According to Automotive News, a Rivian investor sued the company on the grounds it had mispriced its EVs before the IPO only to hike the prices shortly after Rivian got listed. Charles Larry Crews filed a complaint in the U.S. District Court in San Francisco, saying that the price increase “would tarnish Rivian’s reputation as a trustworthy and transparent company.” He wasn’t impressed with Rivian CEO RJ Scaringe taking corrective action and apologizing either, calling it “a futile attempt at damage control.”
The lawsuit came after Rivian announced on March 1 it would be raising R1S's price to $84,500 from $70,000, and the R1T's price to $79,500 from $67,500. Two days later, the EV startup backtracked saying that preorders as of March 1 would not face the higher prices. Customers who canceled orders could also reinstate them at the original prices.
In the March 3 letter to customers, Scaringe said inflationary pressures and higher component costs led to the price increases. “It was wrong and we broke your trust in Rivian,” Scaringe wrote in the letter. However good this was for the company’s image, it also means Rivian will sell the vehicles at or under cost for the existing reservation holders, believed to be around 30,000.