Thoughts on the new R1 pricing structure?

[ozziegt]

I'm okay with the performance being software locked, I paid for the performance on mine. I'm slightly okay with capacity being software locked, i got the standard+ so I know. The only part that is scummy is how they did it to make the max seem more valuable.

So maybe there should have been a single Dual Motor trim and the capacity should have been an option, like the performance option? I could see that. I wonder if some of this is dictated by how EPA rates vehicles. Maybe each range option has to be it's own trim so it can be EPA rated.

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[White Shadow]

Dual will be the preferred R2 platform the same way most people don't buy the Model Y performance, the Mach-E GT , The Etc... those are a smaller % of total ownership and R2 needs to get mass adoption.

Depends on the pricing. If it's not significantly more, I can see most people choose the tri-motor configuration.

 

[narmstrong79]

Depends on the pricing. If it's not significantly more, I can see most people choose the tri-motor configuration.

"Most" people buy the middle of the road trim when shopping for a new car. It's 2 years away so who knows.

My gut tells me they need to get the dual motor price close to an equivalent of todays $45K and close to 300 miles which is where Model Y, Mach-E ,and others are at.

I could see them offering a dual performance w/ minor updates (bigger brakes, different motors) in that low/mid $50k they would want to fetch a premium for a tri-motor. I could see that being similar priced to a standard Dual R1S at the time. (~$70K)

 

[jambaman84]

I think it is a mistake that Rivian is doing the nicer interior trims for higher end models. I paid 105k for my Quad R1S and that would only get me a tri motor vehicle right now.. Which is insane.
I think had they opened up the interior trims and exterior colors to all models, they would have made a ton more money. But I think the majority of people will go Dual Motor/Max Pack for the best bang for the buck.

 

[Dark-Fx]

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.

Rivian switched from 3 shifts to 2 shifts and now have even higher vehicle throughput. Of course they are saving money.

 

[jjswan33]

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

Tri Motor could very well be the sweet spot for many.

For highway cruising you can rely primarily on the more efficient front motor and disconnect the rear. For those occasions when you want to race with a lambo or rock crawl in Moab you've got the extra power and torque available.

 

[André]

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

Tri is actually the best specs compromise (for me at least) and when you will see pricing of the new Quad you may think that's the Quad who shouldn't exist. Frankly, who need 1,025hp and 0-60mph in 2.5s ?

 

[White Shadow]

Rivian switched from 3 shifts to 2 shifts and now have even higher vehicle throughput. Of course they are saving money.

That's because their demand went to crap. But it still doesn't mean that the vehicles themselves aren't more expensive to produce because of the added content.

 

[White Shadow]

"Most" people buy the middle of the road trim when shopping for a new car. It's 2 years away so who knows.

My gut tells me they need to get the dual motor price close to an equivalent of todays $45K and close to 300 miles which is where Model Y, Mach-E ,and others are at.

I could see them offering a dual performance w/ minor updates (bigger brakes, different motors) in that low/mid $50k they would want to fetch a premium for a tri-motor. I could see that being similar priced to a standard Dual R1S at the time. (~$70K)

I think it will be interesting to see how the pricing and configurations end up working out. If a standard dual motor is the only truly "inexpensive" option, them I'm sure that will be the big seller. But if Rivian can price the tri-motor just a reasonable amount higher, I think it will be a really popular choice. Right around $50k seems to be the sweet spot for new car buyers these days, especially the SUV crowd.

 

[bdwalters]

I think it will be interesting to see how the pricing and configurations end up working out. If a standard dual motor is the only truly "inexpensive" option, them I'm sure that will be the big seller. But if Rivian can price the tri-motor just a reasonable amount higher, I think it will be a really popular choice. Right around $50k seems to be the sweet spot for new car buyers these days, especially the SUV crowd.

I’m guessing the tri motor will be relatively expensive. Most are going to be plenty happy with a cheaper dual. Most buyers aren’t enthusiasts. The dual will be 90+% of volume.

 

[Shaqdeez]

No ones buying expensive cars, especially EVs. Are they not seeing the EV market? What in the world made them think of creating a more expensive vehicle when no one's buying them especially at this stage of the company's health. I have no idea what they're thinking. They should be in survival mode. I'm perplexed.

 

[bdwalters]

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.

Rivian is claiming that the materials cost is going to be way down and the manufacturing efficiency way up, which will drive gross margin improvement. That was the primary goal of the refresh. If they didn’t end up pulling that off, they are going to go bankrupt or get bought out before they ever ramp the R2. A better engineered part or vehicle isn’t always more expensive. The higher resolution cameras, for example, are probably cheaper than the old crappy ones were years back. The radar prices have probably come down. I bet the new front lighting bar probably costs less than the old one. They negotiated better pricing on many parts. You can make something both better and cheaper. It happens all the time. Weren’t LED TV thousands of dollars years back?

 

[bdwalters]

I think it is a mistake that Rivian is doing the nicer interior trims for higher end models. I paid 105k for my Quad R1S and that would only get me a tri motor vehicle right now.. Which is insane.
I think had they opened up the interior trims and exterior colors to all models, they would have made a ton more money. But I think the majority of people will go Dual Motor/Max Pack for the best bang for the buck.

That tri motor vehicle is better and more capable than the original quad. 3 isn’t necessarily worse than 4.

 

[bdwalters]

No ones buying expensive cars, especially EVs. Are they not seeing the EV market? What in the world made them think of creating a more expensive vehicle when no one's buying them especially at this stage of the company's health. I have no idea what they're thinking. They should be in survival mode. I'm perplexed.

I do worry that they are making too many configurations.

 

[Flank Steak]

These were the specs of the Lauch Edition Quad with off road. 314 Miles, HP was 835.

4 wheel, per wheel, torque control.

Quick Stats	2022 Rivian R1T Launch Edition
Motor:	Four AC permanent-magnet (2 in front & 2 in rear)
Output:	Front: Two 208-hp/207-lb-ft Rear: Two 210-hp/248-lb-ft Combined: 835 hp/908 lb-ft
Towing:	11,000 lbs
0-60 MPH	3 Seconds*
Range:	314 Miles*
As Tested Price:	$73,000

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