Here’s why Rivian is suddenly raising EV prices

  • Rivian is raising prices by about $12,000 to $14,000 for its four-motor R1T pickup and R1S sport utility models.
  • The electric vehicle maker cites supply chain issues with chips and other components in announcing price hikes.
  • Rivian says base twin-engine versions of its two main offerings are on the way in 2024, with engines of its own design.

    Even though we’re used to seeing dramatic price increases everywhere now, from groceries to car dealerships (Above all auto dealers), the price hikes instituted by Rivian this week are certainly raising eyebrows.

    The EV maker has raised prices for the four-motor R1T pickup from about $67,500 to $79,500, while raising the price of the four-motor R1S SUV from about $70,000 to $84,500, before any inducements and destination charges.

    The causes of price increases?

    The company cites supply chain issues related to chips and other component shortages across the industry.

    “These price increases – the result of inflationary pressure on the cost of components and raw materials from suppliers around the world – will allow us to maintain product excellence while continuing to invest in electrification for our shared future. “said the automaker in an email to owners. .

    Rivian’s stock takes a hit.

    Those waiting for their vehicles received even higher price increases, with owners reporting increases based on the options they selected for their unbuilt vehicles.

    “The base price of the vehicle and the cost of certain options, upgrades and accessories have increased. On the R1T Adventure and Explore packages, the tonneau cover is now a selectable upgrade,” said an email to an owner.

    Rivian began production of the R1S sport utility, but as with other models, the more expensive variants are produced first.

    Rivian

    Unannounced but significant price increases may sound familiar to those who have purchased a Tesla over the past decade, but strangely enough, Rivian has also reported price changes in the past, even before its production began. R1T pickup.

    In response to Tesla’s announcement in 2019 of a target price of $39,900 for its yet-unbuilt Cybertruck, Rivian lowered the target price of its yet-unbuilt R1T from $69,000 to $67,500.

    Now Rivian has taken a big step back, although of course 2019 was a different world in many ways.

    The good news, if any, is that this week Rivian is announcing dual-motor versions of the R1T and R1S, though we won’t see them for at least two years. So, in a way, the original prices will now apply to these future entry-level models, which is how Rivian describes this price shake-up.

    Entry-level dual-motor versions of Rivian’s two main models will arrive in 2024 and will meet previously announced prices, with the dual-motor R1T set to start at $67,500, while the dual-motor R1S will now start at $70,000. $, before destination fees and incentives.

    Of course, future events could influence the starting price of this model before 2024 arrives.

    Can component costs really be responsible for price increases of up to $14,000, or is Rivian just bolstering the bottom line? Please add your comments below.

    The base models announced will include motors from Rivian itself instead of supplier Bosch in the current four-motor versions of its vehicles, as well as the option of a standard battery with a range of 260 miles. Dual-motor versions will still deliver 600 horsepower and 600 lb-ft of torque.

    However, as with other potential models, there’s still a long way to go between now and 2024. Rivian is set to see several direct competitors to its current offerings, with much lower prices. The electric vehicle manufacturer has tried to occupy a unique niche, but it must also maintain this niche in the medium term.

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