(Bloomberg) — Rivian Automotive Inc. is raising prices on its debut vehicles for retail buyers, citing a shortage of semiconductors and higher costs for other components.
The sticker price of Rivian’s battery-electric pickup, called the R1T, will rise 17% and the price of its R1S sport utility vehicle model will increase 20%, the company said Tuesday.
“Like most manufacturers, Rivian is being confronted with inflationary pressure, increasing component costs, and unprecedented supply-chain shortages and delays for parts” including semiconductors, Rivian’s Chief Growth Officer Jiten Behl said in a statement.
The automotive industry globally is facing higher input costs while also experiencing greater leeway to increase prices. Average transaction prices hit a record $47,243 in December and Truecar.com, an auto pricing and marketing website, projects they rose 15% in February from a year ago.
Irvine, California-based Rivian, a closely followed upstart, is seen as a potential competitor to industry leader Tesla. While the company has delivered relatively few vehicles — 920 as of Dec. 31 — its listing in November was the sixth biggest in U.S. history. Rivian is backed by big names like Amazon.com Inc. And T. Rowe Price.
Debut versions of the R1T with a quad-motor, all-wheel drive and a large battery pack, giving around 310 miles of range, started at $67,500. That vehicle will now cost around $79,500. The R1S with the same specifications will rise from around $70,000 to around $84,500.
Rivian only started production and deliveries of the pickup in September after having delayed its release several times due to supply chain challenges. The SUV went in to limited production in December.
Starting 2024, Rivian plans to offer a dual-motor version of the R1T with a “standard” sized battery pack, that allows around 260 miles of range, for $67,500 — the same starting price that Rivian launched its vehicles at last year.
(Updated with details on prices.)
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