Rivian Increases Vehicle Prices by 20% Cites Inflationary Pressure

U.S based electric vehicle manufacturer Rivian Automotive Inc. (RIVN) has increased its electric vehicle prices by 20% citing inflationary pressures and higher component cost. The company made this announcement which drew outrage from the customers on March 2.

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,” said the company’s chief growth officer, Jiten Behl.

The company says that the price of its R1T electric pickup trucks has increased by 17% and that of its R1S sport utility vehicles has gone up by 20%. Rivian says this price hike will affect even customers who had already placed pre-orders for the vehicles.

Additionally, Rivian said prices of various options including wheels, paint and upgrades like reinforced underbody shield have also gone up.

This announcement did not sit well with many customers some of which jad already paced their orders for the electric vehicles. For instance, a Facebook user ‘Zach Jump-Start Marino’ shared a post on the social platform confirming having cancelled his car order.

Well, it’s a sad day for me. Cancelled the Rivian order. So bummed out. Price increase was astronomical and unfair to pre-order holders and early supporters. I’m not paying 94k+ for a mid-size truck,” posted Zach who also confirmed owning shares in Rivian.

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