After bumping pre-order prices $12k, Rivian saw serious pushback
Company CEO apologizes for “breaking trust”
On March 1st, Rivian announced that it was adding new variants to the company’s lineup, and that those variants were coming with a price hike that would affect even buyers who had already made reservations. As those reservation holders began to cancel their orders in droves, the company changed course quickly, giving buyers their originally expected price.
The price hikes were big. $12,000 more for the quad-motor Rivian R1T pickup and R1S SUV. That was to provide room for a new dual-motor setup and smaller standard battery pack. For buyers who had been waiting a very long time for their trucks, it was a big surprise.
Wednesday, CEO RJ Scaringe sent an email to reservation holders apologizing. More importantly, the company said that anyone who had a pre-order before March 1 would get their initial price. Anyone who cancelled on or after the March 1 announcement would be able to get back on the list at the original price.
As we worked to update pricing to reflect these cost increases, we wrongly decided to make these changes apply to all future deliveries, including pre-existing configured preorders,” Scaringe wrote in the email to reservation holders (via Roadshow). “We failed to appreciate how you viewed your configuration as price locked, and we wrongly assumed the announced Dual-Motor and Standard battery pack would provide configurations that would deliver price points similar to your original configuration. While this was the logic, it was wrong and we broke your trust in Rivian.”