Rivian Automotive Inc (NASDAQ:RIVN) is raising the starting prices of its two electric vehicles currently on sale by up to 20% due to inflationary pressure and higher component costs, Reuters reported on Tuesday, citing a company executive.
What Happened: Irvine, California-based Rivian is hiking the price of its R1T electric pickup by 17% and its R1S electric sports utility vehicle by 20%.
The R1T electric pickup truck currently goes on sale at $67,500, while the R1S starts at $72, 500 onwards.
Rivian has attributed the price hikes to soaring inflation, input costs, unprecedented supply chain shortages and delays for parts, as well as higher expenses for some options, upgrades, and accessories, according to the report.
Why It Matters: Rivian is among a host of EV startups that went public last year without first beginning deliveries to customers. The EV maker fell short of its target of making 1,200 electric vehicles in 2021, having produced just 1,015 vehicles and delivering 920.
Rivian, backed by Amazon.com Inc (NASDAQ:AMZN) and Ford Motor Co (NYSE:F), in November reported a steep quarterly loss in its first earnings report as a publicly-listed company.
Shares in the company have been under pressure since the start of this year after CEO RJ Scaringe said Rivian was delaying deliveries of its 400-mile R1T pickup truck to 2023.
Price Action: Rivian shares closed 8.4% lower at $61.9 a share on Tuesday. The stock is down 39.7% so far this year.
Photo by Rivian on Wikimedia
