Rivian raises EV prices by 20%, inviting customer ire, taunt from Musk

FILE PHOTO: A Rivian R1T pickup is parked outside the Nasdaq Market site in Times Square in New York City, U.S., November 10, 2021. REUTERS/Brendan McDermid

SAN FRANCISCO (Reuters) -U.S. electric vehicle startup Rivian Automotive Inc said on Tuesday it has increased selling prices of its vehicles by about 20% due to inflationary pressures and higher component costs, angering some customers.

The price increase also invited caustic comments from Elon Musk, chief executive of rival Tesla Inc, who tweeted that Rivian's "negative gross margin will be staggering" and it is "near impossible" for other firms to make affordable electric pickup trucks.