no assurance such systems will be successfully developed or integrated on a timely basis or at all, or perform effectively once integrated.

Digital transformation and innovation · Technology obsolescence and evolution

We may be unable to keep up with changes in EV technology or alternatives to electricity as a fuel source and, as a result, our competitiveness may suffer. Developments in alternative technologies, such as advanced diesel, hydrogen, ethanol, fuel cells, or compressed natural gas may materially and adversely affect our business.

Digital transformation and innovation · Artificial intelligence and automation

Our roadmap integrates machine learning, artificial intelligence, and automated decision making in our products and business. However, in recent years use of these AI Technologies has come under increased regulatory scrutiny. If the models underlying our AI Technologies are incorrectly designed or implemented, the performance of our products, services and business could suffer or we could incur liability.

Data and privacy · Regulatory investigations and penalties

Any actual, alleged or perceived failure to prevent a security breach or to comply with our privacy policies or privacy-related legal obligations could result in regulatory investigations and enforcement actions.

Tax and financial reporting · Internal controls and compliance programs

If we identify material weaknesses in the future or fail to maintain effective internal control over financial reporting, our ability to produce accurate and timely financial statements or comply with applicable laws and regulations could be impaired.

Legal and litigation · Litigation and legal proceedings

We are subject to various litigation matters from time to time, the outcome of which has had and in the future could have a material adverse effect on our business, financial condition, results of operations, and cash flows. Claims arising out of actual or alleged violations of law could be asserted against us by individuals, either individually or through class actions.

Tax and financial reporting · Transfer pricing and international tax

We are also required to indemnify Volkswagen Group for any claims that Volkswagen Group's or the Joint Venture's use of the technology we licensed to them infringes or otherwise violates third-party intellectual property rights.

Tax and financial reporting · Financial reporting and accounting standards

If our estimates or judgments relating to our critical accounting policies are based on assumptions that change or prove to be incorrect, our results of operations could fall below the expectations of our investors and securities analysts.

Data and privacy · Data protection and privacy laws

If we fail to comply with federal, state, and foreign laws relating to privacy, data, and data security, we may face potentially significant liability, negative publicity, and an erosion of trust. We are subject to a variety of laws, rules and regulations relating to privacy and data security, including the GDPR, CCPA and other data protection laws.

Market position and competition · Pricing pressure and margin compression

The EV sector continues to experience price competition due in part to political and general economic conditions. Many of our competitors have announced changes in EV production plans and their pricing strategy, including vehicle price reductions and incentives, which may continue to result in downward price pressure.

Market position and competition · Industry consolidation and market concentration

Competition for EVs may intensify due to increased global sales volume, launch of new variants, discounts and incentives, continuing globalization, and consolidation in the worldwide automotive industry.

Human capital and workforce · Skills shortage and training requirements

Experienced and highly skilled employees are in high demand and competition for these employees can be intense, especially in California and for talent across product development and all engineering disciplines.

International and currency · International operations and emerging markets

Our business plan includes operations in international markets, including initial manufacturing and supply activities, and sales, in select markets in Canada and Europe. We face risks associated with international business activities that may increase our costs, impact our ability to sell or lease our vehicles, products and services.