According to an online forum for customers and later confirmed by the company, Rivian canceled the entry-level version of the R1T, raising the price of its base model electric truck by over $6,000.
The company said in an email to customers that it is canceling the base “Explore” model, which starts at $67,500, in favor of a $73,000 “Adventure” trim. Customers can either upgrade to the more expensive trim level or cancel their orders, the company advised. rivian “Closed” too The less expensive trim for its R1S electric SUV, which is expected to start shipping to customers later this year.
In an email to pre-order holders, a copy of which was shared with ledge By Rivian spokeswoman Tanya Miller, the company says it has made the decision not to offer the Explore package so that it can “deliver as many vehicles as possible.”
The email said that “focusing on the Adventure trim package” will help Rivian “streamline” its supply chain and build more vehicles. In its most recent earnings report, the company reported deliveries of 4,467 vehicles and restated its target of making 25,000 this year.
If customers choose to upgrade to the Adventure model, the price increase will be determined based on when they originally placed their order. If they cancel their pre-order, they will get a refund on their deposit. The company states that “only a small percentage of customers” ordered the Explore model.
One customer on the Rivian Owners Forum says they were “absolutely infuriated and disappointed” when they received the email, explaining that upgrading to a higher-end truck would add about $8,000 to the price tag.
This isn’t the first time Rivian preorder holders have been upset with the price hike. In March, the company raised the estimated prices of its vehicles by up to 20 percent, equivalent to some preorder holders being told their trucks would be $10,000 or $20,000 more expensive. But after the uproar, the company withdrew the price hike a day later, apologizing to the customers. Now, the company has more or less managed to increase the entry price of the R1T and R1S to $5,500 and $6,000 respectively.
According to Miller, “There have been no deliveries of the Explore package to date.” Declaring electric vehicles at a price that most customers wouldn’t actually pay – Tesla originally announced that the Model 3 would start at $35,000, but actually getting an EV for that price proved extremely difficult. It happened, and Tesla eventually stopped offering it.
Rivian has been facing some financial storms lately. Last month, it laid off 6 percent of its workforce, and it reported a net loss of $1.71 billion for Q2 2022.
Earlier this month, Ford announced that the price of its electric pickup truck, the F-150 Lightning, would increase to $7,000 across all trim levels when it goes back on sale.