Rivian Increases Prices by Up to 20%, Shows Decreasing Battery Values Are Gone

In a recent article, we warned our readers that more automakers willing to build electric cars with the same raw material sources we have today would deepen their scarcity, driving prices up. Rivian made that very clear by increasing by up to 20% how much people need to pay for its vehicles. That move made several reservation holders give up on their cars.
Rivian R1S and R1T 10 photos
Photo: Rivian
Rivian R1T and R1SRivian R1T and R1SRivian R1SRivian R1TRivian R1TRivian R1TRivian R1T and R1S InteriorRivian Skateboard PlatformRivian Skateboard Platform
To be fair, Reuters reports that Laura Schwab had already warned Rivian would have to increase its prices before raw material shortage hit EVs. The company’s former head of sales and marketing is suing Rivian for its “toxic bro culture.” Schwab was fired in October 2021 after questioning why she was excluded from decisions pertinent to her area, including those on pricing.

According to Reuters, Rivian disclosed that it would have to increase the base price of the R1T from $67,500 to approximately $79,500, which would represent a 17% climb. The R1S’s starting price tag would rise from $70,000 to $84,500, or around 20% more. The problem is that the electric SUV’s actual price is $72,500 on Rivian’s website. If the percentage is still correct, the R1S price will end up being $87,000.

To prevent reservation holders from giving up on their orders, Rivian promised it would create a new version of its electric pickup truck and the electric SUV. In 2024, they will have two motors instead of four and a smaller battery pack. Notice that the role raw materials play in this price hike is pretty evident: fewer motors and batteries are key to reaching a value that was theoretically possible months ago in the current configuration.

Unfortunately for Rivian, that was not enough. Many reservation holders are mad that the company did not honor the price they have agreed to pay and are now asking for their money back. The company demanded a fully refundable $1,000 deposit for these pre-orders.

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About the author: Gustavo Henrique Ruffo
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Motoring writer since 1998, Gustavo wants to write relevant stories about cars and their shift to a sustainable future.
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