Explore Package R1T and R1S No Longer Available

[atebit]

Creative way to recoup cash from pre-March pre-orders, while reducing their production complexity.

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[R1Sky Business]

Hilarious.

Unless you're a Max Pack reservation holder....

 

[Animalhouse]

I agree about the max pax as I was going with it but changed my mind cause I had not heard a “peep” about in months. Also just reconfigured since since the explorer was off the table…….(no comment).
I did almost laugh at the email that said if I changed my config to the adventure they would send an email out about updated delivery (not holding my breath).

 

[LevelHeaded]

Quad looks to have been moved from $6k to $8k as well?

 

[idea man]

I agree about the max pax as I was going with it but changed my mind cause I had not heard a “peep” about in months. Also just reconfigured since since the explorer was off the table…….(no comment).
I did almost laugh at the email that said if I changed my config to the adventure they would send an email out about updated delivery (not holding my breath).

It sounds a little like they are having a hard time getting people to plop down money and actually take delivery and they are worried about hitting their production goals maybe?

 

[Singletracker]

Got the email. Had to upgrade to the Adventure pkg even though there is little in it that appeals to me, at least for the $$$. I had to drop a few add ons and change my color preference to white, just to keep the price below $80K. Adding any additional item or a color change will cost me the price of that item + $7500 (tax credit) ? I suppose, if I choose, I could purchase things like crossbars, etc. separately from the vehicle purchase, but who knows when I would ever get them. I now have very, very little wiggle room, if there is another price hike.

 

[PastyPilgrim]

I expected they'd do this since there didn't seem to be any effort to figure out what the explore package would look like or include/not include (i.e. no prototypes, etc.). They might do the same to the manual tonneau too (especially if there's truth to talk of a redesign and new materials for it this fall), and maybe even to the dual-motor (I don't doubt that they're making a dual-motor setup, but they may relegate that to the R2 line instead of complicating the R1 line; with no more budget R1 trim it makes sense that they'd just have one premium line and one budget line to start with).

And with all the other changes they're making (OC, floor mats, kitchen, etc.), unless you're just along for the ride and don't really care when you get your truck or what exactly it looks like/includes, it really makes sense to only configure the things that Rivian is actually making right now. Nothing else is set in stone, especially if there's no prototypes and no hint of production whatsoever.

 

[DJG]

I expected they'd do this since there didn't seem to be any effort to figure out what the explore package would look like or include/not include (i.e. no prototypes, etc.). They might do the same to the manual tonneau too (especially if there's truth to talk of a redesign and new materials for it this fall), and maybe even to the dual-motor (I don't doubt that they're making a dual-motor setup, but they may relegate that to the R2 line instead of complicating the R1 line; with no more budget R1 trim it makes sense that they'd just have one premium line and one budget line to start with).

And with all the other changes they're making (OC, floor mats, kitchen, etc.), unless you're just along for the ride and don't really care when you get your truck or what exactly it looks like/includes, it really makes sense to only configure the things that Rivian is actually making right now. Nothing else is set in stone, especially if there's no prototypes and no hint of production whatsoever.

Max Pack folks sweating bullets as they should be....

 

[DJG]

Got the email. Had to upgrade to the Adventure pkg even though there is little in it that appeals to me, at least for the $$$. I had to drop a few add ons and change my color preference to white, just to keep the price below $80K. Adding any additional item or a color change will cost me the price of that item + $7500 (tax credit) ? I suppose, if I choose, I could purchase things like crossbars, etc. separately from the vehicle purchase, but who knows when I would ever get them. I now have very, very little wiggle room, if there is another price hike.

Isn't that what the agreement last week was for, so you didn't have to worry about the price for the tax credit??

 

[DJG]

It sounds a little like they are having a hard time getting people to plop down money and actually take delivery and they are worried about hitting their production goals maybe?

That's an interesting take, what's the basis for that??? Seems like culling the herd (particularly the low end of the price spectrum) wouldn't be the smart move if that were true. All signs point to demand continuing to outpace supply, as evidenced by the fact that their net orders are growing, meaning they are coming in faster than they are going out.

 

[DJG]

This is actually a good idea. If they had a low take rate of the explore package, and couldn’t get the Ash wood in large quantities, it makes sense to simplify things for now to keep production running. It doesn’t look like they’re outright canceling the lighter wood it’s just going to be delayed significantly.

I mean, it's cancelled with no indication of returning. I suppose they'll see what data tells them with these reconfigures, but my guess is they don't NEED to figure out the light wood.

 

[Singletracker]

Isn't that what the agreement last week was for, so you didn't have to worry about the price for the tax credit??

Oh, yeah. What was I thinking? Guess I had a brain fart ? Now, I can go back to just being pissed that I’m being forced into the Adventure pkg., that includes a bunch of stuff I don’t need.

 

[kylealden]

Gotta say I'm completely unsurprised by this. Remember when the Model 3 was announced with a "Premium" interior option (glass roof, vegan leather seats, premium sound, etc.) and the "future" basic option with cloth seats, metal roof, etc... which never materialized?

Tesla/Rivian have:

1. No dealer network, so no notion of "dealer-installed" options (a huge part of optioning in traditional vehicles)
2. Vastly more demand than manufacturing capacity, so no incentive to try to capture small incremental gains through SKU variety
3. Relatively price-insensitive customers, requiring significant price differentiation to justify any shift in features
4. Absolutely existential needs to scale manufacturing; SKU complexity is the mortal enemy of scale

These combine to make today's announcements inevitable. A few thousand dollars is not enough for the overwhelming majority of Rivian customers to give up on the significant (place in line + quality) difference between Explore and Adventure. And without significant demand for both models, the hit to Rivian's manufacturing efficiency and ability to scale way outweights any advantage they get from having a slightly cheaper offering.

It will be several years before Rivian should even think about significant SKU complexity outside of accessories. Honestly I'm a little worried even about the current state of affairs (multiple motors, multiple drivetrains, 4+ simultaneous body types). By next year their SKU complexity promises to be almost on par with Tesla's despite significantly lower volumes.

 

[IThinkFreely]

U will

I went into the shop to see what FE models were available. They say they can deliver the one I chose on Saturday.

 

[DJG]

Oh, yeah. What was I thinking? Guess I had a brain fart ? Now, I can go back to just being pissed that I’m being forced into the Adventure pkg., that includes a bunch of stuff I don’t need.

Optimistic way to look at it is your delivery date is moving up and you'll definitely get a Rivian. Ultimately, it likely won't end up costing you much of anything, because it will also be worth more (perhaps additional interest). Price does not equal cost, unless you plan to be buried in it.

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