140 degrees
Well-Known Member
- Joined
- Mar 14, 2022
- Threads
- 15
- Messages
- 153
- Reaction score
- 315
- Location
- Auburn, CA
- Vehicles
- BMW i3, Rivian R1T
Good discussion. According to Clean Technica, the material cost for a model 3 is approximately $16500. After Tesla's most recent price cuts, their average transaction price for a Model 3 is about $43K. So if Rivian were to get to Tesla-like margins on a $75K vehicle, they should be trying for a material cost of about $29000. That means we have to eventually find $46K in savings.I did a detailed breakdown on Rivian R1S few year ago part by part Munro style before Munro got his hands on the R1S.
At that time I realized it was underpriced and I put my order in. Few months after that, Rivian decided to raise prices ~ 20%.
Take a look and let me know where you would shave $$$ from the Quad motor build.
Total = $75,350
Part Cost Engine $16,000.00Suspension $7,500.00Cab $6,500.00Battery $20,000.00Wheels $3,000.00Lights $1,850.00Audio $3,000.00Seats $4,000.00HVAC $2,500.00Brakes $2,500.00Nav / Camera $3,500.00Paint $2,000.00Glass Roof $1,000.00Charging $2,000.00
Batteries are approximately half the cost, compared to intro. They brought the motors in-house and ship with two instead of 4. The upgraded wheels are now an added cost option. That could save us $23K, and we still need to find $23K.
If you add Lights, Audio, Nav/Camera, and Charging, you get about $10K. Primarily electronics, and these can be aggressively cost reduced. The first networking card our company shipped sold for $3K, 3 years later it was $100, a few year later these cards sold for $10. Let's say we can take $7K out of electronics.
So we are still looking for $16K of savings, and the remaining items on your list total $28,500. This is the hard stuff. With higher volumes, smart redesign, and good negotiation, you can get part way there. Reaching Tesla margins look hard, but Rivian isn't losing money and going out of business either.
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