Rivian rolls back price hike after backlash

Rivian beats Tesla, Ford, GM to build first EV pickup

FoxNews.com automotive editor Gary Gastelu discusses the startup Rivian. 

Rivian is rolling back a recently announced price hike for some customers after the increase contributed to steep drop in the company's stock price this week.

The Rivian R1T quad-motor model originally started at $67,500. (Rivian)

On Tuesday, the electric vehicle company increased the base price of its quad-motor electric pickups and SUVs from $12,000 to $20,000, citing increased parts costs, and initially said the new prices would apply to vehicles that had been pre-ordered, leading to a rash of cancelations.

Rivian CEO RJ Scaringe has now sent a letter to customers admitting that the company misread the situation and "broke the trust that we have worked to build with you."

Rivian CEO RJ Scaringe wrote customers apologizing for the price hike on preorders. (Patrick T. Fallon/Bloomberg)

"As we worked to update pricing to reflect these cost increases, we wrongly decided to make these changes apply to all future deliveries," he wrote.

"We need to plan production costs not only for today, but also for the future."

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TickerSecurityLastChangeChange %
RIVNRIVIAN AUTOMOTIVE INC.50.78-2.78-5.19%

The original prices have been reinstated for anyone who placed a preorder by March 1 when the new prices were posted, and canceled orders that were placed by then can be resubmitted without penalty.

The Rivian R1S is an SUV that shares the R1T’s platform. (Rivian)

Rivian has also added several dual-motor trims to its lineup starting at the quad-motor's old price of $67,500.

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