Rivian has altered the deal, and now its EVs will cost buyers up to $20K more

Photo by Mitchell Clark / The Verge

Rivian increased the estimated prices of its R1T electric pickup and R1S electric SUV by up to 20 percent. The company is applying new estimates to new orders and changing them for reservation holders who don't have a vehicle in production.

This is the first significant change in pricing Rivian has revealed since orders opened, and it seems like no one was ready for a change this big. Prospective EV buyers are used to fluctuations in the pricing of cars fromTesla, but in that case, prices are usually locked in from the time they put in their orders

Rivian's announcement of the ability to pre-order a dual-motor configuration of both the R1T and R1S along with a smaller battery pack option was included in the news of the price increase.

There are price hikes that sting, there are price hikes that are offensive, and then there are price hikes that verge on sociopathic. My R1T going from $74,950 up to $92,700 overnight is the latter.

— Bradley Kent (@bradley_kent) March 1, 2022

The quad- motor configuration of the R1T with 314 miles of range used to start at $67,500, but now that price point will only get you a dual-motor and standard battery pack configuration. The R1T and R1S quad-motor configurations start at $79,500 and $84,500, respectively.

The price hike was attributed to global chip shortages and supply chain issues.

“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). This rise in cost and complexity due to these challenging circumstances necessitate an increase to the prices of the R1T and R1S models we offer today — prices which were originally set in 2018. This decision will allow us to continue to offer competitive products that maintain the high standard of quality, performance and capabilities that our customers expect and deserve from Rivian. Along with the adjusted prices for our current offerings, we are also announcing Dual-Motor AWD and Standard battery pack options for R1T and R1S, which will provide a broader range of choices for customers as part of our expanding portfolio of options, upgrades and accessories.”

The people who ordered the truck are not happy about the price increases. Many customers have taken to the internet to share their plans to cancel their orders. The new dual-motor configuration announcement has nearly 400 replies, including many customers who were disappointed in the price increase.

YIKES!!! @Rivian with another swing and a miss. They now want over $100,000 for the truck I reserved at $85,000 a few months ago (and not honoring locked-in prices as Tesla does). Honestly, this is cancellation worthy. An extra $15K is INSANE. pic.twitter.com/TEXXz4VMRM

— Quinn Nelson (@SnazzyQ) March 1, 2022

Price of my @Rivian Truck just went up $10k. As a day one preorder holder this feels suuuuper bait and switchy. Not a fan.



The tone of my video would have changed if I had known it was a $100,000 dollar truck. Extra zeros matter.

— JerryRigEverything (@ZacksJerryRig) March 2, 2022

The creators of Jerry Rig Everything and Snazzy Labs took to social media. Both were early fans and reservation holders of Rivian's R1T truck, but now they are speaking out about feeling like they experienced a bait and switch. Five months ago, people at Rivian told him they were confident in the pricing of the cars. They lied to me, customers, and investors.