Rivian cancels its R1T and R1s entry-level models electric vehicles (EVs), essentially hiking their base prices as the automaker lets go of its cheapest pickup truck and SUV.
The all-electric car maker has confirmed that it has already canceled the entry-level variants of the R1S and R1T.
The Rivian stock price was valued at over $100 billion after it was publicized at the world's largest IPO in 2021. With this, Tesla CEO Elon Musk has given some warning that Rivian may face.
The news initially broke after customers shared an email detailing the cancellation of cheaper trims to an online forum.
Rivian Cancels R1T, R1S Entry-Level EVs
According to a recent report by Business Insider, one of the most exciting all-electric pickup trucks is no less than the Rivian R1T.
While the entry-level option of the R1T sells for only $67,500, the automaker has yet to release this cheaper model.
However, even before Rivian goes about its plan to release the cheaper R1T option, the said model has been abruptly discontinued.
A news story by The Verge reports that the EV maker disclosed in an email to its customers that it is canceling the $67,500 base model of its all-electric pickup truck.
And as Rivian let go of its R1T Explore trim, the new entry-level would be its Adventure model.
Given the changes, the email gives the customers of the EV startup a choice to either cancel their orders or upgrade to the new base model.
Besides the cancelation of the cheapest Rivian electric pickup, the automaker has revealed that it has "discontinued" the base model of its all-electric SUV, the R1S.
The spokesperson of Rivian, Tanya Miller, told The Verge that the latest move of the EV maker seeks to give the firm a chance to potentially produce more vehicles.
The Rivian spokesperson says that canceling the base Explore trim would allow the carmaker to focus its efforts on the Adventure model.
And in turn, Miller states that it should help Rivian "streamline" the supply chain, which could potentially allow the tech firm to produce more vehicles moving forward.
It is worth noting that customers with existing pre-orders of the cheapest R1T and R1S trims would have to decide on two routes. Whether they are upgrading to a more expensive option or opt to choose to cancel their orders.
Read Also: Rivian Stock Drops: Supply Chain Issues Hinder More EV Production
Rivian R1T, R1S Price Hike
The latest move of Rivian essentially jacks up the entry-level price of its EVs by a few thousand dollars.
NEW YORK, NEW YORK - NOVEMBER 09: The new all-electric pickup truck by Rivian, the R1T, sits at one of its facilities on November 09, 2021 in the Brooklyn borough of New York City.
To be more precise, the Explore trim only sells for $67,500, whereas the new entry model, the Adventure, starts to the tune of $73,000.
The Verge did the math, and the price hike is going to cost customers roughly $6,000 when they choose to upgrade their orders.
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