R1T & R1S Updated Pricing, Configuration, Specs. Dual Motor Now Available

[the long way downunder]

This seemed pretty inevitable. If you knew anything about Rivian pre 2021 you knew they were at best walking a thin line between being the next Tesla and being the next Fisker. This was fairly predictable given the basic economics for EVs and the raw cost calculations that you could have easily done on the R1T/S. The thing has a huge battery pack that’s around 30% larger than a Model S/X and priced 20% less?? ADD ON up to 50%+ raw inputs inflation etc and you have what, only a 15% price jump?

They obviously could not have anticipated raw material costs skyrocketing like they have in 2020-2022 and this seems like a difficult decision that was probably in the works for many months. I’ve been saying all along they had negative margins with their supposed pricing and this was just proof. So if they’re acknowledging reality then they’re not stupid and are doing their best to turn things around. If they can repair their brand and scale then they might survive.

For similar money (ie $75k + $10k ADM (if you’re lucky) you can buy a Bronco Raptor that is slower and uses gas, for more money you can get a Defender V8 that is also slower and uses gas, etc. etc. It’s definitely a bait and switch so I get the outrage but at the end of the day it’s still pretty cheap compared to the competition.

$85k for a quad motor spec gets you 0-60 times in the neighborhood of $150k+ supercars and the off road capability of a Defender? There are people who pay $275k+ for G wagens and $150k for Porsche Taycan crossovers. If you’re a launch edition reservation holder you should just sell your reservation rather than cancel it because you probably still have $15k in arbitrage. The first Bronco sold for almost $200k and First Edition Broncos are being purchased by dealers at auction for $80k+ aka $15k over MSRP.

There’s a lot of overreacting here. Some people here don’t understand money at all and basically just threw away a bunch of it by cancelling their very early reservation (because they are (justifiably) pissed off). Even if you couldn’t afford the Rivian at the new price maybe you could still make enough flipping it to give yourself $10k-$15k off another vehicle of your choice. It’s still a winning proposition if you understood the basic numbers…

Spot on. This is the first price increase as Rivian gauges the market demand and adjusts its price points in line with competitors (Tesla has made larger percentage increases in the 6-12 months.)
Rivian is a premium priced vehicle, not competing with GM or Ford, more like the luxury lifestyle statement of a $200K Porsche or G-wagon.
A pre-order build for '22 or '23 is quite possibly a great arb opportunity and at least some fun.

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[AllInev]

World's #3 carmaker by value can't afford to offer leasing, oh boy. This is not "MOsT cOmpAnIes". Stop with the excuses. I could care less anyway my order is CANCELED. Peace.

I'm sure they meant they could NOT care less and neither could I.

 

[Redline]

My R1S configuration was updated to 7-seat which is something I neither need nor want. I don't understand how that controls production costs. Other than that.. my configuration remained the same and my new price went from $74k to $91k -- a 23% price increase!!!

I'd be open to the new dual-motor and standard battery options to lower the price, but adding yet another year until those configurations begin shipping in 2024 is a deal breaker. And what's to stop Rivian from dramatically increasing the price again during that 2+ year period.

I contacted customer service and the rep said they were completely blindsided by the price changes too. They were informed to promote more control on configurations (with dual-motor and standard battery options) to angry customers. Rep even said.. I would be very upset too.

Also, as a shareholder, the impact of these pricing changes is going to have a big hit to my investment in this company. After hours trading is already down and I expect Rivian to take a major hit in share price over the coming days as this news circulates and many pre-orders are cancelled.

The new pricing probably pushes me out. There are plenty of other new offerings coming available or next year from well established luxury brands at lower price points. Someone needs to fire the product managers and pricing staff that came up with this imbecilic scheme.

It’s currently down $.41 cents AHs.

I don’t think people understand how Wall St works. Remove your emotion from this.

 

[the long way downunder]

World's #3 carmaker by value can't afford to offer leasing, oh boy. This is not "MOsT cOmpAnIes". Stop with the excuses. I could care less anyway my order is CANCELED. Peace.

Lease product vendors need actuarial data to price a lease. It's the same if you buy a Porsche that hasn't been produced before … lease companies can slip the numbers (in their favor) but for some vehicles, they just won't roll the dice.

 

[ajbrutman]

I got the first call from my Guide today. This email came in from rivian a few minutes ago...

You may have heard that Rivian‘s vehicle and option pricing have increased as a result of price inflation of supplier components and raw materials across the world. Since you are in the final steps of completing your transaction, your Rivian preorder will not be affected by these adjustments.

We’re grateful to you for being an early supporter of Rivian and look forward to getting your new R1T to you soon. If you have any questions, feel free to reach out to your Guide at any time.

I had the same series of events today. It was a roller coaster of emotions. I'm glad I am in the position I am in, but I am very disappointed in Rivian's sudden price hike. Although I am unaffected, I would understand a small few thousand dollar raise, but roughly 15k to keep your config is extremely disappointing.

 

[pc500]

Check Tesla price increases – similar percentage increases. The US economy, supply side economics, logistics … this is the first of what I expect to be price increases keeping pace with Tesla and reflecting a production-constrained business with demand far exceeding production capacity. I doubt it will resolve in 2022 or 2023. Rivian is a premium priced niche luxury lifestyle consumer discretionary purchase – not competing with a Lightning or Silverado any time soon.

Yes, but Tesla honored preorder deposits at existing prices.

 

[the long way downunder]

? (except I never got the cake).

That's a funny, sick, sad photo and completely irrelevant to the price increases.
p.s. If however this is a product Rivian will be selling, I expect market demand will be high.

 

[drcarric2650]

Check Tesla price increases – similar percentage increases. The US economy, supply side economics, logistics … this is the first of what I expect to be price increases keeping pace with Tesla and reflecting a production-constrained business with demand far exceeding production capacity. I doubt it will resolve in 2022 or 2023. Rivian is a premium priced niche luxury lifestyle consumer discretionary purchase – not competing with a Lightning or Silverado any time soon.

There is one caveat, Tesla generally honors the price that you ordered at, not sure if they will with the CyberTruck, since it isn't out yet. Whatever, I will wait awhile, to let myself cool off, to decide if it is worth the price when it's my turn in line. I have both the R1S and R1T on order, so I think it will be a year or two before I'm up, so who knows what will happen by then.

Don

 

[E.S.]

p.s. If however this is a product Rivian will be selling, I expect market demand will be high.

Great, now Rivian Cake is pop up on the Rivian Gear Shop (hahaha)

 

[the long way downunder]

There is one caveat, Tesla generally honors the price that you ordered at, not sure if they will with the CyberTruck, since it isn't out yet. Whatever, I will wait awhile, to let myself cool off, to decide if it is worth the price when it's my turn in line. I have both the R1S and R1T on order, so I think it will be a year or two before I'm up, so who knows what will happen by then.

Don

Sort of. Tesla is usually building orders in 30 days (sooner for S and X) but if they're increasing prices every 30-90 days, there's no need to deal with a 3+ year disparity. Just the supply side increases in 2020 should have resulted in Rivian increasing prices, especially for new pre-orders, especially when the DSP was an enticement to place an order (to get the 175 shares.)

 

[AllInev]

Spot on. This is the first price increase as Rivian gauges the market demand and adjusts its price points in line with competitors (Tesla has made larger percentage increases in the 6-12 months.)
Rivian is a premium priced vehicle, not competing with GM or Ford, more like the luxury lifestyle statement of a $200K Porsche or G-wagon.
A pre-order build for '22 or '23 is quite possibly a great arb opportunity and at least some fun.

I call BS. Rivian played most of us who pre-ordered. It was a sleazy (borderline illegal) marketing move to increase reservations before the IPO. They knew the price was low years back and stringed us along. Here's an excerpt from a recent Reuter's article:

"Rivian’s former head of sales and marketing, Laura Schwab, said in a lawsuit against the company in November over alleged “gender discrimination and retaliation” that Rivian has acknowledged a need to raise the vehicle prices “after the IPO”.

 

[ahsfca]

Exactly what I wanted to hear.
New RRS is supposed to have the hybrid BMW engine from the X5/7-Series (used in RR as well) so that would be idea for me. Been terrified of LR products due to reliability issues so I’m hoping electronics/mechanical with the BMW partnership improves that.

Been owning BMWs since 2005 and can attest to zero major issues since then. LR terrifies me.

The Freelander from 25 years ago ruined Land Rover's reputation, along with some people buying 10 year old models and getting some shock at parts replacement and service costs. And it's an internet hobby to pile on the jokes but the Discovery, Sport and full size Range Rover are quite reliable with highly satisfied owners (I've been on the forums for 15 years). In the most recent JD power initial quality survey they are ranked higher than Audi, Volkswagen, Volvo and tied with Acura. I had an old Sport for 7 years that was as reliable as my previous 4 Audis. My current SVR is 3.5 years old and the only thing that was flakey was the infotainment which they fixed with OTA updates (yes it's not just Tesla and Rivian doing those). Not a single mechanical issue. And the quality of the paint and interior is top notch.

Yes the 4.4L V8 will be in the new Sport but they have promised a BEV version and I heard 2024 as the Sport is the best selling vehicle for them. Still, the JLR's iPace didn't have a good motor or battery so not holding my breath. But the electric motor in the new BMW iX M (or whatever the name is) is very good and it's really fast. Maybe they can source it from BMW?

I have the 5.0L V8 which does 0-60 in 4.1 seconds and it's just fine for me. But really would like to go EV if all the boxes are checked. The R1S was the closest so far.

 

[sacramentoelectric]

Check Tesla price increases – similar percentage increases. The US economy, supply side economics, logistics … this is the first of what I expect to be price increases keeping pace with Tesla and reflecting a production-constrained business with demand far exceeding production capacity. I doubt it will resolve in 2022 or 2023. Rivian is a premium priced niche luxury lifestyle consumer discretionary purchase – not competing with a Lightning or Silverado any time soon.

Do you live somewhere where people don't buy fancy trucks? The Lighting Platinum and Silverado EV RST are absolutely getting cross shopped against the R1T.

 

[epradox]

Did people really not see this coming? The model x long range went from $85k this time last year to $105k now... Rivian is just adjusting with the market... Hold onto your reservations and just decide to flip it or cancel it near delivery time. Its still a good value right now imo so with its capability... I could see it going even higher if the market shifts that way... Who knows, things seem kinda volatile right now.

 

[Tschu12]

Rivian had positioned themselves perfectly for a ripe market that my wife and I were a part of. We are young, adventurous professionals who had just saved up enough to stretch for a vehicle like this that fit our beliefs, even though it was more than we ever thought we would pay this early. Had this price increase been in the thousands of dollars, we would probably have been able to handle it due to an understanding of the tough market conditions. However, when you decrease specs and increase the price for the vehicle by 20k after what seemed to be a solid promise of a price, you have not only pushed us out of the market financially, but left a horrible taste in our mouth that will have us looking elsewhere in the future. This is a slap in the face to the customers like us who went out on a limb to preorder your vehicle and put themselves on the line to be your earliest promoters. Rivian, you are the most well funded start up in history, use some of that to start off right instead of completely alienating your earliest customer base. This is not looking to the future... this move is cutting you guys off at knees. I'm sorry I got so excited for so long to own one of these.

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