Rivian reverses course on price hike for reservation holders

Details. Rivian acknowledged in a letter to customers that it “broke the trust that we have worked to build with you” and “wrongly decided” to make price increases retroactive to past reservations.

Between the lines: Facing inflation, Rivian had planned to increase the price of the R1T pickup from $67,500 to $79,000 and the R1S SUV from $70,000 to $84,000.

• “They know they’re probably going to have to charge more to remain profitable because of what it’s going to cost to produce their vehicles,” iSeeCars analyst Karl Brauer tells Axios.
• The company's stock has lost about one-sixth of its value this week as it's see-sawed from price hikes to no price hikes.

Our thought bubble: Startup EV companies like Rivian and Lucid Motors have enjoyed a honeymoon period, but customers will revolt if they're not treated fairly, no matter the company.

• “The last thing you want to do, when perception might suggest that things aren’t going your way, is appear desperate,” Brauer says. “Desperation in any relationship is one of the least attractive characteristics.”