Rivian Raises Electric Vehicle Prices, Citing Inflation and Supply Chain Issues

David Shultz

David Shultz reports on clean technology and electric vehicles, among other industries, for dot.LA. His writing has appeared in The Atlantic, Outside, Nautilus and many other publications.

Rivian
Image courtesy of Rivian

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Inflation is the economic buzzword of the moment, and it appears that rising costs are impacting electric vehicle manufacturer Rivian as well.

The Irvine-based company announced yesterday that it intends to raise the price of its electric vehicles to account for inflation and supply chain woes. Rivian’s R1T pickup truck will see a 17% increase to its base price, to $79,500, while its R1S SUV will be 20% more expensive, or $84,500.


“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),” Rivian chief growth officer Jiten Behl said in a statement.

The price hikes will apply to most Rivian pre-order holders with a few exceptions, such as those who are finalizing their transactions or are close to receiving delivery of their vehicles. The company did not provide specific numbers around how many customers will be impacted.

The move has been met with derision on social media, drawing ire from pre-order holders as well as snarky analysis from Tesla CEO Elon Musk. Investors haven’t taken kindly to the news amid indications that many with pre-orders could cancel their reservations; Rivian’s stock has fallen more than 20% since Monday’s close, to $53.56 per share.

While nobody wants to hear that the car they pre-ordered is going to cost more than advertised, inflation and supply chain issues are real problems without easy solutions for automakers.

The chip shortage, in particular, has pushed manufacturing costs higher and hurt carmakers’ ability to meet demand. Contemporary cars can contain tens of thousands of semiconductor chips, and even the most vertically-integrated car company can’t produce their own chips, Rivian included.

Rivian also noted that its previous price points were set in 2018, when the average MSRP for a new car was around $38,000 at the start of the year. Since then, that figure has swelled to almost $46,000, according to Edmunds data—an increase of more than 20%.

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Genies Wants To Help Creators Build ‘Avatar Ecosystems’

Christian Hetrick

Christian Hetrick is dot.LA's Entertainment Tech Reporter. He was formerly a business reporter for the Philadelphia Inquirer and reported on New Jersey politics for the Observer and the Press of Atlantic City.

Genies Wants To Help Creators Build ‘Avatar Ecosystems’

When avatar startup Genies raised $150 million in April, the company released an unusual message to the public: “Farewell.”

The Marina del Rey-based unicorn, which makes cartoon-like avatars for celebrities and aims to “build an avatar for every single person on Earth,” didn’t go under. Rather, Genies announced it would stay quiet for a while to focus on building avatar-creation products.

Genies representatives told dot.LA that the firm is now seeking more creators to try its creation tools for 3D avatars, digital fashion items and virtual experiences. On Thursday, the startup launched a three-week program called DIY Collective, which will mentor and financially support up-and-coming creatives.

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Here's What To Expect At LA Tech Week

Christian Hetrick

Christian Hetrick is dot.LA's Entertainment Tech Reporter. He was formerly a business reporter for the Philadelphia Inquirer and reported on New Jersey politics for the Observer and the Press of Atlantic City.

Here's What To Expect At LA Tech Week

LA Tech Week—a weeklong showcase of the region’s growing startup ecosystem—is coming this August.

The seven-day series of events, from Aug. 15 through Aug. 21, is a chance for the Los Angeles startup community to network, share insights and pitch themselves to investors. It comes a year after hundreds of people gathered for a similar event that allowed the L.A. tech community—often in the shadow of Silicon Valley—to flex its muscles.

From fireside chats with prominent founders to a panel on aerospace, here are some highlights from the roughly 30 events happening during LA Tech Week, including one hosted by dot.LA.

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