Featured Rivian Pricing Targets Loaded F-150, Denali, Suburban, Land Rover Discovery

Discussion in 'Ordering, Pricing, Delivery' started by Administrator, Feb 22, 2019.

  1. Administrator

    Administrator Administrator

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    Rivian has previously announced that the R1T pickup will have a starting price of $69,000 and the R1S SUV will start at $72,500. But, these are the base models with smaller battery packs, and probably won't be available upon launch (pricier, longer range models will likely be the first ones delivered).

    In a recent interview by greentechmedia with CEO RJ Scaringe, he had this to say regarding pricing:

    GTM: Do you foresee price being a speed bump for the company?

    Scaringe: I think that may seem high, but we have to take the context of really two things. First, we’ve strategically positioned ourselves to go after the aspirational side of this market. It’s really important to make that note; we’re not trying to compete with a $25,000 or $30,000 truck or SUV. This is a very high-performance [vehicle] and very technically advanced in terms of self-driving, in terms of connectivity architecture, in terms of battery size. The segment is going after the people who are spending $70,000 or $80,000 on a GMC Denali or a Chevy Suburban or a Land Rover Discovery or a fully loaded Ford F150.

    So we’ve intentionally made sure that we’ve architected the vehicle for that premium positioning. If you come into the bottom of the markets, it’s very, very hard to push new technology.

    JP: Have you announced pricing for the 400-mile range truck and SUV?

    RS: We haven't yet. But we will have a version of the big-range vehicle that's sub-$90,000.

    Scaringe's remarks signals that most buyers should expect to pay between $70-80,000 for their Rivian, and the priciest (longest range) model will have a version that costs under $90,000.
     
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  2. A Hawk

    A Hawk Active Member

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    At that price range a heavily optioned / long range R1S will also compete against the Tesla Model X which start at $88k.
     
  3. Ricky35

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    Yea but keep in mind that a heavily optioned / long range Model X runs $130-140k!

    Also, the federal tax credit for Teslas have already been cut in half (to $3,750) for the first six months of 2019, and will be halved again to $1,875 for the second half of 2019. Meanwhile Rivian will enjoy the full tax credit. That means the price for the R1S will be $65k after the federal tax rebate and the R1T will be $61.5k after the rebate.

    So really we're talking about a base model price of $65k for the R1S versus $78k for a Model X (if you bought one with current tax credits). That's also a significant difference!
     
  4. RefugeEV

    RefugeEV Active Member

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    Seems they're taking Tesla's approach of coming to market with more expensive models first and will then introduce lesser range models at a lower price range. I wonder if they're successful with their trucks, they'll eventually move into other segments like sedans and crossovers at a lower price point than the R1T and R1S.
     
  5. Revelation

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    That is already planned.
     
  6. RockDaphne98296

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    Bring it! I will be replacing my PHEV with the R1S, but we would also like to have all EVs in the future, a smaller crossover as a companion vehicle would be great!
     
  7. Katsudon

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    So I guess the recently spied Rally vehicle will be Rivian's "crossover" model?

    What about the traditional 4 door sedan - have they said anything about entering that segment?
     
  8. Revelation

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    We don't know what the "Rally Car (R1R)" is going to be just yet. RJ has only made mention of other segments that they are looking at with stuff they have in the works. They could be very early design phase or further along; we don't know.

    If Rivian stays with the "Adventure Electric Vehicle" theme then I see them coming out with something along the lines of the Subaru brand of vehicles. That is entirely speculation on my part; it does make sense that they go that route.
     
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  9. Katsudon

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    That'd make Rivian more of a niche company than Tesla, especially if their models are all priced in the luxury segment. But also a smart move, at least at the outset, since the Adventure EV space as you put it, is currently unoccupied and it appears Rivian will be the first to enter that market. :like:
     
  10. Revelation

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    That is possible, though I think a tad differently. Just because they have a "culture" doesn't mean that is necessarily a niche market. For instance Jeep has a "culture" similar to what Rivian is striving for, in my opinion, yet even soccer moms that never go off-roading buy vehicles in the Jeep lineup.

    The first EV company that can get a good, long-range EV (300-400 miles) in the sub $20k segment is going to "win." Whether Rivian sees themselves targeting that market segment one day or not is up to them. Today's technology, the cost of it precludes these type of vehicles in the low priced categories from going full EV with 300+ miles range and all of the self driving and other tech out that "we" come to expect with EVs. Granted I have been spoiled by my Model 3 and I expect all EVs to have similar tech, large displays, over the air updates, autonomous driving, etc....

    Newer tech always comes out with higher-end vehicles first and as the cost of the technology comes down it too enters into lower end vehicles. As Rivian, or any manufacturer for that matter, further refines their tech to include batteries, the price will come down in all of the models. There may still be a high-end Rivian that costs $100k+ while they, one day, can cater to the sub $20k market.

    Ultimately if Rivian just focuses on creating a brand and producing an amazing product at a price point that the general public can stomach that still allows Rivian to make a profit then nothing else matters. To me creating a brand and an amazing product are job one, which they are off to a great start. After that it's all down-hill so to speak.
     
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  11. GreenMonster

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    Totally agree with this. Creating a brand and culture is key for a startup IMO. Auto manufacturing is already a tough business, and even more so for new startup manufacturers. Just look at Tesla and how long it's taken them to have a single quarter of profit. If you don't have a culture and brand loyalty it's going to be tough to get through the potential early model years with possible product teething and production issues. Rivian has done great so far. The buzz on the internet is rampant right now with the talk about Amazon coming on board and the recent auxiliary battery pack patent.

    As for pricing I think the $70-90k range is a good one to enter the market at. Profit per vehicle is going to be higher at this level and segment (truck/SUV) than if they tried to come in at a lower price level and different segment (sedan/sports car). And profit (cash) is king for a startup. Once they've got their finances in order then they can move into other less profitable segments and price points to cover a wider demographic of buyers.

    I do wonder how long it'll take until we see sub $20k EV market though. Tesla seems to be struggling bringing out the lowest priced $35k base Model 3.
     
  12. Hydro

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    I'd love to see Rivian come out with a vehicle at a more midrange price like the Model 3, but from RJ's comments it doesn't sound like he is interested in entering that space at all. Even with economies of scale and Tesla's success I think I read they lose about $5K on each Model 3 sold. For a startup like Rivian that would be a death sentence. For now it looks like us early adopters will be funding the company at a premium and hopefully with success they can offer lower priced models. I know I would be interested in a Model 3 competitor from Rivian.
     
  13. ACDC

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    So true guys. When you have brand loyalty owners stick with you through thick and thin. Jeep and Tesla were mentioned and they're great examples. Both brands have had well known quality and reliability issues but they're both enjoying record sales regardless.
     
  14. Ricky35

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    Yea but think of how many more units those brands would sell if they were actually reliable!
     
  15. Revelation

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    Maybe I missed them but I haven't seen any comments from RJ that they will not enter a lower-cost market; they simply are not doing it on day one. Tesla does not lose $5k per every Model 3 sold. Anyone who told you that is flat out lying. Tesla is averaging 17% profit on Model 3's and 20%+ profit on S and X. That is straight from Tesla.
     

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