Rivian Hikes EV Prices by 20%, Spurs Musk Taunt, Customer Ire

Why Rivian Stock Plunged Again Today

Rivian Hikes EV Prices by 20%, Spurs Musk Taunt, Customer Ire
Source: Getty Image

The prices for new electric vehicles from electric truck maker Rivian Automotive are rising to help the start-up offset higher costs. The direction of all car prices has been up in recent months, so a hike from another automaker doesn’t seem like a surprise. Investors are reacting with nervousness anyway.

Rivian stock (ticker: RIVN) fell nearly 11% to $55.18 a share on Wednesday. The S&P 500 and Dow Jones Industrial Average each were up more than 2%.

One investigator said Rivian Automotive ( RIVN – 13.49% ) was confronting headwinds yesterday, and portions of the EV fire up plunged today after the organization recognized that view. Rivian stock was down 13.3% as of 10:30 a.m. ET.

The drop is coming a day after the stock additionally declined when individual EV fire up Lucid Group sliced its creation gauges for 2022 because of store network and operations battles. Likewise yesterday, Wells Fargo investigator Colin Langan cut his cost focus for Rivian as he dreaded the organization is looking close term headwinds, as indicated by Barron’s. The huge news today is that Rivian recognized he is right, as expanding costs are driving the organization to essentially raise costs on its electric pickup truck and SUV models.

Rivian trucks driving on the back road in woodland.

Langan highlighted increasing loan fees, expanding contest, and the potential for frustrating vehicle conveyance information when Rivian reports its final quarter and entire year 2021 outcomes one week from now on March 10. Langan additionally cut his objective cost on Rivian shares from $110 to $70 per share.

Clear told financial backers yesterday that on account of inventory network issues, it’s projected 2022 creation volume would come around up to 40%. Rivian had comparable remarks when it missed its own projected conveyance volume for 2021, yet it hasn’t yet tended to its projections for 2022.

In any case, Rivian Chief Growth Officer Jiten Behl said in an explanation, “As most makers, Rivian is being stood up to with inflationary strain, expanding part costs, and extraordinary production network deficiencies and postponements for parts (counting semiconductor chips),” reports Reuters. Due to those expanding costs, the organization said it should raise the base cost of its R1T pickup truck from $67,600 to about $79,000. What’s more, the R1S SUV model will bounce from a beginning cost of $70,000 to $84,500, as per the report.

That is not uplifting news for a new business looking to rapidly develop client dependability and its image. Furthermore, today’s not uplifting news for investors, by the same token.