Connect with us

News

Rivian faces gender discrimination lawsuit from former exec ahead of IPO

(Credit: Rivian)

Published

on

As the days count down towards the company’s entry into the stock market, Rivian Automotive Inc. has been struck with a lawsuit from a former executive who alleged that she suffered gender discrimination while working for the electric truck maker. The suit was filed Thursday in a California Superior Court in Orange County. 

Laura Schwab served as Rivian’s vice president of sales and marketing, joining the company in November 2020 after leaving Aston Martin. Her credentials are impressive, being the first female President in Aston Martin’s 108-year history. As per a Bloomberg report, Schwab’s compensation from Rivian was substantial, with a $360,000 base salary, a 40% sign-on bonus, a $4,000 monthly stipend, a $100,000 sign-on bonus, and $1.5 million in equity in the form of restricted stock units. 

According to the former executive, however, her experience with the company left much to be desired. Schwab alleged that she was abruptly terminated by the company after she complained about a “textbook pattern of gender bias” and discrimination from a top executive. By doing so, the former executive alleged that Rivian violated the state’s labor code, tarnished her reputation, and caused her emotional pain. She also noted that her termination cost her “millions of dollars in unvested equity on the eve of the company’s IPO.”

Other issues brought up in the suit involved Schwab being routinely excluded from meetings despite her extensive experience in the auto industry. She also noted that Rivian’s Chief Commercial Officer made decisions about her team “without her input but with input from men on different teams, and dismissed the legitimate concerns she had regarding Rivian’s misleading public statements and flawed business practices.” Her warnings about the pricing of the company’s vehicles, as well as her concerns about delivery targets were allegedly ignored as well. 

The former Aston Martin and Rivian executive took to Medium to share her thoughts on the matter. 

“Rivian publicly boasts about its culture, so it was a crushing blow when I joined the company and almost immediately experienced a toxic bro culture that marginalizes women and contributes to the company making mistakes. I raised concerns to HR about the gender discrimination from my manager, the ‘boys club’ culture, and the impact it was having on me, my team, and the company. Two days later, my boss fired me.

Advertisement
-

“Despite my 20 years of auto experience, and my position as VP of Sales and Marketing, I was excluded from crucial meetings that impacted our mission and my team. Time and time again, I raised concerns regarding vehicle pricing and manufacturing deadlines, but no one listened, even though I have extensive experience launching and pricing vehicles. It wasn’t until my (often less experienced) male colleagues raised the exact same ideas that the Chief Growth Officer (internally called Chief Commercial Officer) would respond. Never in my years in the auto industry had I experienced such blatant marginalization,” Schwab wrote. 

Rivian has so far declined to comment on the lawsuit, with spokeswoman Amy Mast citing restrictions of the company’s quiet period as part of its impending IPO.  

The former executive’s post about her experience at Rivian could be accessed here.

Don’t hesitate to contact us with news tips. Just send a message to tips@teslarati.com to give us a heads up.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

Advertisement
Comments

Elon Musk

The Boring Company’s latest Tesla tunnel truck mod “fits like a glove”

The Boring Company has modified a Tesla powered tunnel truck to carry freight containers underground.

Published

on

By

the-boring-company-tesla-robotaxi

The Boring Company has found a second job for the Tesla hardware it already runs underground. In a post on X, Elon Musk’s tunneling company showed its latest Prufrock Liner Truck modified to carry a standard 20 foot shipping container. “Using TBC tunnels to transport freight,” the company wrote. “The latest Prufrock Liner Truck (using Tesla Model 3 batteries and drive units) has been modified to carry a standard 20′ shipping container. Fits like a glove!”

The photo shows a red container sitting on a long, low white chassis parked outside, with drive hardware visible at one end. The Boring Company did not say where or when freight hauling would start, which customers it has in mind, or how many trucks it is converting.

Advertisement
-

Until now, the liner trucks have hauled concrete. Teslarati reported in August on Liner Truck 3, which uses Model 3 battery packs and drive units to move more than 22,000 pounds of precast tunnel segments to the boring machine. It has 28 miles of range, tops out at 12 mph, and is piloted remotely from the company’s operations center in Texas. The freight version appears to be the same platform with a different bed, and The Boring Company has not said whether it will also be remotely piloted.

Freight has been on the company’s menu for years. When TBC updated its product lineup in 2021, its freight tunnel was described as sized to fit a standard shipping container, “barely.” The company later used the idea at Tesla’s own factory, where Prufrock 3 dug a tunnel to Giga Texas that now moves finished Cybertrucks away from the production line.

The Boring Company closed a $3 billion Series D in September at a $23 billion valuation, and Teslarati has covered how that money is tied to a UAE tunneling push and a faster Nashville build. In Nashville, Prufrock MB1 and MB2 are mining at the same time, and a third machine is expected to launch in late October. Each machine needs a steady supply of liner trucks, so any design that works for segments and containers alike gives the company more use out of the same Tesla parts.

The Vegas Loop remains the only Boring Company system open to the public, and it moves passengers in Tesla vehicles. A freight service would be a separate product, and the post gave no indication that one is close to launch. For now, it is a truck, a container and a short caption saying they fit together.

Continue Reading

Elon Musk

Elon Musk will give ‘every kid in America’ a SpaceX share in 2027

Published

on

Credit: Grok Imagine

Elon Musk said he is planning to give “every one of his SpaceX shares to every kid in America” in 2027, stating that “this will be the first of many.”

SpaceX went public earlier this year, and its stock price has been relatively stable since leveling off shortly after its IPO. Based on its current price, it’s a gift of just over $10 billion to children across the United States.

It appears to be closely related to President Donald Trump’s bank accounts for children, which were set up earlier this year as Trump Accounts.

Just hours earlier, Anthropic had announced the establishment of its Anthropic Public Benefit Fund, “a new wholly-owned entity dedicated entirely to public benefit.” Musk responded by stating he recommended “giving the shares directly to the public,” and that he would be doing it that way.

Just a little bit later, Musk said children across the U.S. would be getting a share from him:

Advertisement
-

There are roughly 70 million children, meaning someone under the age of 18, in the United States, according to the Federal Interagency Forum on Child and Family Statistics. Musk’s ownership of SpaceX stock shows he has around 849 million Class A shares of SpaceX stock, according to filings with the SEC.

Continue Reading

Elon Musk

Elon Musk reveals why Boring Co’s biggest East Coast project never happened

Published

on

(Credit: The Boring Company)

Elon Musk revealed in a post on X that “Permits were impossible to get,” explaining the fate of The Boring Company’s most ambitious East Coast proposal.

The comment responded to a query about what became of his July 20, 2017 announcement that he had “just received verbal govt approval” for an underground Hyperloop connecting New York City, Philadelphia, Baltimore, and Washington, D.C., capable of carrying passengers from the Big Apple to the Nation’s Capital in just 29 minutes.

The Boring Company receives verbal ‘approval’ to build NY to DC Hyperloop tunnel

The 2017 post, which envisioned city-center stations and multiple elevators in each city, sparked immediate scrutiny. Local and state officials in New York, Philadelphia, Baltimore, and D.C. said they had no knowledge of any approval. A White House spokesperson confirmed only “promising conversations” about the transformative infrastructure.

Musk clarified shortly after that there was “still a lot of work” to do for formal approvals.

Limited progress followed, as Maryland Governor Larry Hogan’s administration issued a conditional utility permit and supported work near Fort Meade. In 2018, Washington, D.C., granted a preliminary permit for site preparation and excavation on a vacant lot at 53 New York Ave. NE in the NoMa neighborhood, which The Boring Company said could become a station.

A draft environmental assessment for a D.C.-Baltimore segment was released in 2019. Yet, by April 2021, the company had removed the project from its website, and the Federal Highway Administration reported receiving no indication of further interest. Communication with Maryland officials had ceased.

The full corridor would have required coordination among the District of Columbia, Maryland, Pennsylvania, New York, the Federal Highway Administration, the Army Corps of Engineers, the National Park Service, and other agencies.

Environmental reviews under the National Environmental Policy Act, utility clearances, and approvals for novel infrastructure added to the overall complexity of the project and its approval.

Speculation on the permitting barriers centers around a few factors, but a multi-state, multi-level route involving unproven high-speed vacuum-tube technology inherently triggers exhaustive safety, environmental, and engineering reviews that can stretch for years, even for conventional projects.

Advertisement
-

There are also other elements, of course, like officials who may face political exposure if a privately funded, untested system encountered anything such as cost overruns, delays, or safety issues. On the outset of this project, there were limited things such as engineering plans or demonstrated technology maturity, which also added to the potential skepticism.

The East Coast vision for Boring Co., once framed as a privately funded revolution that could reshape Northeast travel, quietly ended without construction of the promised network. Musk’s recent statement frames the outcome as a regulatory impasse, unfortunate but not unexpected.

Continue Reading