Tech

Rivian price hike leads to a shareholder lawsuit


Rivian is facing a shareholder lawsuit after price increase its electric pickups and SUVs and then reverse the process, Protocol reported. The lawsuit alleges Rivian failed to disclose that it would raise the base price of the vehicles to about $12,000, as well as the potential damages it could cause. An individual shareholder has filed a complaint, but is seeking class action status.

On March 1, Rivian revealed the higher prices apply to everyone, except for the earliest pre-orderers, which includes most of those who pre-ordered. The company offered potential buyers another option, as it also introduced dual-engine versions of the R1T and R1S EVs, with both starting prices at $67,500 and $72,500. However, neither of these vehicles will be available until 2024, and both will have a smaller “standard” battery pack that offers less range than the large pack (260 instead of 310 miles).

Two days later, the company reverse prices increased. Anyone who booked before March 1 will have to pay the original price, and those who canceled due to the increase can restore their order for the same price and delivery date. The company’s CEO RJ Scaringe also apologized. “I’ve made a lot of mistakes since starting Rivian over 12 years ago, but this was the most painful one,” he said. “I sincerely apologize and pledge to rebuild your trust.”

Rivian has gained a large amount 10.7 billion dollars funding with investors including Ford and Amazon, which owns the largest shares (22%). The company listed shares through a regular IPO rather than a SPAC merger. It had a “blockbuster debut”, according to CNBC, with an initial valuation of $86 billion. Initial reviews of the R1T electric pickup, including by Engadgetwas positive.

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