Rivian Hikes Prices in Response to Inflation Insanity
Update: In a letter dated March 3, Rivian CEO R.J. Scaringe walked back the impact of this price change and said that the increase would not apply to existing preorders made before March 1, 2022, as previous reports had indicated. Scaringe also said that customers who had canceled their Rivian preorder in response to the price increase could reinstate their original configuration, price and delivery date.
“As we worked to update pricing to reflect these cost increases, we wrongly decided to make these changes apply to all future deliveries, including preexisting configured preorders,” Scaringe wrote. “We failed to appreciate how you viewed your configuration as price locked, and we wrongly assumed the announced Dual-Motor and Standard battery pack would provide configurations that would deliver price points similar to your original configuration. While this was the logic, it was wrong and we broke your trust in Rivian.”
The original story follows:
Inflation is hitting consumers hard this year, and automakers aren’t immune. Reuters is reporting that electric vehicle automaker Rivian is increasing prices of its two vehicles by more than $10,000 each; the automaker blames inflation for the hikes, specifically the rising costs of vehicle components.
Related: 2022 Rivian R1T Quick Spin: The First Very Real Electric Pickup
The new base price for the R1T electric pickup truck is $79,500, up from $67,500 — an almost 18% increase. Meanwhile, the R1S SUV’s price jumps almost 21% to $84,500, up from $70,000. (These prices do not include destination charges.)
According to Reuters, Rivian said the price hikes will affect most of the customers who have already placed preorders for the vehicles, and many have taken to social media to complain.
Rivian is not the only automaker feeling the sting of rising prices for vehicle components and parts shortages. Rival Tesla announced earlier this year that its Cybertruck is delayed for similar reasons.
But there’s a bit of good news on the horizon, at least for Rivian. The automaker said it will introduce more affordable versions of the R1T and R1S models, with lower-range battery packs and dual motors instead of the vehicles’ current quad-motor setups. Those vehicles are slated for 2024, and pricing is set — for now — at the original $67,500 for the truck and $72,500 for the SUV.
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