Electric car manufacturing startup Rivian has decided to roll back its initially planned price increase for pre-ordered vehicles following a massive backlash from its customers. The company's CEO, RJ Scaringe, published a post apologizing to customers Thursday.

In his post, Scaringe admitted that the decision to hike up prices was one of his biggest mistakes since he started the company more than 12 years ago. He told customers that he realized how upset everyone must have felt when he first broke the news of the price hike.

Rivian announced its price hike earlier in the week. The company said the price for its pre-order electric R15 pickup truck and its R1S SUV would be increased for all customers. The base R15 was increased from a pre-order price of $67,500 to $79,500, while the R1S would increase from $70,000 to $84,500.

During its initial announcement, the company had cited increasing costs, inflation, and general supply shortage as the reason behind its decision. Rivian's chief growth officer, Jiten Behl, said during that time that the rise in "cost and complexity" has forced the company to reconsider its pricing, which was initially set in 2018.

The price increase affected all customers, including those that had already placed a refundable $1,000 deposit for their reservations. Many of Rivian's customers immediately canceled their pre-orders following the announcement. Some customers said their total price jumped by as much as $20,000 because of the price hike.

In his letter Thursday, Scaringe claimed that the company failed to communicate effectively about its decision to hike up prices. He added that the company considers building good relationships with its customers as one of its most important goals. For everyone who pre-ordered a car before the March 1 pricing announcement, Rivian will honor the originally specified price. Customers who canceled their pre-order following the price increase would be allowed to re-order at the original price and delivery date as part of the rollback.

Rivian has had its ups and downs since its November IPO, which garnered around $12 billion, the biggest amount raised since Facebook's IPO in 2012. In December, Rivian's R1T was crowned MotorTrend Truck of the Year.

Rivian's stock was once worth more than Volkswagen, Ford, and General Motors in 2021, but it has dropped 50% this year. Last year, the manufacturer announced that it expected to fall short of its 1,200-vehicle output goal. It also intends to construct a second production plant outside of Atlanta, Georgia, this year. The facility is expected to be able to produce up to 400,000 cars per year.