? RJ's Letter -- Making it Right -- REVERSING THE PRICE CHANGE FOR PREORDER HOLDERS

[e4gaa1104]

Thank you RJ. Saved me a trip to the Volvo dealer to look at an XC90 Recharge Extended Range.
I still have some worries re Rivian’s long term as presumably they need money and the delivery timescales are not quick enough to deliver that income.

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[intimidator]

CHECK YOUR EMAILSSSS!!!!!!

I got no email as of 12 noon EST

 

[intimidator]

So is all the pricing going back? Ie Adventure with the powered tonneau, camp kitchen, etc?

Has anyone seen their pricing go back to the way it was? I messed around with the config a few times to see the different ways I can price the truck but ended up leaving it as is at 101k (was 87k). Just wondering how and when that’s gonna happen.

My configuration price has NOT reverted back.
Instead of refreshing every 15 minutes, I am going to wait until tonight before checking again.

 

[Friscorays]

One cool thing. I've been talking up the R1T to a friend of mine that actually does live an adventurous lifestyle (marathons, triathlons, hiking the Appalachian Trail ((for real)), etc.). I was just texting her about the drama and letting her know that she was now looking at a large price increase. She told me she and her husband actually followed my advice and put down a deposit back in January; something she hadn't told me before. I am so happy for them!

 

[TacoMcDonut]

Anyone have any insight from CS on whether we can reinstate a preorder and then change models (R1T -> R1S) like we used to be able to?

Just as an update on this, CS stated we can change the model again, once all info is updated:

 

[ESTRUCK]

Such a rollercoaster!

YES INDEED !!!

 

[koersontap]

I love your constantly evolving signature.

 

[ESTRUCK]

Such a rollercoaster!

 

[dlfoley]

Hello Everyone, Earlier this week, we announced pricing increases that broke the trust we have worked to build with you. Since originally setting our pricing structure, and most especially in recent months, a lot has changed. The costs of the components and materials that go into building our vehicles have risen considerably. Everything from semiconductors to sheet metal to seats has become more expensive and with this we have seen average new vehicle pricing across the U.S. rise more than 30% since 2018. Given our build lead up times, we need to plan production costs not only for today, but also for the future. As we worked to update pricing to reflect these cost increases, we wrongly decided to make these changes apply to all future deliveries, including pre-existing configured preorders. We failed to appreciate how you viewed your configuration as price locked, and we wrongly assumed the announced Dual-Motor and Standard battery pack would provide configurations that would deliver price points similar to your original configuration. While this was the logic, it was wrong and we broke your trust in Rivian. We also didn’t manage communications well. We didn’t give you enough insight into what was driving these decisions. The most important aspect of what we are building is our relationship with all of you. As we demonstrated earlier this week, trust is hard to build and easy to break. In speaking with many of you over the last two days, I fully realize and acknowledge how upset many of you felt. I have made a lot of mistakes since starting Rivian more than 12 years ago, but this one has been the most painful. I am truly sorry and committed to rebuilding your trust. One of the things we talk about a lot internally is that we will make mistakes – it’s part of building something complex. The key is to learn from them and address them when they are made. It is how we grow. We made a mistake in how we approached our pricing changes, and what is important now is that we fix it. For anyone with a Rivian preorder as of the March 1 pricing announcement, your original configured price will be honored. If you canceled your preorder on or after March 1 and would like to reinstate it, we will restore your original configuration, pricing and delivery timing. Our team will be sending an email in the next few days with more details. Regarding our updated pricing for future preorders, the introduction of our Dual-Motor configuration and Standard battery pack has been designed to enable us to maintain lower starting prices while adjusting the pricing of the Quad-Motor and larger battery packs to reflect rising costs. Building a durable business is core to the continued impact we can deliver as a company. We are focused on building a brand and products that will continue to scale to different vehicle sizes, use cases, price points and markets – this growth will only be possible with your support and continued feedback. Thank you for the personal notes and discussions I had with so many of you. Your feedback makes us better. RJ​

I was prepared to cancel my order having felt quite deceived… but am reconsidering. Thank You RJ/Rivian for your show of integrity.

DFoley

 

[Batman]

When are they updating our accounts to show reverse change? I keep refreshing, its not there

 

[ESTRUCK]

Such a rollercoaster!

Such a rollercoaster!

 

[jasonmkd]

Can I get bumped up on the priority list for *not* canceling my pre-order??

 

[Whmorken]

What I learned from the “great debacle”: Rivian is experiencing the opposite of “fair winds and following seas”. Reading between the lines of RJ’s letter, he may see a recession dead ahead, and given the particulars he mentions, Rivian production faces daunting challenges. RJ is asking for customer trust and purchases to survive start-up angst and delays amid a potential economic hurricane. That is why in nautical terms Rivian “reversed course” to pick up those who jumped ship. We early adopters, and he needs all of us, now sail on with our life jackets in hand.

These are not ordinary times and we know the R1 is a revolutionary vehicle!

 

[dixosw]

Rivian seems to follow the Tesla playbook pretty closely, as far as I can tell. They should have done so for the price changes also. Tesla makes smaller, more frequent price changes but honor the price at time of reservation. (Ok, perhaps not the OG roadster). Sometimes there are several prices changes per month. It softens the blow and people get a locked in price. That's fair.
I canceled and sold my shares. I'll probably reinstate even though I said on another thread that I wouldn't. See, Rivian aren't the only ones that can change their mind.

 

[SANZC02]

I’m not so sure. There’s a boat load of employee stock that vests quarterly and is eligible for sale starting in May. Many employees (90% of their corporate force) that joined in the last year were fed a story about how their stock options would be worth 3-4x its initial value ($75-100/share). Most of them live along the CA coast and need to sell significant amounts of stock to live there. Low stock prices will start to drive away talent if it doesn’t appreciate or hold its value.

If they need to sale quarterly stock to make ends meet they are in trouble anyway.

Employ stock plans can be huge investments for people if they have the right company and patients to allow it to grow. It helped me to retire comfortably, they just need to look a little past the horizon…

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