Thoughts on the new R1 pricing structure?

[ozziegt]

First off, I'm really impressed by the updates they have made to the R1 platform. It's a great effort by the Rivian team and will definitely be a good boost for the quality of the product. However, after having a night to think about it I am not so bullish on their sales figures. Pricing has gone way up, and the pricing structure doesn't make sense to me:

1. The tri motor basically replaces the gen1 quad. Similar performance numbers. But it starts at $106-$110k now. Quite a bump.
2. Most people probably don't care about a 0-60 of 2.9 vs 3.4 so they could opt in for a Dual Performance. However, the Ascend trim is not available for the dual motors. This feels like a big miss to me. Why can't the model that does 0-60 in 3.4 seconds and still has a price of $90k have the premium interior? Even 0-60 in 4.5s is good enough for most people but the premium interior is not available. So, the models that people are more likely to buy don't have the quality upgrades that Rivian is bragging about.

I am concerned that between the higher pricing and the perception of the "lower class" interior, it's really going to hurt R1 sales. Thoughts?

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[bdwalters]

Sales of the quad and tri are going to be very, very low. Most are going to buy the base dual motors, which are still far more capable than most will ever need. People only bought the quad before because it was the only option. I do think that the nicer trims will at some point be pushed down the stack.

 

[Teledatageek]

Do we know what the "premium" interior differences are? I have read - more stitching, of course the two tone, but what else?

 

[yizzung]

The two new interiors don't seem all that different IMO. Premium gets you 2-tone and some additional leather accents. If you feel really strongly about it, I guess Rivian wants you to put your money where your mouth is.

They seem to be bundling high-end performance with high-end trim, instead of allowing people to customize every little thing. Same playbook that BMW and every other high-end car mfg follows (e.g. M package interior plus M package horsepower.) These limitations on combos presumably cut way down on the number of configurable options and helps Rivian lower costs.

No comment on the price increases. I haven't done the math. They lose something like $40K on every new vehicle sold so I guess they are doing whatever they can to improve margins.

 

[Teledatageek]

The two new interiors don't seem all that different IMO. Premium gets you 2-tone and some additional leather accents. If you feel really strongly about it, I guess Rivian wants you to put your money where your mouth is.

They seem to be bundling high-end performance with high-end trim, instead of allowing people to customize every little thing. Same playbook that BMW and every other high-end car mfg follows (e.g. M package interior plus M package horsepower.) These limitations on combos presumably cut way down on the number of configurable options and helps Rivian lower costs.

No comment on the price increases. I haven't done the math. They lose something like $40K on every new vehicle sold so I guess they are doing whatever they can to improve margins.

That's what I was thinking about the interior's. My wife loves the Storm Blue color on the Tri Max and Quad. It's meh to me. I'm an orange car/truck guy (currently in a Code Orange Raptor) and kind of lean to the Canyon Red which of course is available across all of the configs.

I'm having a hard time with the $14K bump from a Dual Large to the Tri Max (and that is with picking up all the standard options on the Tri Max + the Performance Upgrade on the Dual Large. Tri Max of course is 1/2 second quicker to 60 and has 50 more miles of range.

 

[jjswan33]

To be fair I would have gone with a DM had I been able to get the new interior option but instead I ordered the TM.

So it's clearly a strategy to have the new and exciting offered on higher margin vehicles, seems to be working so far, at least it did on me.

 

[Dark-Fx]

Ascend trim is only available with a vehicle that has Rivian's 3rd generation motors. I thought it was an obvious thing.

 

[thair]

Very nice incremental updates for the vehicles but the pricing is definitely aspirational.....cuts will follow probably sooner than they would like.

 

[Teledatageek]

Ascend trim is only available with a vehicle that has Rivian's 3rd generation motors. I thought it was an obvious thing.

What's less obvious to me is what are the advantages of the Ascend trim. Maybe it's documented someplace? Lots out there to read, but not clear about all that is "nicer".

 

[R1Guest]

This project was all a veiled attempt to increase margins and we’re seeing that with the new trim levels and pricing structure. The improvements do not warrant the price increase but they’re marketing what every other auto dealer would call a mid cycle a refresh as a “new generation”. Sure if you list every minute detail, you’d think it’s a long list. However very minor exterior changes, new interior optional upgrades, and then minor software changes is not a new generation.

And this isn’t someone who is trying to give himself a dose of copium. I could’ve changed my order and decided not to.

 

[White Shadow]

I agree. This is a premium priced vehicle and should have the most premium trim and features on all R1 models. In my opinion, it's going to be a hard sell having the "low rent" trim on a vehicle at this price point, even if it's possible to go well north of $100K loaded up.

The R2 can't get here fast enough. Rivian desperately needs the lower price point for most customers.

 

[Noplacelikeloam]

The Quad has and will always be the halo vehicle. It will hold its value better and be a niche vehicle, like a Raptor R. Buyers of extreme performance vehicles are less price sensitive so I imagine it will work well for RIVN. I hope they produce them in limited numbers TBH.

The real doozy will be if the quad is under 120. Then the tri values will be in trouble. But given they wont even tell you the price makes me think its 120+.

 

[White Shadow]

No comment on the price increases. I haven't done the math. They lose something like $40K on every new vehicle sold so I guess they are doing whatever they can to improve margins.

True, but all the chatter on the forum was that the refresh was going to be primarily a cost savings move by Rivian. I think most people here thought that meant the changes to the vehicle would make it less expensive to produce for Rivian and then even if they held prices steady, they'd get closer to profitability on each unit sold. I guess we can throw that theory out the window. There's no doubt in my mind that the refresh vehicles are every bit as expensive to manufacture (if not more) than the OG vehicles. HIgher pricing is going to be a tough sell for sure, as it was already priced pretty high.

 

[Dark-Fx]

What's less obvious to me is what are the advantages of the Ascend trim. Maybe it's documented someplace? Lots out there to read, but not clear about all that is "nicer".

The wood used, seat stitching, bronze accents, are all "premium". There's also upgraded sound and the electrochromatic glass that are obligated on the Ascend.

 

[ThatOneGuy]

I'd buy a Dual Max R1 with Ascend Trim ASAP if they offered it. I value range and comfort, not extreme performance, so a third motor doesn't appeal to me very much.

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