Rivian temporarily pausing R1 configurator due to production line shutdown

[Supratachophobia]

IMO RJ reiterates my points. They are singularly focused on being profitable by Q4 of '24 (prior to R2 delivery). To do so they need to cut $30k (or more) out of the R1 costs. RJ blames that on "material costs". I have a hard time buying that the raw materials have $30k of wiggle room. I do think they were over paying for materials during the pandemic. A un-proven start up in a starved market place. In essence they were paying gold plated toilet prices and getting porta-potties. My guess there remains some of the supplier gouging due to the current stock price and dwindling dollars in the bank. But I continue to believe they need to be removing the plush features (Ala Meridian audio) (I understand that was removed months ago - but I can't see it coming back). Or they need to bring it back and double the price of the vehicle. I think that's what's going on. The current platform appears to be un-sustainable. Friday's announcement of reservation holders need to buy what's in inventory or risk applying their deposit to an entirely different R1 vehicle with different features, different finishes and different pricing. While many of those folks are pissed - I get it. But looking at the math - they should buy from inventory. They'll be getting $30k more bang for their purchase price. Waiting isn't going to result in Rivian giving away the farm any longer.

Again, backup. They aren't losing $30k per car. Their total company expenses when divided into the quantity of cars produced, is $30k per vehicle. But an R1 doesn't have $110k of parts and gets sold for $80k.

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[DRJ564]

Two weeks ago I did a demo drive of the R1S and the guide I did the demo with hinted about a 'platform change' to the R1S, not the T apparently. And he mentioned that they had a camouflage R1S going around with this new platform and they had it in their service centre a short while ago for testing. He also said they are 'excited' about this new platform.

He would not divulge any more than that, but he hinted at suspension and battery. Or atleast those are some of the things I saw a smile from him. Beyond this he would not wink/smile or even talk about it.

The platform change is called the R2. Platform is a HUGE word.

 

[Rividiculous]

Ah, max pack. Well good luck with everything! Hope it works out.

Also, I just did a quick check on the shop - there is a Forest Green 20” PDM Max in the shop. Have you tried calling the guide and asking if the wheels can be swapped for you? I hear (elsewhere on this forum) talk of color and wheel upgrade price write offs for shop cars - maybe if that will work out for you

Thank you. I will see what more I learn. If they say no Refreshed R1s for us preorder holders, then flexibility on wheels and color may be the key. (Personally, I’m okay with any color but my wife is pretty set on El Cap and a big no on green, at least today. 🫤) Crossing my fingers and hoping for something workable.

Right now, I just need good info regarding if they will allow us refreshed vehicles and, either way, some help getting a good enough match.

To be honest, I think Rivian could make more off of me if I can get a refreshed R1S (beyond the better margin) as I’m willing to then pay more for a better battery, electrochromic roof, etc. But maybe I’m an outlier.

 

[archiboy]

But an R1 doesn't have $110k of parts and gets sold for $80k.

Valid Point. I do believe Sandy Monroe's analysis resulted in suggesting they DID have more invested than recoup'd in sales price for the launch vehicles. Not sure that issue is still in play. But, regardless, the burn rate needs to be addressed for them to succeed. If I recall RJ has reduced the 2024 target deliveries from 80k to 50k (same as 2023). Meaning the 2024 volume isn't gonna help with slowing the burn rate.

I think the refresh will offer some improvements (ie heat pump). But I still believe the underlaying (un-spoken) goal will be to find efficiencies and reduce costs. It'll be pitched as a better R1 vehicle, but in reality the quality and attention to detail may be higher for the existing product. There are only so many places that Rivian can cut costs.

For the record, I'm a day one reservation holder. I've got 35k+ miles on my 24 month old R1T. I want them figure this out and succeed. I'm looking forward to buying another one in the future.

 

[emoore]

Thank you. I will see what more I learn. If they say no Refreshed R1s for us preorder holders, then flexibility on wheels and color may be the key. (Personally, I’m okay with any color but my wife is pretty set on El Cap and a big no on green, at least today. 🫤) Crossing my fingers and hoping for something workable.

Right now, I just need good info regarding if they will allow us refreshed vehicles and, either way, some help getting a good enough match.

To be honest, I think Rivian could make more off of me if I can get a refreshed R1S (beyond the better margin) as I’m willing to then pay more for a better battery, electrochromic roof, etc. But maybe I’m an outlier.

I doubt you’ll be able to get a refreshed Rivian with the voucher. This is why they are issuing the vouchers, to tell people buy now or lose your preorder price hike.

 

[Singletracker]

I feel like Rivian has bent over backwards to guarantee pricing to the pre 3/22 reservation holders. Heck, that is now over two years ago. It’s probably past time for those people to shit or get off the pot. At some point, it’s just not feasible to keep taking losses on vehicles, just to satisfy those few who can’t or won‘t make the commitment. I dunno, to me, it just seems unreasonable to expect that window to stay open indefinitely.

 

[rraj2k81]

The platform change is called the R2. Platform is a HUGE word.

No it is not.
The R1 is not becoming the R2 because of a platform change. I think it's safe to say the cat is out of the bag about the R2.

Also read and contextualize the conversation I had with the guide.
The context of the conversation was in regards to the R1(S) and not about the R2.

 

[crashmtb]

I feel like Rivian has bent over backwards to guarantee pricing to the pre 3/22 reservation holders. Heck, that is now over two years ago. It’s probably past time for those people to shit or get off the pot. At some point, it’s just not feasible to keep taking losses on vehicles, just to satisfy those few who can’t or won‘t make the commitment. I dunno, to me, it just seems unreasonable to expect that window to stay open indefinitely.

If one is an “old” preorder holder who lives, say, anywhere in Canada that is not one of four cities (Vancouver, Calgary, Toronto, or Montreal), Rivian won’t fulfill that preorder yet.

I keep getting emails about shop access, leasing, etc. but none of it applies!

 

[Singletracker]

If one is an “old” preorder holder who lives, say, anywhere in Canada that is not one of four cities (Vancouver, Calgary, Toronto, or Montreal), Rivian won’t fulfill that preorder yet.

I keep getting emails about shop access, leasing, etc. but none of it applies!

Yours is probably not the usual case for delaying a purchase, and it sucks. I’m sorry you have been stuck in no man’s land, at least as far as your Rivian order goes. You’ve waited too long to not get some satisfaction. Hope it somehow works out for you.

 

[SDH]

I agree with much of the common sense so far on this thread. Yes, Rivian need to make the R1 platform profitable (or at least as close to break-even) and surely doing this means subbing out the frivolous stuff that went on the earlier models - ventilated seats, wood dash, camp speaker, powered frunk, Bosch QM etc.

Also give us more optionality on things like roof, suspension, seat coverings.

And good on them for making a decision on pre-March '22 holders.

 

[Zoidz]

No it is not.
The R1 is not becoming the R2 because of a platform change. I think it's safe to say the cat is out of the bag about the R2.

Also read and contextualize the conversation I had with the guide.
The context of the conversation was in regards to the R1(S) and not about the R2.

Over the past few years, statements made by guides and SC support staff have been very innacurate. WAG comes to mind in most instances. There are numerous posts here "a guide/SC person told me XYZZY" and it never came to be. Many Rivian employees told customers "CarPlay is coming s00n. RJ changed his mind". Based on the past, I'm skeptical about what you were told, except for one factor - Rivian could probably lower the price of an R1 by $4k - $8k if they downgraded the current air/active hydraulic suspension to a more traditional coilover suspension. That would immediately sell more R1 vehicles.

 

[FixieOne]

When did they start delivering in Ontario?
I'm not sure they are making LE anymore, I hope so for your sake.
unfortunately they have to have a cutoff at some point.

A 2k increase in 5.5years is extremely reasonable.
Mine was 104K, configured now it is 147K.
Hopefully there will be some concessions for eastern Canada.
When does/did the SC open there?

I locked in my R1T yesterday afternoon from the long list of models available. I was given a VIN and a delivery date of approximately 2 weeks. Yes not the same specs and loose out on the launch edition pricing but a very close compromise that I like better.
-apparently the SC opened in late January and a sales rep will be reaching out to me tomorrow hopefully.

 

[zipzag]

Generally, does anyone think prices will go up post refresh or no? Could be because of the “refresh” or just market conditions or whatever

I don't see how Rivian can afford the reduction in demand due to a significant price increase. They are demand constrained at current prices. There's no sign that auto loan rates will improve much any time soon.

It's likely that overall car/EV demand remains "meh" this year. The R1s are great but they are medium size $100K vehicles.

To me the voucher approach perhaps suggest some new options. But as someone who really wants a 240V inverter my belief may be wishful thinking.

Perhaps camp kitchen makes a glorious return

 

[zipzag]

I doubt you’ll be able to get a refreshed Rivian with the voucher. This is why they are issuing the vouchers, to tell people buy now or lose your preorder price hike.

They may not have changed to the voucher approach if they wanted to limit what can be purchased.

 

[Rividiculous]

I doubt you’ll be able to get a refreshed Rivian with the voucher. This is why they are issuing the vouchers, to tell people buy now or lose your preorder price hike.

That might be the case. If so, I do wish they would have simply said I would not be able to get a refreshed R1 with price protection when I repeatedly asked them exactly that question. Very frustrating for me personally but also growing pains for a new company, I suppose.

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