Thoughts on the new R1 pricing structure?

[bdwalters]

Ummm, no.

Do you honestly think the quads are going to be more than, say, 5% of their sales volume going forward?

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[bdwalters]

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

I agree. I’m not crazy about the new trims.

 

[bdwalters]

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 hear about it when Rivian reports their financials. They have already talked about it.

 

[DuoRivian]

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.

They reduced the number of ECUs and a lot of wiring. They simplified the build process. They simplified the battery construction and took 20kWh (at least $2k) out of the large pack and they decontented so this gen 1.2 is cheaper to make.

 

[Flank Steak]

Do you honestly think the quads are going to be more than, say, 5% of their sales volume going forward?

No, sir. The upcoming quad max is a very niche product and, at the moment that is the only choice. A $30,000 jump over the last gen 1 quads.

 

[Epicloop]

Well they won't be selling many of these in Canada.

 

[Eric9610]

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 actually called this pricing structure and motor configuration an a speculatory post about the update. Profitability comes 2 ways, reduced manufacturing cost and MSRP increase. People have to be delusional to think the price was not going up. Infact the base price is $69k same as old they say but if you add in all the items they removed from G1 base price is actually $73k for same spec G2... You can get a lot of really nice cars @100k+ I don't know if this was a smart strategy for Rivian. Time will tell. I think the new average price will be like 90k up from $80k.

I am in a strange boat, I don't like the ascent interior trims and would rather the adventure. I think a lot of people will pick DMP Large pack.

 

[Thedude]

I’d still like a stripper/fleet model R1T. Higher durability vinyl (not the current fake leather vinyl), no wood, no glass roof, no air suspension, tape deck, etc. It would even be a better fit for an “adventure” vehicle than the current offerings.

 

[Goose]

While the pricing structure is fair for what you're buying it's still cost prohibitive for even upper middle class people that want a truck, which is a HUGE population. They need to find a way to introduce trims that will decrease the current lineups by $20K. I'm not saying remove the current offerings, just have a lower price point that mirrors the current models at a $20K lower price. That will allow them to reach more of the population.

Personally, I would love to see an R1T with the fabric and wood dash of the R2, with the adaptive coil sprung suspension of the R2, with a Max pack go for mid 70's. That would let people like myself and the majority of my friends, colleagues, and neighbors purchase an EV truck.

 

[Eric9610]

I’d still like a stripper/fleet model R1T. Higher durability vinyl (not the current fake leather vinyl), no wood, no glass roof, no air suspension, tape deck, etc. It would even be a better fit for an “adventure” vehicle than the current offerings.

I agree! If they made a "entry level version" at $60k with solid roof, no air suspension, standard+ pack and DM, they would kill it. 280-300 miles of range.. This might have been the biggest miss yet for them.

Related to the R1S they should have kept pricing from Gen1 but in Gen 2 introduced a long wheel base version only on the accent trim levels. This would be built on the R1T platform TM could have started at $125K and the QM could have gone up to $160k. Second row captain seats. They should crush it with that spec.

 

[WorldComposting]

For those saying this will be more expensive I highly doubt it as I think the quad motor was a large seller for gen 1 and from everything I heard those Bosch motors were much more expensive than the internal enduro motors. Combine that with now selling a internal build tri motor for the same price as the gen 1 quad, less chips, and less wiring. Also for the wiring they didn't mention the gauge but if it is higher gauge that also could make a massive difference. Everything I saw mentioned length but really weight would be a better number to provide. I'm sure there are some changes that help with manufacturing as well now that they have gone through the process for a couple years.

It will be interesting to see but I'm hoping these are cash flow positive.

 

[Eric9610]

For those saying this will be more expensive I highly doubt it as I think the quad motor was a large seller for gen 1 and from everything I heard those Bosch motors were much more expensive than the internal enduro motors. Combine that with now selling a internal build tri motor for the same price as the gen 1 quad, less chips, and less wiring. Also for the wiring they didn't mention the gauge but if it is higher gauge that also could make a massive difference. Everything I saw mentioned length but really weight would be a better number to provide. I'm sure there are some changes that help with manufacturing as well now that they have gone through the process for a couple years.

It will be interesting to see but I'm hoping these are cash flow positive.

They will be cash flow positive. The complaint is the price to consumer increased drastically. On average from G1 to G2 for comparable specs the price increase $8-15k before options. Thats roughly 10%. Not to mention they removed features as I stated above on the EL models.

 

[White Shadow]

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

The cost to manufacture doesn't necessarily equate to the overall cost of the vehicle. Cheaper to build doesn't mean cheaper overall. My guess is that the additional features added more cost than any manufacturing savings, that's what I'm saying.

 

[White Shadow]

I’d still like a stripper/fleet model R1T. Higher durability vinyl (not the current fake leather vinyl), no wood, no glass roof, no air suspension, tape deck, etc. It would even be a better fit for an “adventure” vehicle than the current offerings.

Tape deck? Seriously? Why not an 8-track player instead? ?

 

[narmstrong79]

Tri motor shouldn't exist... change my mind

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