Rivian discontinues lower-price option for R1T pickup trucks

Electric-vehicle maker Rivian Automotive Inc. is reportedly discontinuing its lowest-priced option for its R 1 T pickup truck, which has raised the entry price by $5,500.

According to a post on a Rivian owners forum, the company tells customers who pre-ordered the $67,500 Explore package that they need to upgrade to the $73,000 Adventure package or cancel their pre-order.

The Verge first reported the move on Thursday, and Rivian RIVN has confirmed it with both The Verge and Bloomberg News. A MarketWatch email to Rivian asking for confirmation was not immediately returned late Thursday. According to a letter posted on the forum, Rivian told customers that the lower-priced package didn't generate enough interest. The Explore Package was designed as our entry option and it was our expectation that a large number of customers would choose it. The letter said that only a small percentage of customers have chosen this configuration, with the vast majority choosing the Adventure trim. Customers who cancels by Sept. 16 will get a full refund on their pre-order deposit. The lower-priced package for Rivian's R 1 S SUV has apparently been eliminated, a tweet Thursday showed Rivian s configuration website with only one option available, starting at $75,500, and the Explore version reading discontinued. In March, Rivian announced a roughly 20% price hike to its R 1 T pickup and R 1 S SUV, but quickly reversed course after backlash from customers, and said it would honor prices on existing pre-orders. Rivian reported a narrower than expected quarterly loss earlier this month, but it maintained its goal of producing 25,000 vehicles by the end of the year, after making 4,400 in the second quarter. Rivian shares have gained 21% year to date, compared to the S&P 500 s SPX, a 10% decline.