Is Rivian getting desperate?

[Rividiculous]

This seems like a list of things a company does as it gets its, uh, stuff together.

In the last few weeks Rivian did the following for R1S in fairly quick succession:
1. Open shop to general public
2. Leasing
3. Drop in lease price
4. Releasing Standard+ for free

1. Offer product to consumers. (Do a lot of car companies succeed by strictly limiting offerings and making customers wait a long time?)

2. Leasing. Um, similarly, we want them to make it easy to buy the car. Should Rivian say they will only accept payment in gold bullion?

3. If better residuals allow a lower lease price, amen.

4. They’ve added a lower-end offering, thereby expanding the product line. As MidnightRivian noted, this gives them a good offering for those considering the EV9.

Could Rivian fail? Maybe, but thus far, they seem to be in the sweet spot. Ford dials back on the F150 and doesn’t bring out an SUV. Tesla has Elon baggage and the perfect truck for 1985. Lucid built a minivan. And GM (saddled by difficulties with Ultium) and Ram are increasingly thinking PHEVs for now. Meanwhile, Rivian is refining their products and getting ready for the R2.

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[jambaman84]

I think it's a really smart move on their part. This will improve sales. Now more versions of the car will qualify for the EV Rebate. I have an R1S right now, and now with this price drop, I can get the Dual Motor, Standard+ battery, Red color with black 22s and be 79K.. which also will get me $3750 off.. so around 75k or so .. I'll take that all day!

 

[Whatever_this_is]

I think it's a really smart move on their part. This will improve sales. Now more versions of the car will qualify for the EV Rebate. I have an R1S right now, and now with this price drop, I can get the Dual Motor, Standard+ battery, Red color with black 22s and be 79K.. which also will get me $3750 off.. so around 75k or so .. I'll take that all day!

DM standard + is already 78k how are you getting color and wheel under 80k

 

[jambaman84]

DM standard + is already 78k how are you getting color and wheel under 80k

R1T .. not R1S

 

[lefkonj]

I wouldn't say desperate but deliberate. Leasing started and the interest rates changed, so what. The new battery packs allow for more options and from their manufacturing perspective probably doesn't really matter. Maybe those new battery options are from the R2.

Rivian isn't just throwing these things at the wall to see what sticks, they are doing these things based on data and a plan. Turn a profit, make the R2, revise the R1 in 25, etc etc.

 

[manitou202]

Everyone should have assumed once supply and demand begin to equalize that Rivian would lower prices and/or offer better deals like the new lease rates.

This also seems to align with their new Standard+ battery pack launch. Honestly it appears their timing is about perfect. Right as the supply/demand equalization begins they have a more competitive pack to offer.

My guess is at the current lease rates, and with the Standard+ dual motor starting under $80k, they will remain very competitive in the 3-row electric SUV market. EV9 is probably the closest competitor for the price, but even their lease rates aren't as attractive. We were considering the EV9 to replace our EQS SUV, but now it will likely be an R1S.

This seems like really good news for Rivian and it shows they seem to have a well thought out business plan for the R1 platform. Can't wait to see the R2 next month.

 

[fbkr]

In the last few weeks Rivian did the following for R1S in fairly quick succession:
1. Open shop to general public
2. Leasing
3. Drop in lease price
4. Releasing Standard+ for free

I’m guessing there’s a real mismatch between supply and demand at current prices. Personally im going to hold out until things stabilize, as it feels that these demand levers haven’t/won’t do enough to hold them over until R2 release. I’ve been burnt by Tesla on the MY discount fiasco before and don’t want a round 2.

I wonder how much more they can really pull the pricing lever. The Standard+/Dual motor R1S ($78k, 315 mile range) has basically reached pricing parity with the Model X (~$80k, 335 mile range).

I could see them make features like the max pack cheaper, perhaps.

 

[manitou202]

This is following a pretty typical product cycle.

A new product starts off with high demand, out pacing supply. Mid cycle, supply and demand equalize and prices stabilize. Then towards the end of the product life cycle demand falls and prices are dropped before its replacement is launched.

The R1 platform is transitioning from the Growth to the Maturity phase.

 

[Dustyshades]

Rivian is running ads on Instagram, YT, etc... I do think they are not hitting the delivery numbers they were hoping for. Plus the unveil of the R2 next month to gain a bunch of reservation cash, it'll be interesting to see if they can turn profitable.

Reservation cash cannot lead to profits because it’s not counted as revenue. It’s actually accounted for as a liability on the books until the order is delivered (or alternatively cancelled)

 

[Zoidz]

Is Rivian getting desparate?

When GM, Ford, RAM, etc. offer sales or leasing incentives, are they desparate? When Telsa lowers prices, are they desparate? Is Amazon desparate when they hold Prime Days?

 

[DaveA]

Wish I sold my stock in December! And bought in yesterday. But alas I have hope.

Its 2 years till R2...I'm sure you'll have another chance to buy low, unfortunately. Unless some other lucrative van deals happen.

 

[R1 EVY]

ha. ditto.... hanging on, either to the bottom, or hopefully a big bounce....

Me too. Ride or die on the stock at this point.

 

[MidnightRivian]

Rivian is getting smart and leveling up.

They know how to make shorts close their positions and run for the exit.

 

[RedRiv]

Early adopters have all purchased. Now the target is early mainstream. Tougher nut to crack, particularly with all the right wing anti ev spin, thus more incentives in various forms.

 

[Carscott]

Early adopters have all purchased. Now the target is early mainstream. Tougher nut to crack, particularly with all the right wing anti ev spin, thus more incentives in various forms.

Not at all. Rivian is trying to get all the 150K purchase prices served first and feathering in the odd pre order holder here and there. They actually said this in the last quarterly call go listen. They need to close the negative revenue per vehicle in future reporting and if they keep selling pre order holders that won’t happen. If they need the delivery number to go up then pre order holders will get calls from rivian. At least that’s my guess.

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