Rivian cancels its lowest-priced electric truck

Yahoo Finance's Julie Hyman and Brian Sozzi discuss Rivian dropping its low-cost electric truck option.

Video Transcript

JULIE HYMAN: It's time for "Cut for Time," two stories, one minute each. And we start with this-- Rivian is under fire from some for the cancellation of its lowest price electric truck option, essentially raising the price of its entry-level vehicle. That model originally retailed for $67,500.

So effectively, there was a less expensive trim option on this particular Rivian. They're getting rid of that because they said there wasn't enough demand to make it worth it. But effectively, this now raises the floor for a new Rivian to $70,000. That's some expensive trim, if the trim is the only difference between these two models. But it just illustrates, I guess, what's going on in Rivian, which you've highlighted.

BRIAN SOZZI: Yeah, look, now you have Rivian, I think, sending a clear signal to the market, we're going to focus on wealthy car consumers because those folks not now that may have reached or been able to buy that Rivian at that entry price point, they're going to go pick up a Ford F-150 Lightning if they can find it, which is priced, I believe, even with the recent price increase, under the pricing for Rivian. But not a good look here for a company that needs every single sale it can get.