SAN FRANCISCO, May 10 (Reuters) – Rivian Automotive Inc (RIVN.O) 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. 

And one some see as risky, since Rivian products will soon face more rivals at a time when market leader Tesla Inc (TSLA.O) is slashing prices to spur demand in the face of souring consumer sentiment, and traditional automakers are tightening competition with lower-priced electric vehicle (EV) models. 

Rivian calmed investor nerves this week by sticking to its 2023 production target and reporting better-than-expected quarterly revenue in a sharp contrast to peers Lucid Group (LCID.O), Fisker Inc (FSR.N) and Nikola Corp (NKLA.O). 

The Irvine, California-based startup said it was focusing on rolling out higher-priced, feature-packed models of its R1S sport-utility vehicles (SUVs) and R1T pickup trucks to meet customer demand in the near term, bumping up the average selling price (ASP) even as it offers some lower-priced variants. 

“We see demand from customers for what we’re building” Rivian CEO R.J. Scaringe told Reuters on Wednesday. 

Rivian is confident of maintaining prices in the face of growing competition, he said, adding that extra-large batteries, better performance and premium features would distinguish the company from rivals. 

“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.” 

Rivian does not disclose its ASP, but the R1T starts at $73,000 while Ford Motor Co’s (F.N) F150 Lightning electric truck is priced from about $60,000. 

The R1S starts at $78,000, compared to just over $47,000 for Tesla’s Model Y and about $97,000 for the more premium Model X. 

“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.”