Rivian To Hike R1T, R1S Prices In Canada By Nearly 10% From Feb 25 Amid Exchange Rate Shift

Rivian Automotive Inc. (RIVN) has announced a significant price increase for its R1T electric truck and R1S electric SUV in Canada, effective from February 25, 2023. The price hike, which amounts to nearly 10% for both models, is attributed to a shift in the exchange rate between the US and Canadian dollars. This change has led to an increase in production and supply chain costs for Rivian, which is headquartered in the United States.

The price increase comes at a time when Rivian is facing increasing competition in the electric vehicle (EV) market, particularly from Tesla Inc. (TSLA), which has been offering deep discounts on its vehicles. Rivian's R1T and R1S models are positioned at the higher end of the market, with the R1T starting at C$101,900 and the R1S at C$109,900 in Canada. The price hike will further increase their premium positioning, potentially making them less accessible to price-sensitive customers.

Rivian's decision to pass on the increased production costs to consumers has been met with criticism from customers and industry observers. Some customers have expressed their disappointment on social media, with one user stating, "Not cool on Rivian... I think I have to be out of the adventure now. Cannot justify an almost $100k truck with current state of deliveries and fit-and-finish." Another user commented, "Rivian's negative gross margin will be staggering... It is near impossible for other firms to make affordable electric pickup trucks."

Rivian's stock price has been volatile in recent months, reflecting the company's challenges in the EV market. As of February 11, 2023, RIVN shares were trading at $13.03, down from a 52-week high of $17.69. The company is expected to report its fourth-quarter results on February 20, 2023, which could provide more insight into its financial performance and strategic direction.



Rivian's price increase comes at a time when the company is facing increasing competition in the EV market, particularly from Tesla Inc. (TSLA), which has been offering deep discounts on its vehicles. Rivian's R1T and R1S models are positioned at the higher end of the market, with the R1T starting at C$101,900 and the R1S at C$109,900 in Canada. The price hike will further increase their premium positioning, potentially making them less accessible to price-sensitive customers.

Rivian's decision to pass on the increased production costs to consumers has been met with criticism from customers and industry observers. Some customers have expressed their disappointment on social media, with one user stating, "Not cool on Rivian... I think I have to be out of the adventure now. Cannot justify an almost $100k truck with current state of deliveries and fit-and-finish." Another user commented, "Rivian's negative gross margin will be staggering... It is near impossible for other firms to make affordable electric pickup trucks."

Rivian's stock price has been volatile in recent months, reflecting the company's challenges in the EV market. As of February 11, 2023, RIVN shares were trading at $13.03, down from a 52-week high of $17.69. The company is expected to report its fourth-quarter results on February 20, 2023, which could provide more insight into its financial performance and strategic direction.



In conclusion, Rivian's price increase for its R1T and R1S models in Canada is a strategic move to mitigate the impact of exchange rate shifts on its production and supply chain costs. However, the price hike may also make Rivian's vehicles less competitive in the Canadian market, particularly in comparison to more affordable alternatives from competitors like Tesla. As Rivian continues to navigate the challenges of the EV market, investors will be watching closely to see how the company's strategic decisions impact its financial performance and market share.