Orders cancelled en masse as Rivian ups EV prices

Updated Monday 7 March:

 

Rivian has reversed its decision to pass on price rises to its existing customers saying it is seeking to regain the trust of its customers and to avoid further cancellations by honouring the original pricing of orders submitted before March 1.

 

In a letter to customers, Rivian CEO RJ Scaringe said the new pricing structure had sought to cover future cost increases but admitted the company wrongly assumed new derivatives of the R1T and R1S would deliver price points similar to many customers’ original configurations.

 

“While this was the logic (behind our decision), it was wrong, and we broke your trust in Rivian,” Mr Scaringe said.

 

Unfortunately for new customers, the price rise will stick and reflect the rising price of materials, labour and logistics now common across the automotive manufacturing industry.

 

“Building a durable business is core to the continued impact we can deliver as a company. We are focused on building a brand and products that will continue to scale to different vehicle sizes, use cases, price and markets. This growth will only be possible with your support and continued feedback,” Mr Scaringe added.

 

 

RIVIAN has been forced to up the list prices of its R1T electric pick-up truck and R1S electric SUV by more than $US12,000 ($A16,300) as a result of a rise in the costs of components and the models’ production being disrupted by ongoing supply-chain challenges.

 

According to US publication The Driven, the price hikes have resulted in mass cancellations of vehicle orders. In fact, the result of a poll conducted on a Rivian owners forum suggests that as many as 60 per cent of prospective buyers will no longer purchase a vehicle from the company.

 

Rivian chief growth office Jiten Behl said the “unavoidable” price hikes would enable the firm to continue offering a high standard of build quality and equipment in the R1T and R1S in future.

 

“This decision will allow us to continue to offer competitive products that maintain the high standard of quality, performance and capabilities our customers expect and deserve from Rivian,” Mr Behl said.

 

When Rivian debuted the R1T and R1S back in 2018, the models were priced from $US69,000 ($A93,600) before government incentives.

 

Following the announcement of Tesla’s Cybertruck in 2020, the company reduced the list price of its base-grade R1T to $US67,500 ($A91,550) with high-spec Launch Edition variants starting from $US75,000 ($A101,700).

 

The Driven said that in an email to customers this week, Rivian was “forced to modify its pricing” as higher component costs and supply-chain shortages continued to impact production.

 

“Vehicle base pricing and the cost of certain options, upgrades and accessories have increased. On R1T Adventure and Explore packages, the tonneau cover is now a selectable upgrade,” Rivian told wait-listed customers via email.

 

“We’re in the process of updating your Rivian account page to reflect these adjustments and we will send you an email notification when the update is complete. Until then, all product and pricing updates can be viewed in our configurator.”

 

It is understood the most expensive quad-motor R1T and R1S are the only variants in production. In their base form, both variants are $US6000 ($A8135) dearer than they were a week ago. Rivian has introduced dual-motor versions of both its models, but they have yet to roll off the line...

 

The standard battery pack, which offers a 260-mile (418km) range, is now also unavailable for quad-motor variants, meaning buyers must find an additional $US6000 for a long-range battery to secure a production slot.

 

According to Rivian’s online configurator, the quad motor all-wheel drive R1T Explore (base derivative) is now priced from $US79,500 ($A107,800) with the 314-mile (505km) long-range battery pack or $US89,500 ($A121,400) with the 400-mile (640km) Max battery pack.

 

The high-spec R1T Adventure’s pricing now starts at $US73,000 ($A98,990) and increases to $US85,000 ($A115,260) and $US95,000 ($A128,800) with the same respective changes.

 

As for the R1S electric SUV, the quad motor all-wheel drive Explore entry model is priced from $US84,500 ($A114,600), while the top-grade R1T Adventure jumps to $US90,000 ($US122,045).

 

It is understood the price increases will place Rivian into something of a financial predicament.

 

The company made headlines in November when it was listed on the Nasdaq; at the close of the opening day of trading, Rivian was the sixth most valuable carmaker with a valuation of just under $US100 billion ($A135.6 billion).

 

The company has since been plagued by production delays that have seen its stock price fall by more than 60 per cent.