Freezing shower for those intending to buy a Rivian car, a US startup of electric vehicles that last November it made its debut on Wall Street attracting the attention of investors and coming to be worth more than Ford and GM. Soaring auto parts costs prompted Rivian to revise its price list upwards. Tesla’s would-be rival raised selling prices up to + 20% yesterday due to inflationary pressures and higher component costs. The price increases will affect the majority of customers who have already pre-ordered vehicles.
There was no lack of customer protests. “Well, it’s a sad day for me. Rivian order canceled. So disappointed, ”wrote a customer who lives in Georgia and claims to hold Rivian stock on Facebook. Yesterday the Rivian stock closed at over -8%, bringing the balance from the beginning of the year to almost -40%.
Elon Musk does not fail to comment
The price increase announced by Rivian did not go unnoticed in the eyes of Elon Musk, Tesla CEO, who caustically tweeted that Rivian’s “negative gross margin will be staggering.”
Rivian, in which Amazon.com holds a 20% stake, reported that the starting price of its R1T electric pickup trucks has increased by about 17% and its R1S sport utility vehicles by about 20%. The base price of the Rivian R1T rises to around $ 79,500 from $ 67,500, while the R1S starts at $ 84,500, from $ 70,000.
Generalized price increase
Rivian’s is not an isolated case. Tesla and traditional automakers have raised vehicle prices in the United States to offset the high costs of logistics and supply chain disruption, and dealerships often raise prices due to vehicle shortages.
Globally, the auto industry is facing higher input costs. Truecar.com, the car marketing and pricing website, predicts that i prices rose 15% in February compared to a year ago.
“Like most manufacturers, Rivian faces inflationary pressures, rising component costs and unprecedented supply chain shortages and delays for parts (including semiconductor chips),” said Jiten Behl, Chief Growth Officer at Rivian. The Californian startup failed to meet its production target last year due to supply chain constraints.