SAN FRANCISCO — U.S. electric vehicle startup Rivian Automotive Inc said on Tuesday it was raising the starting price of its R1T electric pickup trucks by about 17% and its R1S sport utility vehicles by about 20%, citing inflationary pressure and rising component costs.
The price increases would affect many customers who have already placed pre-orders for the vehicles. Some customers expressed their frustration and threatened to cancel orders on social media.
“Like most manufacturers, Rivian is facing inflationary pressure, rising component costs, and unprecedented supply chain shortages and delays for parts (including semiconductor chips) “said Jiten Behl, Chief Growth Officer of Rivian, in a statement.
Rivian, in which Amazon.com Inc has a 20% stake, said the cost of some options, upgrades and accessories has also increased.
The California-based startup produced 1,015 vehicles last year, falling short of its target of 1,200 due to supply chain constraints.
Input costs, which were showing signs of easing, could now see a surge on the back of crude oil topping $100 a barrel for the first time in seven years and aluminum, a key material in manufacturing of vehicles, reaching record prices.
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