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

[Texasrivian]

I finally got the email, but I was a cancellation customer and have requested reinstatement. It looks like I have nothing preordered when I login to my account and they do say a few weeks, so I am not concerned.

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[norivian]

This is great news. I sure wish I was getting my emails from them like you guys. I have to get all my "news" from the forum

Sorry. I started receiving them either from newsletter signup or after my preorder (most likely).

 

[mini2nut]

I finally got the email, but I was a cancellation customer and have requested reinstatement. It looks like I have nothing preordered when I login to my account and they do say a few weeks, so I am not concerned.

Same here, received my reinstatement e-mail from Rivian at 10:03 PST. It's an Explore model which starts production in 2023.

I also have a an early Lightning and Cybertruck reservation. I will most likely go with the R1T due to its size. A full size pickup is slightly too wide for my carport. I can easily squeeze in the R1T.

 

[norivian]

I'm stoked!! Very complicated decision I'm sure. But he made it. Good for you RJ. CEO's don't do stuff like this these days. For RJ it's not all about the money yet. Good for him.

I didn't cancel right away, trying to let my anger subside and not make a rash decision.
Glad I waited a minute.

The only reason i wasnot able to cancel was i was busy driving and exploring in Death Valley where cell signal was non-existent. It wasn’t a priority either when i got to a wifi connection. However, the whole time i have been thinking it would have been nice to drive a Rivian on those trails, and i thought that day may not come. Maybe it still could workout after all. ?

 

[stynes]

Not sure my response was indicative of panic or worry. But agree with you, will take a bit. The reality is that resetting the price to the previously quoted option doesn't really take that much time and shouldn't take any more time than did changing the price.

Eh... maybe. Maybe not. Depends on a lot of stuff...
https://www.rivianforums.com/forum/...ce-letter-on-price-rollbacks.3885/post-108779

 

[gordonrands]

I struggle to praise Ford for basically saying "If you haven't heard anything from us you're not getting a vehicle this year." That's not exactly award winning customer service. However I will commend them for no longer accepting reservations. When reservations open again I'm sure there will be a tweak on pricing considering new orders would be at least 2 years out.

I agree that Rivian communication has been much better than Ford, up to the price increase disaster.

 

[FHM]

There's been no change to estimated delivery windows, so there's nothing to report. Sure, reiteration is nice, but I don't really fault them for not sending out an email blast to say there's no change.

You are a better person than I am to trust their lack of communication. It is clear from news items that Rivian is WAY behind on their production schedule.

See: https://www.forbes.com/sites/alanoh...pply-snags-curbing-ev-output/?sh=2e628e031301

and: https://www.industryweek.com/leader...n-woes-lead-rivian-to-slash-production-target


Both report that Rivian will only be able to produce "25,000 pickups, SUVs and delivery trucks this year"

As you know, they have over 70,000 Pickup and SUV orders and MUST deliver at least 10,000 vans to Amazon. So, do the math...does anyone really believe they are on schedule?

 

[astonius]

You are a better person than I am to trust their lack of communication. It is clear from news items that Rivian is WAY behind on their production schedule.

See: https://www.forbes.com/sites/alanoh...pply-snags-curbing-ev-output/?sh=2e628e031301

and: https://www.industryweek.com/leader...n-woes-lead-rivian-to-slash-production-target


Both report that Rivian will only be able to produce "25,000 pickups, SUVs and delivery trucks this year"

As you know, they have over 70,000 Pickup and SUV orders and MUST deliver at least 10,000 vans to Amazon. So, do the math...does anyone really believe they are on schedule?

First, my post is from 10 days ago, well before the earnings call last week.

Secondly, I never said I take them at their word, only that they have not made any changes to the delivery windows.

 

[Craigins]

You are a better person than I am to trust their lack of communication. It is clear from news items that Rivian is WAY behind on their production schedule.

See: https://www.forbes.com/sites/alanoh...pply-snags-curbing-ev-output/?sh=2e628e031301

and: https://www.industryweek.com/leader...n-woes-lead-rivian-to-slash-production-target


Both report that Rivian will only be able to produce "25,000 pickups, SUVs and delivery trucks this year"

As you know, they have over 70,000 Pickup and SUV orders and MUST deliver at least 10,000 vans to Amazon. So, do the math...does anyone really believe they are on schedule?

I love these posts. So much fake news.

What was their production schedule before, that they are WAY behind on now?

Production schedule before was 10k EDV in 2022 and all preorders by end of 2023. I believe this was around the 50-60k preorder mark.

Some analyst came up with the 50k out of thin air and people just take it as fact.

 

[Zoidz]

As you know, they have over 70,000 Pickup and SUV orders and MUST deliver at least 10,000 vans to Amazon. So, do the math...does anyone really believe they are on schedule?

Where do you find an official statement from Rivian or Amazon using the word must?

Everything official that I read says expected/planned. Big difference.

 

[FHM]

I love these posts. So much fake news.

What was their production schedule before, that they are WAY behind on now?

Production schedule before was 10k EDV in 2022 and all preorders by end of 2023. I believe this was around the 50-60k preorder mark.

Some analyst came up with the 50k out of thin air and people just take it as fact.

Hummm...so you think the preorders were less than 15,000? Because, based on company and press reports, they are projecting 25,000 builds this year minus 10,000 that must be delivered to Amazon. That would leave 15,000 for both Pickups and SUVs to be delivered in 2022. If that is true, it is hard to imagine they will meet projected deliveries. Doubt they meet my April/May delivery...

But that is not the point...it's all about communication. Absent company communication, we're left in the dark and fed by what you are calling "fake news". And saying to trust them brings to mind the saying "...fool me once, shame on you, fool me twice, shame on me...

You might want to read quotes from the company...83,000 customers and "In a shareholder letter, the company said "...we believe we will have sufficient parts and materials to produce 25,000 vehicles across our R1 and RCV platforms in 2022...", including its R1T truck and its electric delivery vans for Amazon. "

https://assets.rivian.com/2md5qhoea...844f1e7/Rivian-Q4-2021-Shareholder-Letter.pdf

https://www.theverge.com/2022/3/10/22971092/rivian-electric-truck-deliveries-earnings-q4-2021

They were expecting 50,000 this year...now 25,000. Do the math...

 

[Craigins]

They were expecting 50,000 this year...now 25,000. Do the math...

Who is "they"?

Rivian said 10k edvs in 2022 and lets go big and say 70k by 2023.

No updates since then until the q4 numbers, which is 25k total in 2022.

50k is not a number rivian has given.

 

[FHM]

Who is "they"?

Rivian said 10k edvs in 2022 and lets go big and say 70k by 2023.

No updates since then until the q4 numbers, which is 25k total in 2022.

50k is not a number rivian has given.

I hope things are cleared up for 2023.

Please read the Company letter (page 17):

"We believe that throughout 2022, the supply chain will be a fundamental limiting factor in our total output for the Normal Factory and that our manufacturing equipment and processes would have the ability to produce enough vehicles to deliver over 50,000 vehicles across our R1 and RCV platforms in 2022 if we were not constrained by our supply chain. Our confidence comes from the demonstrated performance of our processes and equipment which is in line with our expectations. Despite this, due to the supply chain constraints currently visible to us, we believe we will have sufficient parts and materials to produce 25,000 vehicles across our R1 and RCV platforms in 2022."

https://assets.rivian.com/2md5qhoea...844f1e7/Rivian-Q4-2021-Shareholder-Letter.pdf

Just wish I didn't have to read to page 17 of a letter to find the facts. It would be better if this was communicated directly to us reservation holders...

 

[Zoidz]

I hope things are cleared up for 2023.

Please read the Company letter (page 17):

"We believe that throughout 2022, the supply chain will be a fundamental limiting factor in our total output for the Normal Factory and that our manufacturing equipment and processes would have the ability to produce enough vehicles to deliver over 50,000 vehicles across our R1 and RCV platforms in 2022 if we were not constrained by our supply chain. Our confidence comes from the demonstrated performance of our processes and equipment which is in line with our expectations. Despite this, due to the supply chain constraints currently visible to us, we believe we will have sufficient parts and materials to produce 25,000 vehicles across our R1 and RCV platforms in 2022."

https://assets.rivian.com/2md5qhoea...844f1e7/Rivian-Q4-2021-Shareholder-Letter.pdf

Rivian was not expecting to deliver 50K vehicles this year. Stating "ability to deliver" and "expect to deliver" are completely different things.

"ability to produce enough vehicles to deliver over 50,000 vehicles across our R1 and RCV platforms in 2022"

"have sufficient parts and materials to produce 25,000 vehicles"

Ability is plausible production line capacity. I have a customer that has the stated ability to produce 10 million bottled beverages a month. They've never done it, never targeted that, but might do it some future year during the summer. They produce 7 million a month, with seasonal adjustments.

 

[FHM]

Rivian was not expecting to deliver 50K vehicles this year. Stating "ability to deliver" and "expect to deliver" are completely different things.

"ability to produce enough vehicles to deliver over 50,000 vehicles across our R1 and RCV platforms in 2022"

"have sufficient parts and materials to produce 25,000 vehicles"

Ability is plausible production line capacity. I have a customer that has the stated ability to produce 10 million bottled beverages a month. They've never done it, never targeted that, but might do it some future year during the summer. They produce 7 million a month, with seasonal adjustments.

So are you saying they expected to deliver more than they could?

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