US electric vehicle start-up Rivian has announced it’s raising the prices of its two models.
The quad-motor R1T electric pick-up truck has gone up by 17 per cent to US$79,500 (AU$109,400), while its SUV-bodied sibling, the R1S, has jumped from US$70,000 to US$84,500 (AU$96,300 to AU$116,200) – an increase of 20 per cent.
Rivian is applying the price hike to all existing orders, or giving customers the option to change their vehicle to a lower specification, and with a significantly longer wait time.
“Like most manufacturers, Rivian is being confronted with inflationary pressure, increasing component costs, and unprecedented supply chain shortages and delays for parts (including semiconductor chips),” Rivian’s chief growth officer Jiten Behl said in a statement to Reuters.
In an attempt to offer more affordable options, Rivian is offering dual-motor R1T and R1S variants with decreased performance and a smaller battery pack, priced from US$67,500 and US$70,000 respectively. However, it’s understood these vehicles won’t be delivered until 2024.
The five-seater R1S has also been dropped from the line-up, with seven-seater models only being offered.
The company has received widespread negative feedback from customers holding reservations, with a number announcing they would be cancelling their orders due to the price change.
Tesla CEO Elon Musk also commented on the news, writing on Twitter: “Our primary challenge is affordability. Creating an expensive truck is relatively easy. If it is extremely hard [for Tesla to make a cheap truck], despite our much greater economies of scale and better technology, then it is damn near impossible for others.”
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Keyword: Rivian increases prices by up to 20 per cent, cites inflationary pressure