Rivian bumps price of R1T and R1S electric vehicles nearly 20%03/02/2022
Rivian raised the price of its R1T electric pickup truck and R1S electric SUV by $12,000 on Tuesday, firmly establishing the American automaker as a luxury brand.
The price of the R1T pickup, which just went on sale late last year, increases from $68,575 to $80,575 (17.5%), and the R1S electric SUV, which hasn’t yet been delivered to purchasers, increases from $73,575 to $85,575 (16.3%). The base prices for the vehicles include a $1,075 destination charge.
Higher component costs, inflationary pressure, and continued supply chain issues were to blame for the price increase, according to a statement from Rivian, a startup that went public in November 2021.
“These price increases—the result of inflationary pressure on the cost of supplier components and raw materials across the world—will allow us to maintain product excellence as we continue investing in electrification for our shared future,” Team Rivian announced to preorder holders of the R1S, according to Rivianownersforum.com. “We remain committed to offering compelling products and helping drive competition, inspiring as many drivers as possible to switch to electric vehicles.”
It remains to be seen if preorders of the R1S will be canceled due to the price hike. The price hikes apply to any order holder who has not completed or fulfilled their order.
Rivian promised a new entry-level variant by 2024 with a dual-motor all-wheel-drive layout with a smaller Standard battery pack as an alternative to the current base models with their more expensive quad-motor AWD systems and Large pack. The Large pack has a range of 314 or 316 miles for the pickup and SUV, respectively. The dual-motor Small pack will have an estimated range estimated of 260 miles, according to Rivian.
On the Rivian R1S configurator, the dual-motor setup costs $6,000 less, and the Standard pack cuts the price by another $6,000. That adds up to $12,000; in other words, Rivian has promised a new base model with the same base price as the old base model that had two extra motors and a larger battery pack. The new base model will cost $73,575 for now.
Prices for new cars have increased across the board to varying degrees. The hikes for electric cars with minimal content changes are especially stark, however. Tesla increased the price of the Model 3 and Model Y, its electric vehicles for the masses, twice last year, amounting to a $6,000 increase on the Model Y. The lack of a Standard Range model further drove up the base price of its bestseller to above $60,000.
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