Thoughts on the new R1 pricing structure?

[ozziegt]

The roof is an option on the lower trims. The audio is a good point. Putting a sub par audio system in a $90k vehicle isn't a good move.

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[Teledatageek]

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

Thanks. In my price comparo, I added in the electrochromatic glass + upgraded sound. I do love the bronze accents, but not sure that and different species of wood + better stitching does it for me. I like nice stuff don't get me wrong, but like it to make sense to me $ wise.

 

[ozziegt]

Thanks. In my price comparo, I added in the electrochromatic glass + upgraded sound. I do love the bronze accents, but not sure that and different species of wood + better stitching does it for me. I like nice stuff don't get me wrong, but like it to make sense to me $ wise.

Yeah I can't imagine it costs any more to produce than the regular trim. It just looks nicer. Which is even stranger that the lower end models don't have it.

The only thing I can think of is we will see a DM Ascend in a year or so. They are just trying to push sales of the tri motor for a bit.

 

[Kidentist]

IMHO they are "aiming" towards the high-end SUV market (not many, if "any" competitors on the EV side), because lets face it, most of those folks don't need to ask "How much is the....."
I also see the R1T Truck becoming less and less prominent. Again, lets face it, most "Truck guys" that I know would much rather have their lifted F250s with the fancy trims at that price range. This again applies to me, mostly because I live in a rural area. Regardless, SUVs are the darlings of the automotive world (cough, cough...Porsche)
Lastly I see their R2, R3 line as their "entry" vehicle, which makes sense. Kind of like the Model Y, but a LOT nicer and more capable (except for range??).
Overall a good strategy. Look at how well luxury brands have done over the last 10 years !!!

 

[Dark-Fx]

Thanks. In my price comparo, I added in the electrochromatic glass + upgraded sound. I do love the bronze accents, but not sure that and different species of wood + better stitching does it for me. I like nice stuff don't get me wrong, but like it to make sense to me $ wise.

It's pretty typical for auto companies to stagger their packages in a way that you have to get a more expensive vehicle than you might have otherwise purchased just to get a specific feature you want over what is in the base model.

 

[Flank Steak]

People only bought the quad before because it was the only option.

Ummm, no.

 

[Flank Steak]

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

I actually think the old stitching looks quite a bit cleaner and the new mats are a miss in my opinion.

 

[yizzung]

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.

I think they are 100% going to be less expensive to manufacture. If not, then Rivian should fold up shop now and look for bankruptcy protection... Much of the shit they are touting in the press (e.g. reducing a mile of wire in the truck) has zero impact on buyers but will make the truck cheaper to produce and cheaper to service.

I don't have numbers in front of me -- I'm sure someone on this message board has ventured down this rabbit hole -- but it's fair to say that many of us Gen1 folks got a screaming deal in exchange for taking on some risk from a first-time manufacturer. Locked-in early-bird pricing (plus EV tax credits), plus lots of "freebies" like camp speakers, powered toneau covers, quad motors, Meridian audio, etc. etc.

All those freebies plus a not-very-ramped-up production floor = delighted (early) owners who have served as ambassadors for the company, but at the cost of absolutely dreadful financial performance. The pricing and the packaging going forward must be designed to drive margin. Fewer models to simplify production. Higher prices for the really fancy stuff.

The big question is whether or not the market will bear higher prices.

 

[White Shadow]

I think they are 100% going to be less expensive to manufacture. If not, then Rivian should fold up shop now and look for bankruptcy protection... Much of the shit they are touting in the press (e.g. reducing a mile of wire in the truck) has zero impact on buyers but will make the truck cheaper to produce and cheaper to service.

I don't have numbers in front of me -- I'm sure someone on this message board has ventured down this rabbit hole -- but it's fair to say that many of us Gen1 folks got a screaming deal in exchange for taking on some risk from a first-time manufacturer. Locked-in early-bird pricing (plus EV tax credits), plus lots of "freebies" like camp speakers, powered toneau covers, quad motors, Meridian audio, etc. etc.

All those freebies plus a not-very-ramped-up production floor = delighted (early) owners who have served as ambassadors for the company, but at the cost of absolutely dreadful financial performance. The pricing and the packaging going forward must be designed to drive margin. Fewer models to simplify production. Higher prices for the really fancy stuff.

The big question is whether or not the market will bear higher prices.

Think about what Rivian added on the refresh models. The heat pump, the new roof glass, etc... I don't see the new models being less expensive to manufacturer. It would be interesting to see the actual cost, but I don't think we'll ever know.

 

[yizzung]

Think about what Rivian added on the refresh models. The heat pump, the new roof glass, etc... I don't see the new models being less expensive to manufacturer. It would be interesting to see the actual cost, but I don't think we'll ever know.

We will know. It's a public company. We can see their gross margins every 90 days.

 

[elektrode]

The tri motor basically replaces the gen1 quad. Similar performance numbers. But it starts at $106-$110k now. Quite a bump.

First reaction was to be pretty jelly of all the new stuff. Then I configured a tri-motor and was like “whoa… uh… yikes”. I feel a lot better about what I paid for my 2 year old Gen 1 T.

My Gen1 feels like it’ll depreciate much faster now. That sux. But I can hang on for a while now. Gotta thread that needle between warranty expiring and R2/R3X available. LOL

 

[White Shadow]

We will know. It's a public company. We can see their gross margins every 90 days.

That's not going to tell us what it costs them to make each unit.

 

[Jnz]

If you option up an R1S with Dual Performance Max, with most of the options, including the electrochromatic roof, premium audio, and air compressor, it'll be $103k, and still won't have the new Storm Blue or interior color choices that you can get on the Tri Max for $109. That seems like a no brainer if you like the different interiors.

 

[CardiacR1S]

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.

Love to see the numbers on this:
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.
Won’t production costs decrease with less wiring, in house motors, less chips etc…?

 

[bdwalters]

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.

Rivian is claiming that they have reduced the cost to manufacture significantly with the refresh. Are you saying they are lying about that?

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