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Rivian Automotive Inc. late Tuesday said that inflation, rising costs and supply-chain shortages have pushed it to increase the prices of its electric pickup and SUV. Rivian
RIVN,
-8.36%
shares fell 0.8% in the extended session Tuesday after ending the regular trading day down 8.4%.
The base price for a dual-motor, standard-battery Rivian’s pickup, the R1T, will increase to $73,500, from about $67,500, with pricier trims including an quad-motor option starting at $79,500 and above. Rivian introduced the dual-motor option on Tuesday.
Rivian’s R1S, the company’s SUV, will increase to $72,500, from about $70,000, for a dual-motor, standard-battery base version.
“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),”Jiten Behl, Rivian’s chief growth officer, said in a statement.
“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,” he said.
Along with the price increases, Rivian also announced a dual-motor, all-wheel drive and a standard 260-mile battery pack options for the vehicles, which are billed as “electric adventure vehicles.”
That will provide customers with more choices, Behl said.
Shares of Rivian have dropped 40% so far this year, compared with loss of around 9.7% for the S&P 500 index
SPX,
-1.55%.
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