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

Julian WestTuesday, Feb 11, 2025 2:53 am ET
4min read


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.

RIVN Interval Closing Price
Name
Date
Interval Closing Price(USD)
Rivian AutomotiveRIVN
20220211-20250210
12.99


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.
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Jera_Value
02/11
$RIVN short is the way to go
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Artistic_Studio2784
02/11
$TSLA for real? You're buying again? 🥵😂
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NeighborhoodOld7075
02/11
$RIVN alright alright your fking predictions Enough enough all these years
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Overlord1317
02/11
@NeighborhoodOld7075 What’s your prediction target?
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WickedSensitiveCrew
02/11
$RIVN Black Rock has around $1B invested in Rivian. Shorts should be cautious.
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ev00rg
02/11
Rivian's move feels like a double-edged sword. Higher prices might boost margins but could also spur more cancellations.
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_Ukey_
02/11
Rivian's move: quality over quantity, maybe?
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fluffnstuff1
02/11
Not cool, Rivian. Almost $100k? 😅
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DanielBeuthner
02/11
I'm holding $RIVN long-term, but this price hike makes me rethink my strategy. Need to see how they adapt to market pressure. 🤔
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Argothaught
02/11
Tesla's discounts are a game-changer. Rivian's price increase might push customers to more affordable options. Rivian needs a solid response to maintain market share.
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smooth_and_rough
02/11
Affordability edge slipping for Rivian, tough market
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PlatHobbits7
02/11
Rivian's move feels like a double-edged sword. Higher prices might hurt sales, but they could also preserve brand image. Tough call in this competitive landscape.
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JC-YNWA
02/11
Holding $RIVN long, betting on future growth.
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Sorry-Palpitation-70
02/11
Tesla discounts make Rivian pricier by choice.
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khasan14
02/11
Exchange rates bite, but opportunities bite harder.
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Certain-Dragonfly-22
02/11
@khasan14 What's your take on Rivian's strategy?
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