EV maker Rivian takes bold bet with higher-priced vehicles amid heating competition

SAN FRANCISCO : Rivian Automotive Inc is betting it can keep prices high for its debut lines of electric pickup trucks and sport-utility vehicles even when competition swells, its CEO said, a bold move that may be necessary if the startup wants to make a profit.

The Irvine, California-based startup said it was focusing on rolling out higher-priced, feature-packed models of its R1S sport-utility vehicles and R1T pickup trucks to meet customer demand in the near term, bumping up the average selling price even as it offers some lower-priced variants. "Given the data that we have on customer behavior, the aggregate result we see is a continued upward shift in ASPs," he said."We will offer a lower priced variant, but not necessarily lower prices on the things we're offering today."

"These are flagship products," Scaringe said of Rivian's offering."These are the products that are building our brand. They're not meant to sell hundreds of thousands of units."The premium pricing strategy, however, is still seen as risky. Any immediate impact on Rivian's demand will be difficult to gauge as the company, along with rival Lucid, stopped disclosing current orders in a move that has concerned analysts.

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