Rivian Prioritizing R1T Over R1S in Order to Hit 25k This Year and to Fill Post Mar 2022 R1T Orders Next Year?

[crashmtb]

I have heard a few times that there are many more R1S reservations than R1T. This was confirmed by Tony C. This is apparent when we see that people who ordered R1Ts in 2022 have received their trucks already or are expected to take delivery within a year after preorder. I think it’s speculation why they chose to build the R1T when they had many more S reservations; my guess would be that they wanted to be first to market with an electric truck whereas there were plenty of other electric “SUVs” in the market already. The headlines were more eye-catching ahead of the IPO with the truck.

It also seemed weird to me that if there are over 90,000 reservations, and if it was more evenly split between the two, then how can someone who ordered an R1T in late 2021 or 2022 have already taken delivery if there were over 45,000 people ahead of them and they have only built 14,000 trucks. Math doesn’t add up. So it makes more sense that there are much less R1Ts and that’s why the build out for legacy reservation holders is so long. I’m in So. Cal with a September 2021 preorder for an R1S and I have a Q4 2023 delivery window. People with R1Ts with my timeframe have already taken delivery or will be taking delivery soon.

R1T seems to be less complex to build. Closures are simpler, less interior pieces, etc. they also have way more process maturity in assembling R1T, having done probably 15000+ by now, including validation builds. Compare to probably a thousand R1S.

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[NashvilleR1S]

You very well might be onto something. I’m a 1/22 preorder for R1T and got what I feel like is great news. feb-march 2023. It does seem like R1S and max pack people are the least happy.

you have the same window as my 2020 R1S LE Order.

 

[av8or]

you have the same window as my 2020 R1S LE Order.

I changed from an R1S to a T in early October. Wonder what my window would have been

 

[zipzag]

I doubt very much that Rivian is choosing build order due to market conditions. I think they would like to build by order date. One reason they may not be building by order date is lack of validation on the R1S. They simply can't build 10K R!S and have another tonneau-gate. After the R1T problems senior management is likely much more skeptical when project managers declare a vehicle or feature ready for production.

 

[milliemc]

You very well might be onto something. I’m a 1/22 preorder for R1T and got what I feel like is great news. feb-march 2023. It does seem like R1S and max pack people are the least happy.

When did you originally reserve? We reserved this July and I am wondering how many years it will be for us.

 

[av8or]

When did you originally reserve? We reserved this July and I am wondering how many years it will be for us.

1/25/22 ordered a R1T then switched it to a S last summer. When the email about delivery window based on 10/16 configuration came out I changed back to a T without a tonneau cover thinking It might be earlier. Maybe I guessed right.

 

[COdogman]

I’m sure it’s frustrating for anyone waiting for an S to learn their order is delayed. If the S goes through the same arc as the T did, there will be unexpected supply chain issues, other delays along the way.

I guess the positives might be that Rivian found solutions to some early T issues like OC interior wood, wheel shortages. It’s possible they could beat those estimates as they continue to refine their process.

Also, as others have noted the T is now rolling out VIN 14xxx while the S just recently started being delivered. So they naturally would be further down that list of orders. I hope they get caught up and make a bunch of new S owners very happy!

 

[Ladiver]

I think they are focusing on the truck while they have that market share. Ford is sold out of Lightnings, Chevy is still in development, GMC only just announced, Dodge is (?), and Elon is figuring out how to add rockets to the Cybertruck for space travel. In reality, I think an EV Tacoma will be their biggest challenger.

it makes sense for Rivian to flood as many trucks into the market as possible. There is still no other electric SUV that dethrones the R1S, so Rivian has some time (looks like they think they are safe until 2025).

 

[Prime]

Well add to the fact that all trucks delivered going forward will have no power tonneau and will be delivered with just a open bed (manual version will be shipped separately when ready in 2023) so the build just got even simpler for them. Pumping them out to hit their 25k guidance became more achievable as well without the additional rumored shift that has not been initiated yet.

 

[Longhorngirl]

I think there's a general frustration for those of us who ordered R1S 3 to 4 years ago. It became apparent that they were going to prioritize R1T deliveries to ensure their guidance for 25k vehicles came true and after all the delays it was disappointing for us.
I fully disagree with the thought that they want to deliver more vehicles that were ordered post-Mar 2022. At the IPO there were 60000+ pre-orders. On Jan 1 2023 they'll have delivered under 30000 of those. They are indeed delivering the R1T at a good pace but they still have a lot of pre-orders to chew through.
I thought it was theorized on this site a few years ago that the R1T would generate about twice the number of sales as the R1S. They're a decent ways off of getting to those Mar 2022 pre-orders

Based on the responses in the thread below, there are R1T preorder holders post March 1 that have been told they should expect delivery next year.

https://www.rivianforums.com/forum/...with-this-tableau-dashboard.9692/#post-229661

 

[mkg3]

I think the S is still facing parts shortages for the tailgates.

Respectfully disagree to this statement. Almost all car makers are reporting significant improvement in parts/suppler shortages.

R1T simply is more profitable than R1S. There are less parts and labor that goes into the truck than SUV.

Rivian is making more R1Ts and EDVs than R1S because they need to create better gross margin and replenish cash reserve they need for GA plant.

 

[crashmtb]

Based on the responses in the thread below, there are R1T preorder holders post March 1 that have been told they should expect delivery next year.

https://www.rivianforums.com/forum/...with-this-tableau-dashboard.9692/#post-229661

Prioritize the later, higher margin orders, push out the earlier ones and hope they give up.
Excellent strategy from a stock price and profitability standpoint. Bad for customer goodwill.

Not great for customer retention to penalize early customers.

 

[Ladiver]

Prioritize the later, higher margin orders, push out the earlier ones and hope they give up.
Excellent strategy from a stock price and profitability standpoint. Bad for customer goodwill.

Not great for customer retention to penalize early customers.

There is some logic to this, but not a great financial reasoning. The longer they hold the price and don’t deliver the vehicle, the more expensive it will be to build. Meaning their profit will be even lower in the future. The only way this works out is inflation plummets and labor costs drop. I don’t see that happening in the next year or two.

 

[crashmtb]

There is some logic to this, but not a great financial reasoning. The longer they hold the price and don’t deliver the vehicle, the more expensive it will be to build. Meaning their profit will be even lower in the future. The only way this works out is inflation plummets and labor costs drop. I don’t see that happening in the next year or two.

It’s a great way to free up capacity and make more money

 

[paariv]

The “delay low price orders” strategy only works if they get us to cancel. Profitability doesn’t matter much to the market or Rivian now. It’s all about scaling and production ramp; everyone expects Rivian to lose lots of money each quarter.

So from a markets standpoint it’s better to deliver the low price orders now, while profitability isn’t that important, than to deliver them later when profitability will matter more. Best is to get us to cancel, assuming that they won’t run out of orders any time soon.

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