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Rivian Backtracks on Price Increase -Breaking

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© Reuters

Sam Boughedda

Investing.com — After announcing the price increase, it was only a few days before they announced their decision. Rivian Automobile Inc (NASDAQ) has retracted, saying they have “broke trust we worked so hard to establish with you.”

This will not help the backlash, but it is still to be seen. Rivian shares continued to slide Thursday with a 3% drop, in addition to Wednesday’s 13% fall.

Customers were angered Tuesday when the electric vehicle manufacturer revealed that it had increased its selling prices by 20% as a result of inflationary pressures, higher component costs and other factors. Customers who placed preorders on the vehicle were most affected by these price hikes.

Rivian changed his mind just two days later. RJ Scaringe, CEO of Amazon-backed company Rivian, apologized to his customers in a letter.

Scaringe said that components and materials have gone up in price for building cars.

He explained that while we were updating pricing to reflect the cost rises, we made a mistake and decided these changes would apply to future deliveries. This includes pre-existing preorders.

Scaringe said, “As we showed earlier in the week trust is difficult to build but easy to lose. I have spoken to many of your over the last 2 days and fully understand how you feel. Rivian has seen many errors since its inception more than 12 year ago. But this was the worst. “I am sorry. I will rebuild your trust.

“… Anyone who placed a Rivian Preorder before the March 1 Pricing Announcement, their original price will still be valid. We will reinstate your preorder if it was cancelled after March 1. In the coming days, our team will send you an email with additional details.

 

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