Will the $45k Rivian R2 actually happen?

[justinkitswa]

I hope so - it's less about the MSRP on what they sell (I mean, does it matter if it's listed at $45k or $48k, really?)

It's more indicative of the operational and infrastructure investments paying themselves off.

I suspect the reason Rivian "looses" money on every R1S is because they've got to pay down the capital cost of building the infrastructure and operational model to sell them. Eventually that capital investment is paid off, and Rivian will start to make a profit on them (all things being equal)

It's the same reason Ford and GM "lost billions" on the EVs they briefly sold - they chickened out long before the investment into the tooling and factories paid itself off, and simply wrote off the loss. If they built a brand new factory to sell a single vehicle, they'd loose billions regardless, unless they sold that one vehicle for billions.

Selling an R2 at $45k will likely happen once the infrastructure capital investment cost is paid off and returns to shareholders are realized.

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[sparked]

Considering they've dropped the price (granted, by ten bucks..... but that's still lower than $45k) since the announcement, and have stuck by that $45k price-point for two years, I'm pretty confident that they will be able to stay with the price - considering they plan on being gross unit profitable around the end of this year.

I'm just saying a year is a long time and RJ is already talking about supply chain issues now with things like memory pricing. I'll leave open the possibility for things out of their control bumping up the price a little.

 

[captainjp]

Yes

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