Model Y receives 4th price increase in 30 days. Over 12mo, Model Y price increased from $48,900 to $58,900. What can we expect from Rivian?

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My mind is blown. On November 11th, Tesla raised the price of the Model Y another $1000. Current Model Y owners have an appreciating asset on their hands, with owners able to sell their vehicles for thousands more than they paid for them.

How has Rivian not raised prices?

Has anyone on the forum received a Rivian yet?

For anyone on the forum who has received a Rivian; did you pay the original pricing?

Has Rivian confirmed how they plan on handling price increases? Tesla does not wait for a new model year, or calendar year to raise prices. They just do it...all the time.

Is Tesla's behavior setting a precedent for the entire auto industry?

As someone who made a R1S reservation in early 2021, I do not believe I will get the vehicle for the price quoted. It will be 2yrs+ before I get my R1S. I am mentally conditioning myself to pay roughly $10,000 more for the R1S, and this is using the Model Y/3 price hikes to form an opinion. Is anyone else beginning to mentally condition themselves for price hikes?

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[xyskis]

I suspect it's because they haven't meaningfully made a whole lot of cars. Once we're 5-20k into the ramp, I think there might be some price/structure adjustments as they begin to figure out how efficient/costly their build process is. With Tesla, the demand is so high that supple is relatively inelastic. They may drop prices once supply catches up.

 

[stumptown85]

Keep in mind that Tesla is focused on maintaining profit margins. They are no longer in the growth at all costs stage. Rivian needs to get as many cars in customers hands as possible, even if that means a negative margin on every vehicle. They need to grow and lose money to do it. As Rivian as ales, costs will come down and maybe they will still need to raise prices, but IMO now is not the time, nor is a year or two from now.

 

[Sully151]

Rivian is already near the MSRP cap for the new tax credit structure. I can’t believe they will go over.

If they raise their prices now, what happens to the stock? I assume it will take a pretty big hit.

Tesla lowered the prices of their cars when the tax credit went away. Now that it looks like it might be coming back, they are raising them again.

 

[bhaberle]

It definitely is frustrating to see all those Tesla hikes. I was about to put in for a Model X but the price hikes for that as well put a bad taste in my mouth so I put in for the R1S instead. Might put one in later but we'll see.

 

[Max]

It definitely is frustrating to see all those Tesla hikes. I was about to put in for a Model X but the price hikes for that as well put a bad taste in my mouth so I put in for the R1S instead. Might put one in later but we'll see.

I feel the same way. I consider taking the tax credit from their customer’s pockets to add to the already ridiculous profit margins while claiming their goal is making EVs accessible to everyone is a bit disingenuous. However as a business that can get away with it, I don’t blame them. When some one is willing to pay $10K more, it is stupid to sell it for less.

As far as Rivian goes, with the money they just raised, they don’t need to be profitable for a while. Besides if Ford can sell a Lightning at $40K, a $70K Rivian shouldn’t be that difficult to make money off of.

Rivian has already less reservations than Ford and Cybertruck. If their production capacity is going to be 150K/year they need more orders not less. Raising prices not only reduces number of sales from existing reservations, it will reduce future orders. Tesla Raising prices make Rivian even more attractive. By keeping the prices the same or introducing lower priced versions, Rivian can take advantage of Tesla price hikes.

 

[bhaberle]

I feel the same way. I consider taking the tax credit from their customer’s pockets to add to the already ridiculous profit margins while claiming their goal is making EVs accessible to everyone is a bit disingenuous. However as a business that can get away with it, I don’t blame them. When some one is willing to pay $10K more, it is stupid to sell it for less.

As far as Rivian goes, with the money they just raised, they don’t need to be profitable for a while. Besides if Ford can sell a Lightening at $40K, a $70K Rivian shouldn’t be that difficult to make money off of.

Rivian has already less reservations than Ford and Cybertruck. If their production capacity is going to be 150K/year they need more orders not less. Raising prices not only reduces number of sales from existing reservations, it will reduce future orders. Tesla Raising prices make Rivian even more attractive. By keeping the prices the same or introducing lower priced versions, Rivians can take advantage of Tesla price hikes.

Totally agree. I am rooting for all three of those companies and am a shareholder of them each as well. They all have their own great niches.

 

[Blueassassin]

Makes me feel like the tax credit is going to the companies not the people trying to buy the car. I think they should get rid of the incentive we already wont have to pay any tax on the fuel. also makes no sense to have a cap on the vehicle price when on an $80,000 vehicle we will be spending $8,000 plus on sales taxes and registration fees on $100k it will only be more.

 

[Dark-Fx]

Makes me feel like the tax credit is going to the companies not the people trying to buy the car. I think they should get rid of the incentive we already wont have to pay any tax on the fuel. also makes no sense to have a cap on the vehicle price when on an $80,000 vehicle we will be spending $8,000 plus on sales taxes and registration fees on $100k it will only be more.

I'd like to see a tax rolled into the cost of buying an ICE. Sliding scale based on how much CO2 they emit.

 

[Sgt Beavis]

I'd like to see a tax rolled into the cost of buying an ICE. Sliding scale based on how much CO2 they emit.

I think it’s too early for that but it could very well happen around 2030 as we make final push to get away from ICE.

 

[Jehorton]

I'd like to see a tax rolled into the cost of buying an ICE. Sliding scale based on how much CO2 they emit.

More CO2 emissions from the mining machines to supply BEV batteries.

 

[Dbeglor]

I think it’s too early for that but it could very well happen around 2030 as we make final push to get away from ICE.

Time will tell, but I imagine there will be a natural tax for ICE in that they will be more expensive upfront in addition to during ownership by that point. The market will take care of itself without the need for interference.

 

[Sgt Beavis]

Time will tell, but I imagine there will be a natural tax for ICE in that they will be more expensive upfront in addition to during ownership by that point. The market will take care of itself without the need for interference.

Yea, that’s certainly a viable scenario.

 

[SeaGeo]

More CO2 emissions from the mining machines to supply BEV batteries.

not to sidetrack the thread, but CO2 emissions are significantly less over the lifetime of a BEV, even without a clean grid. Even when accounting for battery resources.

I'd like to see a tax rolled into the cost of buying an ICE. Sliding scale based on how much CO2 they emit.

We can't even pass a carbon tax in progressive States like WA, and the federal gas tax for infrastructure hasn't been increased since it was last adjusted 1993. It's not even indexed to inflation. If a tax in ICE passes anytime soon, I'll be happy but surprised.

 

[Dark-Fx]

More CO2 emissions from the mining machines to supply BEV batteries.

If you're going to consider well to wheel emissions for BEVs, you have to do it for ICEs as well. It's well studied that it doesn't take very long into the lifetime of a BEV for the equation to be an advantage for EVs, even in areas where the power mix is heavily coal produced.

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