There may be more to Rivian's price hike than materials costs | Automotive News (archive.ph)Last fall the company abruptly terminated Laura Schwab, who was lured away from Aston Martin to head Rivian's sales and marketing.
Schwab, in a lawsuit against the company, said one reason she was fired is because she questioned Rivian's pricing. The R1T electric truck's starting sticker price of $67,500 was too low, Schwab said in her suit. Rivian was on the cusp of launching its IPO and had already booked thousands of orders for its pickup.
Her suit says: "First, it was clear that the vehicles were underpriced, and each sale would result in a loss for the company. Ms. Schwab ultimately contacted Dennis Lucey, Rivian's Finance Director, and worked with him to develop projections showing how much of a loss the company would incur if Rivian did not raise prices. Ms. Schwab raised this issue with several executives, including Mr. Behl, Stuart Dixon (Director of Product Management), and Andy Zicheck (Principal Product Manager).
"Mr. Behl brushed her off. Eventually, Mr. Hunt raised the issue with Mr. Behl, at which point Mr. Behl agreed that they would need to raise the vehicle prices after the IPO."