Rivian Automotive Inc (NASDAQ:RIVN) is trading lower Wednesday after the company on Tuesday announced it's raising the prices of its vehicles by about 20%.
According to a Reuters report, the price increases come as a result of inflationary pressures and higher component costs. The Amazon.com Inc (NASDAQ:AMZN)-backed EV startup increased the starting price of its R1T electric pickup trucks by about 17% and its R1S electric SUVs by about 20%.
"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, chief growth officer of Rivian, said in a statement to Reuters.
Rivian is one of many EV companies that made public debuts last year. In its most recent earnings report, Rivian said it lost $2.23 billion during the first nine months of 2021. The company also failed to reach production targets last year.
Rivian designs, develops and manufactures category-defining electric vehicles and accessories.
Related Link: Elon Musk Gains At Tesla Rival Rivian As Latter Hikes Prices: 'Their Negative Gross Margin Will Be Staggering'
- Wells Fargo analyst Colin Langan maintained Rivian with an Equal-Weight rating and lowered the price target from $110 to $70.
- RBC Capital analyst Joseph Spak maintained Rivian with a Outperform rating and lowered the price target from $165 to $116.
RIVN Price Action: Rivian has traded as low as $50 and as high as $179.46 since it went public last year.
The stock was down 13.1% at $53.83 at time of publication.
Photo: courtesy of Rivian.
