Citing rising component and materials costs, Rivian raised prices for its two electric vehicles earlier this week. The price hike impacts existing order holders and new customers alike, which didn’t go over so well, as you might imagine. Today, the company walked that decision back, after facing complaints and seeing canceled orders from angry customers.
Rivian R1T and R1S
Photo courtesy of Rivian
Rivian raised its prices by 17 percent and 20 percent for the R1T pickup and R1S SUV, respectively. Almost immediately, the move caused a stir, with customers and half the internet lobbing criticism and complaints at the automaker. Now, though, it seems the company is ready to make amends. In a letter sent to customers, Rivian CEO RJ Scaringe noted that prices for preorders placed before March 1 will roll back to the original price, and noted that anyone who canceled their order can place a new one and keep their place in line, along with their original vehicle configuration. Scaringe says that going forward, the company’s dual-motor and standard battery pack offerings are in place to give buyers a more affordable alternative to the quad-motor, extended-range vehicles it sells.
New photos show Rivian R1S on, off the production line
In his letter, Scaringe apologizes for the change. He explains that the move broke the trust Rivian has with its customers and notes that the company didn’t handle communication of the changes well. He said that components from semiconductors to sheetmetal are all more expensive, and apologizes for applying the price increases to all future orders, regardless of when they were placed.