Rivian R1S SUV and R1T Pick-up thread
03-02-22 | 02:28 AM
#166
Reading the forums it sounds like the initial Cybertruck pricing got Rivian to drop the price of their products to be competitive with it, but with the CT delays and the F150, Silverado, and Hummer EVs priced to 100K on the high end, they figured they could get away with an increase despite not offering an actual full sized pick up
03-03-22 | 07:31 AM
#168
They're walking it back
Hello Everyone,
Earlier this week, we announced pricing increases that broke the trust we have worked to build with you. Since originally setting our pricing structure, and most especially in recent months, a lot has changed. The costs of the components and materials that go into building our vehicles have risen considerably. Everything from semiconductors to sheet metal to seats has become more expensive and with this we have seen average new vehicle pricing across the U.S. rise more than 30% since 2018. Given our build lead up times, we need to plan production costs not only for today, but also for the future.
As we worked to update pricing to reflect these cost increases, we wrongly decided to make these changes apply to all future deliveries, including pre-existing configured preorders. We failed to appreciate how you viewed your configuration as price locked, and we wrongly assumed the announced Dual-Motor and Standard battery pack would provide configurations that would deliver price points similar to your original configuration. While this was the logic, it was wrong and we broke your trust in Rivian.
We also didn’t manage communications well. We didn’t give you enough insight into what was driving these decisions. The most important aspect of what we are building is our relationship with all of you. As we demonstrated earlier this week, trust is hard to build and easy to break. In speaking with many of you over the last two days, I fully realize and acknowledge how upset many of you felt. I have made a lot of mistakes since starting Rivian more than 12 years ago, but this one has been the most painful. I am truly sorry and committed to rebuilding your trust.
One of the things we talk about a lot internally is that we will make mistakes – it’s part of building something complex. The key is to learn from them and address them when they are made. It is how we grow. We made a mistake in how we approached our pricing changes, and what is important now is that we fix it.
For anyone with a Rivian preorder as of the March 1 pricing announcement, your original configured price will be honored. If you canceled your preorder on or after March 1 and would like to reinstate it, we will restore your original configuration, pricing and delivery timing. Our team will be sending an email in the next few days with more details.
Regarding our updated pricing for future preorders, the introduction of our Dual-Motor configuration and Standard battery pack has been designed to enable us to maintain lower starting prices while adjusting the pricing of the Quad-Motor and larger battery packs to reflect rising costs. Building a durable business is core to the continued impact we can deliver as a company. We are focused on building a brand and products that will continue to scale to different vehicle sizes, use cases, price points and markets – this growth will only be possible with your support and continued feedback.
Thank you for the personal notes and discussions I had with so many of you. Your feedback makes us better.
RJ
Earlier this week, we announced pricing increases that broke the trust we have worked to build with you. Since originally setting our pricing structure, and most especially in recent months, a lot has changed. The costs of the components and materials that go into building our vehicles have risen considerably. Everything from semiconductors to sheet metal to seats has become more expensive and with this we have seen average new vehicle pricing across the U.S. rise more than 30% since 2018. Given our build lead up times, we need to plan production costs not only for today, but also for the future.
As we worked to update pricing to reflect these cost increases, we wrongly decided to make these changes apply to all future deliveries, including pre-existing configured preorders. We failed to appreciate how you viewed your configuration as price locked, and we wrongly assumed the announced Dual-Motor and Standard battery pack would provide configurations that would deliver price points similar to your original configuration. While this was the logic, it was wrong and we broke your trust in Rivian.
We also didn’t manage communications well. We didn’t give you enough insight into what was driving these decisions. The most important aspect of what we are building is our relationship with all of you. As we demonstrated earlier this week, trust is hard to build and easy to break. In speaking with many of you over the last two days, I fully realize and acknowledge how upset many of you felt. I have made a lot of mistakes since starting Rivian more than 12 years ago, but this one has been the most painful. I am truly sorry and committed to rebuilding your trust.
One of the things we talk about a lot internally is that we will make mistakes – it’s part of building something complex. The key is to learn from them and address them when they are made. It is how we grow. We made a mistake in how we approached our pricing changes, and what is important now is that we fix it.
For anyone with a Rivian preorder as of the March 1 pricing announcement, your original configured price will be honored. If you canceled your preorder on or after March 1 and would like to reinstate it, we will restore your original configuration, pricing and delivery timing. Our team will be sending an email in the next few days with more details.
Regarding our updated pricing for future preorders, the introduction of our Dual-Motor configuration and Standard battery pack has been designed to enable us to maintain lower starting prices while adjusting the pricing of the Quad-Motor and larger battery packs to reflect rising costs. Building a durable business is core to the continued impact we can deliver as a company. We are focused on building a brand and products that will continue to scale to different vehicle sizes, use cases, price points and markets – this growth will only be possible with your support and continued feedback.
Thank you for the personal notes and discussions I had with so many of you. Your feedback makes us better.
RJ
03-03-22 | 09:32 AM
#171
Lead Lap
Joined: Apr 2002
Posts: 4,891
Likes: 12
From: Virginia
Was glad to see the email this morning. But part of me can't help but think that this is the tip of an iceberg. The initial move indicates a lot of insular thinking and processes, this is the just the only one that was able to make it to the outside. Not a huge vote of confidence to what else is going on behind those closed doors.
Our R1S reservation will stand for now, let's see what else the roller coaster has in the year ahead.
Our R1S reservation will stand for now, let's see what else the roller coaster has in the year ahead.
03-03-22 | 01:50 PM
#172
Lexus Fanatic
Joined: Sep 2010
Posts: 21,062
Likes: 3,170
From: Alberta
03-03-22 | 02:19 PM
#173
Lexus Champion
Joined: Oct 2019
Posts: 12,193
Likes: 1,277
From: Ohio
Hey I hope it's genius since I am in 40k@IPO price right now, I am hoping in 5 years it's at least to 100 or so from contracts. I don't care too much about the customer sales, I just want amazon to buy their stuff and possibly absorb them.
03-03-22 | 02:21 PM
#174
they were probably horrified at the cancelations and decided to eat crow (and the costs).
probably the right thing to do. if they can actually deliver a lot of those reservations, they can always issue more stock to raise money.
probably the right thing to do. if they can actually deliver a lot of those reservations, they can always issue more stock to raise money.
03-03-22 | 02:52 PM
#175
Lexus Fanatic
Joined: Sep 2010
Posts: 21,062
Likes: 3,170
From: Alberta
IPO was ~$80 IIRC? I can see the stock being $120 sometime in July or August if recent trends are any indicator. Just be patient, I held TSLA for quite a while in the red never lost faith (blatant lie).
03-03-22 | 02:57 PM
#176
Pole Position
Joined: May 2010
Posts: 2,651
Likes: 758
From: SF Bay Area, CA
03-03-22 | 03:04 PM
#177
Lexus Fanatic
Joined: Sep 2010
Posts: 21,062
Likes: 3,170
From: Alberta
The current markets are highly volatile to put it mildly I have never seen it like this. Be careful people.
Still don't know if I like the look and vibe of this truck but it's unique and not overly styled, and no hood line jacked 20 feet in the air for no good reason.
Still don't know if I like the look and vibe of this truck but it's unique and not overly styled, and no hood line jacked 20 feet in the air for no good reason.
03-04-22 | 01:09 AM
#178
Lexus Champion
Joined: Oct 2019
Posts: 12,193
Likes: 1,277
From: Ohio
The actual product itself has no appeal for me but I don't really care about that aspect lol!
03-04-22 | 05:53 AM
#179
Intermediate
Joined: Apr 2014
Posts: 345
Likes: 24
From: PA
03-04-22 | 09:03 AM
#180
Lexus Fanatic
Joined: Sep 2010
Posts: 21,062
Likes: 3,170
From: Alberta
I panic sold this morning @$51.00 didn't like the vibe of the market not a stock I ever planned on holding long term anyway. This current market is completely bonkers.