Rivian announced today that has raised the price of its R1T pickup by 17% and R1S SUV by about 20%. Increases in the cost of raw materials, inflationary pressure and the already known chip shortage issue are the reasons for this price increase that will affect also the existing reservation holders.
“The Rivian R1T’s price is increasing 17% which will increase the base cost from $67,500 to approx $78,975. The R1S will see a whopping 20% price increase, bringing the new base price from $70k to about $84k.”
“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).
This rise in cost and complexity due to these challenging circumstances necessitate an increase to the prices of the R1T and R1S models we offer today — prices which were originally set in 2018. This decision will allow us to continue to offer competitive products that maintain the high standard of quality, performance and capabilities that our customers expect and deserve from Rivian.
Along with the adjusted prices for our current offerings, we are also announcing Dual-Motor AWD and Standard battery pack options for R1T and R1S, which will provide a broader range of choices for customers as part of our expanding portfolio of options, upgrades and accessories.” — Rivian said in an emailed statement. Also acessories prices increased with the Rivian Camp Kitchen costing now $6,750, up from 5,000.
Last week, Rivian‘s Chief Executive Officer R.J. Scaringe said that the company is “making progress” in the increase of production for electric vehicles at its Normal, Illinois, assembly plant and is aiming to take 10% share in the EV market by 2030. The global semiconductor chip shortage is seen by Scaringe as the “most painful” constraint in the push to build production.
Earlier this month, the company hired Tim Fallon to be the new Vice President of Manufacturing. Fallon previously worked at Nissan, where he was vice president for manufacturing at the company’s assembly plant in Canton, Mississippi. Tim Fallon worked with Nissan for more than 16 years having 6 different roles before reaching the Manufacturing VP position.
According to SEC’s filling document unveiled recently, George Soros’ Fund Management, revealed a new stake in electric truck Rivian Automotive valued at $2 Billion. However, with the recently decrease of the stock price, the investment worths noe around $1.17 billion.
Recently, the company said it expects to soon be delivering as many as 200 electric R1T pickup trucks per week – quadrupling its production rate from where it was some time ago, and putting it on track to surpass 10,000 pickups manufactured this year.