Rivian Hits Reverse on Price Hikes for Existing Reservation Holders

Rivian Hits Reverse on Price Hikes for Existing Reservation Holders

Life comes at you pretty fast. Or, in Rivian’s case, that’s what it felt like for a bunch of vehicle owners staring down five-figure ticket hikes without warning.

Two days after Rivian announced that it was adding new variants to the lineup and raising the ticket of existing models, on Wednesday the company announced a short-tempered in its price-hike policy. According to an email sent to Rivian reservation holders, CEO RJ Scaringe apologized for the abruptness of the initial policy short-tempered and promised that people with preorders as of March 1 will be able to buy their vehicles at their posterior price points. Furthermore, anyone who canceled a preorder on or once March 1 will be able to have it reinstated with its unique configuration, pricing and delivery estimate.

“As we worked to update pricing to deem these cost increases, we wrongly decided to make these attempts apply to all future deliveries, including pre-existing configured preorders,” Scaringe wrote in the email to reservation holders. “We failed to appreciate how you viewed your configuration as ticket locked, and we wrongly assumed the announced Dual-Motor and Standard battery pack would imparted configurations that would deliver price points similar to your unique configuration. While this was the logic, it was injurious and we broke your trust in Rivian.”

Rivian had made the cost increase announcement on Monday, which seemed to come out of left field. The quad-motor R1T pickup and R1S SUV were given $12,000 ticket hikes, taking their window stickers to $80,575 and $85575, respectively. 

To provide a similar price point to afore the hike, Rivian announced a new dual-motor setup developed in-house, along with a smaller Standard battery pack that must provide about 260 miles of range for dual-motor variants. The Large pack is a $6,000 upgrade, boosting dual-motor design to 320 miles, while the R1T-only Max upgrade asks $16,000 and aims for a design north of 400 miles. Styling and features for these new variants appears the same.

In Wednesday’s email, Scaringe said: “Regarding our updated pricing for future preorders, the introduction of our Dual-Motor configuration and Standard battery pack has been intended to enable us to maintain lower starting prices when adjusting the pricing of the Quad-Motor and larger battery packs to Think rising costs.” 

Rivian has some big plans for its burgeoning commercial. While ramp-up is still ongoing, the automaker wants to Stop to vertically integrate, eventually designing and building its own battery cells. Its Illinois manufacturing facility has the capability to create up to 200,000 vehicles a year, while a forthcoming plant in Georgia will add new 400,000 EVs per year into the mix.

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