Rivian Shares Tumbled Nearly 9% in Morning Trading

Rivian shares tumbled nearly 9% in morning trading after the electric vehicle startup hiked vehicle prices by 20%, citing inflationary pressure.

U.S. electric vehicle startup Rivian Automotive Inc said on Tuesday it is raising the starting price of its R1T electric pickup trucks by about 17% and its R1S sport utility vehicles by about 20%, citing inflationary pressure and higher component costs.

The price increases would affect many of the customers who have already placed pre-orders for the vehicles. Some customers expressed frustration and threatened to cancel orders on social media.

“Like most manufacturers, Rivian is being confronted with inflationary pressure, increasing component costs, and unprecedented supply chain shortages and delays for parts (including semiconductor chips)," Jiten Behl, Rivian's chief growth officer, said in a statement.

Rivian, in which Amazon.com Inc holds a 20% stake, said the cost of certain options, upgrades, and accessories has also increased.

The California-based startup produced 1,015 vehicles last year, coming up short of its target of 1,200 due to supply-chain constraints.