Chances for discounted pricing?

[Tr4ckD4ys]

With everything happening in the EV market right now, what are the chances that Rivian is going to follow suit on Tesla, Lucid et cetera and lower its entry level prices for the R1T and R1S over the next few months?

Sponsored

 

[DuoRivians]

All but zero, IMO. Tesla has since increased prices from the bottom.

Rivian’s near term demand generators:
- Dual motor option
- Leasing options with instant $7500 off
- And if they get really needy, I think they’ll provide cheaper financing rates via Chase than lower the price on cars. Messaging is very different

 

[jjswan33]

I think we will see lease discounts (tax credit) before we see price reductions.

 

[COdogman]

I don’t think they should. Just like BMW has said they have no plans to get into that price war, Rivian should stay the course and focus on their goal to become profitable next year.

If they can figure out a way to directly apply the tax credit for vehicles it applies to, that would be smart. Leases are supposedly coming s00n, which will help get people in that can’t buy.

 

[SoCal Rob]

With everything happening in the EV market right now, what are the chances that Rivian is going to follow suit on Tesla, Lucid et cetera and lower its entry level prices for the R1T and R1S over the next few months?

If they need a lower cost option the Standard Pack will be $6,000 less than the Large Pack options shipping today. If you combine that with leasing to establish a new entry level price $13,500 less than the lowest today I think there are people who can live with the 270 mile range.

 

[sub]

With everything happening in the EV market right now, what are the chances that Rivian is going to follow suit on Tesla, Lucid et cetera and lower its entry level prices for the R1T and R1S over the next few months?

In the next few months? No chance. I think a price increase is more likely than a price reduction.

There is still a long waitlist for the R1S. It would be absurd for them to lower the price when they have 6 months worth of production capacity already spoken for.

Further down the road, I do predict that Rivian is going to face a reduced demand at this price. But from what we hear, they are still selling vehicles at a loss. Reducing the price would just make that worse. Why would they want to lose 15k per vehicle on 100,000 vehicles when they could lose 5K per vehicle on 50,000 vehicles? (totally made up numbers to illustrate the point)

 

[Riviot]

Leasing options with instant $7500 off

Will Rivian get full $7500 leasing it if they still only qualify for $3750 to us plebs?

 

[DuoRivians]

Will Rivian get full $7500 leasing it if they still only qualify for $3750 to us plebs?

Yes, leasing loophole has no limitations. No income, battery component, where it’s manufactured

 

[Riviot]

Yes, leasing loophole has no limitations. No income, battery component, where it’s manufactured

This is all it takes for us to pull the trigger today. The $3750 loss meant saving a few more months for us so we've delayed confirming our R1S.

ARE YOU LISTENING, RIVIAN?!

 

[R.I.P.]

There is still a long waitlist for the R1S. It would be absurd for them to lower the price when they have 6 months worth of production capacity already spoken for.

Maybe. But it looks to me like they have burned though a good portion of the backlog. I can buy an S or another T today. It would be weird if there were too many people backlogged when the shop is full of them....

 

[Tr4ckD4ys]

Yes, leasing loophole has no limitations. No income, battery component, where it’s manufactured

What loophole? I thought the credit, even on lease, is now limited by income level. Ie if you fall into the $400k+ annual income category you’re not getting the credit anyway.

 

[lefkonj]

RJ has stated there won't be price discounts he can foresee. Tesla had no choice the competition heated up and it was hurting them, cut price and suddenly they are competing against different vehicles.

 

[jjswan33]

What loophole? I thought the credit, even on lease, is now limited by income level. Ie if you fall into the $400k+ annual income category you’re not getting the credit anyway.

That is not the case. All leases are considered commercial transactions which means they qualify without those limitations, tax credit goes to the manufacturer/dealer and reduces the capitalized lease amount. Exactly as @DuoRivians said.

At least for now, that could change with a different administration in the white house.

 

[Dark-Fx]

This is all it takes for us to pull the trigger today. The $3750 loss meant saving a few more months for us so we've delayed confirming our R1S.

ARE YOU LISTENING, RIVIAN?!

You could spin up your own LLC and lease it to yourself.

 

[SANZC02]

Seeking Alpha seems to think they will be announcing the end of the exclusive portion of the Amazon between now and first half of 2024. That could be a positive, especially if they already have vendors lined up for the vans.

Sponsored