Rivian Automotive on Monday announced the launch of leasing for its R1T electric pickup truck for customers in select U.S. states.

The option, which has been made available in states including California, New York, Florida and Texas, comes days ahead of the launch of Tesla's Cybertruck which competes with the R1T.

The $7,500 federal tax credit for electric vehicle purchases also applies to customers who prefer to lease, boosting demand.

Rivian, earlier this month, raised its production forecast for the full year by 2,000 vehicles to 54,000 units on the back of sustained demand.

High interest rates have affected demand for EVs with Tesla sparking a price war earlier this year to improve sales and grab a larger market share.

(Reporting by Harshita Mary Varghese; Editing by Shailesh Kuber)