R1 vs Model S pricing

[Ray R]

Knowing that the battery pack is one of the most expensive components in an EV, I’m trying to figure out how Rivian can price their R1 vehicles less than a Tesla Model S. I’ve got a 180kWh max pack R1T pre-ordered with the Explore package and some extras, and it’s coming in at @$80k. A Tesla Model S long range with a 105kWh battery pack is @$90k without any extras.
Are Rivian’s batteries (Samsung) that much cheaper than Tesla’s? And would cheaper = poorer quality?

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[crashmtb]

A pineapple is also a different price compared to a pumpkin.

 

[electruck]

SDI batteries are known for their quality so I wouldn't worry about that.

 

[Ray R]

A pineapple is also a different price compared to a pumpkin.

You’re missing the point. My question is about the cost to build a vehicle with a 105kWh vs 180kWh battery. I can also add that Rivian uses four motors vs only two in the S. Why isn’t the Rivian more expensive than the S?

 

[SANZC02]

You’re missing the point. My question is about the cost to build a vehicle with a 105kWh vs 180kWh battery. I can also add that Rivian uses four motors vs only two in the S. Why isn’t the Rivian more expensive?

Maybe raal question should by why is the Tesla so expensive….

I know what I paid for my Model S 75 and was always surprised that the higher performance vehicles had the interior. It’s ok for a 75k car but not for a 120k car.

 

[SeaGeo]

You’re missing the point. My question is about the cost to build a vehicle with a 105kWh vs 180kWh battery. I can also add that Rivian uses four motors vs only two in the S. Why isn’t the Rivian more expensive than the S?

Market segment. It's not a cost issue for the S.

Do you think the EQS and Lucid Air cost that much more to make than the S? The hummer rolls in with a 200kWh battery at $112k or whatever. That's a MUCH larger vehicle than the S with about twice the battery size.

Or, think back to gas vehicles, does a king ranch cost that much more to make than an XLT?

 

[crashmtb]

You’re missing the point. My question is about the cost to build a vehicle with a 105kWh vs 180kWh battery. I can also add that Rivian uses four motors vs only two in the S. Why isn’t the Rivian more expensive than the S?

No I’m not.
If you were to look at costs on a BOM for both vehicles, theyd probably be quite close.


Tesla makes things other than cars, is building multiple new factories, has to pay for Elon’s mdma habit etc. Higher margins in high end product subsidize these things, probably.

Rivian only makes one thing, is brand new, and wants to attract customers.

 

[SeaGeo]

No I’m not.
If you were to look at costs on a BOM for both vehicles, theyd probably be quite close.


Tesla makes things other than cars, is building multiple new factories, has to pay for Elon’s mdma habit etc. Higher margins in high end product subsidize these things, probably.

Rivian only makes one thing, is brand new, and wants to attract customers.

Rivian has to pay for RJ's vegan habit though. Impossible burgers aint cheap!

 

[Rhidan]

OEMs do not price cars based on the cost of the components or the cost to build the car

 

[Ray R]

Why would someone choose the more expensive S vs the Rivian which has much more versatility and similar performance and luxury specs?(and still qualifies for the fed tax credit)

 

[crashmtb]

Why would someone choose the more expensive S vs the Rivian which has much more versatility and similar performance and luxury specs?(and still qualifies for the fed tax credit)

Because they want a sedan?

 

[Scott]

Tesla just raised prices recently. It has nothing to do with costs, it has everything to do with supply and demand. same reason used car prices are through the roof. More people want Tesla’s than Tesla can produce.

If Rivian is successful I expect you will see prices creep up. Right now they have about 50k preorders and some significant portion won’t actually take delivery. They don’t know their true demand level yet.

 

[Scott]

Why would someone choose the more expensive S vs the Rivian which has much more versatility and similar performance and luxury specs?(and still qualifies for the fed tax credit)

Because the Tesla is a proven product. Or they don’t want a big truck.

 

[Ray R]

Because they want a sedan?

Many manufacturers are no longer making sedans. I wonder why? (not really).

 

[Temerarius]

Tis a silly question, with many answers.

1. As folks have pointed out, it (Tesla) is a proven product, Rivian is not.
2. Tesla has a je ne se quois.. no different then any other established brand like a Ferrari, a BMW, or otherwise "higher end" manufacturer.
3. Truck =! Sport Sedan

It's like asking, why does a Ferrari cost more than a F250, and why would anyone want the Ferrari?

"Because people like, what people like, and are willing to pay for what they like."

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