Rivian offering preorder price difference vouchers for remaining price protected pre-order holders

[evguy]

I'm surprised it's taken Rivian this long to change-up and get the early people to buy or not. Rivian at the end of the day is in the business to make money and allowing a smaller and smaller subset of their reservation book hold out perpetually is a liability.

This is also a way for them to limit early-bird pre-pricing on the refreshed product.

My guess is the vouchers will never apply to the refreshed product because the refreshed product wont' appear in the shop until after Sept. 30.

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[Riviot]

 

[C12farmer]

It's great (for customers) that Rivian is letting people apply the discount across all configurations. Dual Motor, Standard + seems like a sweet spot.

Nice thing about the discount %, the more you upgrade, the more you save.

I wonder how many preorder people are really left and how many will finally place their orders. Once new vehicles with the "improvements" start rolling out, that will be the last barrier for preorder holders. It's not going to get any better than that.

When it comes down to the end, I wonder if they will have enough vehicles in the configs people want. I hope Rivian doesn't play games. They need to sell as many vehicles as people are willing to buy, even at a loss to pre-order holders.

It's going to be an interesting 6 months.

 

[MidnightRivian]

Got the email as well and looking at inventory models. Cheapest I saw for dual motors lease was $514 a month after $7k down. Looks like that one disappeared.

Cheapest now is quad motor for $516 a month after $7k down.

This April shutdown must be a bigger change than what Rivian is letting on.


For purchasing a dual motor, does this mean those who signed that pre-pricing agreement could get the full $7500 off for 2022 taxes? Wouldn't be bad to get the dual motor for $64k and then get back $7500 from the irs.

This is what I’m thinking too. It would be insane to get 20% off dual motor pricing and also a tax credit on top.

 

[sphereobject]

My guess is the vouchers will never apply to the refreshed product because the refreshed product wont' appear in the shop until after Sept. 30.

This is my guess as well. I was going to hold out for the refresh, to try to hold out to roll my pre-price-hike price to the refresh, but now I am really guessing that is not going to be a possibility.

I paid cash for my Quad R1S. I think right now I will be leasing a 2024 exact same config as my current 2023 R1S, and selling my current R1S. The lease deal is ridiculous, with a cash-on-cash benefit of probably $20k+ for selling my current R1S and leasing the same car. Hopefully the 2024 AC does not buzz and grind like something is about to explode.

 

[C12farmer]

My guess is the vouchers will never apply to the refreshed product because the refreshed product wont' appear in the shop until after Sept. 30.

Refreshed vehicles are supposed to be thousands cheaper to manufacture. I would think they want to sell as many of those as possible.

CFO mentioned they will be positive margin by end of 2024. This makes sense that they don't want any pre price hike sales in Q4. Timing all lines up with guidance to investors.

 

[olsonnet]

Since the vouchers only apply to shop purchases, I suspect they won't apply to the "refreshed" post-shutdown R1 model. If so, good move to make sure they can continue clearing existing inventory even after the shutdown.

I doubt they'll have enough inventory of pre-refresh vehicles to fulfill all those preorders for the next 6 months considering the shutdown is supposedly happening in just a few weeks. That isn't much time to stockpile old vehicles and the Shop doesn't have much available currently, especially for R1S.

If these cost-cutting efficiency changes that they've talked about are so great and will save them so much $, they should have no issue letting the remaining preorder holders use their vouchers for any "refreshed" model.

If anything this makes me think that the April shutdown is going to be less drastic when it comes to customer-facing improvements and instead they plan a more significant refresh for later in the year, with changes launching after that September cut-off.

There may be some small updates made in April but assuming pricing isn't changed, there will be no way to know for sure when you pick a vehicle from the R1 Shop if it has these updates or is a older build.

 

[evguy]

Refreshed vehicles are supposed to be thousands cheaper to manufacture. I would think they want to sell as many of those as possible.

CFO mentioned they will be positive margin by end of 2024. This makes sense that they don't want any pre price hike sales in Q4. Timing all lines up with guidance to investors.

That's true, but they also need to make sure they sell all the pre-shutdown inventory asap. I think the voucher is geared toward that.

 

[Chewy734]

I can get a DM R1S for $57k after $7500 tax rebate. This is insane. Probably cheaper than the R2 loaded.

 

[evguy]

I doubt they'll have enough inventory of pre-refresh vehicles to fulfill all those preorders for the next 6 months considering the shutdown is supposedly happening in just a few weeks. That isn't much time to stockpile old vehicles and the Shop doesn't have much available currently, especially for R1S.

If these cost-cutting efficiency changes that they've talked about are so great and will save them so much $, they should have no issue letting the remaining preorder holders use their vouchers for any "refreshed" model.

If anything this makes me think that the April shutdown is going to be less drastic when it comes to customer-facing improvements and instead they plan a more significant refresh for later in the year, with changes launching after that September cut-off.

True, I may be overestimating the inventory on hand.

 

[gultin]

Anyone knows why QM lease prices are lower than DM, even though the QM purchase prices are higher in the shop?

 

[DadOf4Girls]

So I just confirmed our R1S with pre-March pricing last week. No contact from my guide or anyone else at Rivian in the last week, including being left off the 20% voucher email. I've emailed my guide but wondering if I'll be able to take advantage since it doesn't seem anything is imminent in terms of taking possession.

Anyone else in the same boat who can give me some hope (or crush my dreams)?

 

[Dark-Fx]

Anyone knows why QM lease prices are lower than DM, even though the QM purchase prices are higher in the shop?

Higher residual pricing.

 

[MidnightRivian]

So I just confirmed our R1S with pre-March pricing last week. No contact from my guide or anyone else at Rivian in the last week, including being left off the 20% voucher email. I've emailed my guide but wondering if I'll be able to take advantage since it doesn't seem anything is imminent in terms of taking possession.

Anyone else in the same boat who can give me some hope (or crush my dreams)?

Things get tricky once you confirm your reservation and lock in the $1000 non-refundable deposit.

Did you pick something from the shop or just confirm your build preferences?

what configuration did you confirm?

 

[Yossarian]

Anyone knows why QM lease prices are lower than DM, even though the QM purchase prices are higher in the shop?

Higher residual value?

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