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Well, that didn't take long.

Rivian sent an email yesterday to all those that pre-ordered the truck and the suv announcing a 20% price increase.

Incredible.

"My" R1S build went from just under 82k to just over 100k. At 82k, it was competitive with a new Defender, which priced out about 78 and a Range Rover Sport, at about 83. At 100, all the value is gone, IMO. Frankly, I expected the price to rise over the 2 year delivery timetable, to maybe 90, but this 20% jump is just crazy. They have badly misjudged their potential buyers, IMO.

I'll be requesting my refund tomorrow. And eagerly awaiting what else comes down the pike. I really feel sorry for those folks that placed orders long ago and are about to take delivery over the next couple of months...they got hit with the increase too.

Can't see this playing well with their target customers.
 
The price of electric vehicles is coming down but they are still pricy when compared to the gasoline counterparts. I am surprised how low the prices are on the vehicles from some of the smaller manufacturers.
 
Yinzer Moto said:
The price of electric vehicles is coming down but they are still pricy when compared to the gasoline counterparts. I am surprised how low the prices are on the vehicles from some of the smaller manufacturers.
Click to expand...

They were competitive, now not so much. This is the email I sent them.

Please cancel my pre-order and refund my $1000 deposit.

A question you all might ask yourselves: What would REI do? I pose this question because I suspect their customers are YOUR customers; affluent, outdoorsy, looking for good quality, service and value, and willing to try new things.

What would REI do? Certainly not raise prices by 20% in one fell swoop, with no consideration to those already standing in line. This price increase takes out all the value of your vehicle. A Defender speced similarly is 78k, a Range Rover Sport, 83k. "My" R1S build went from 82k to over 100k, with more to come I expect. You have badly misjudged your potential customers and are not acting in concert with the brand "values" you purport to have.

I have no intention of investing $100,000 in a new company that treats its customers this way.

Please respond with how and when my deposit will be refunded.

Thank you
 
In the "isn't it ironic" category, Rivian announces a 20% price increase at the same time Jeep announces its electrification plan.

www.caranddriver.com

Jeep’s First EV Coming in 2023; Ram Says Its EV Pickup Will Beat All Competitors

Stellantis announced a Ram ProMaster EV coming later in 2023, with the electric Ram 1500 pickup due in 2024.
www.caranddriver.com www.caranddriver.com


ev-jeep-1646146612.png
 
Incredible. I literally just got another message from Rivian that they are now honoring the prices for those with pre-orders and will reinstate anyone who cancelled. Hmmm. If this is really a price lock on a 2 year out delivery, that could be worthwhile.
 
kickstandsup said:
Incredible. I literally just got another message from Rivian that they are now honoring the prices for those with pre-orders and will reinstate anyone who cancelled. Hmmm. If this is really a price lock on a 2 year out delivery, that could be worthwhile.
Click to expand...

I would be concerned with buying into a small manufacturer. It is a cool truck. What if they go belly up 6 months after you get your truck? That is a risk we take with all manufacturers but with Ford and Chevy, it is less likely. We can still get parts for a GM owned Pontiac.
 
kickstandsup said:
Incredible. I literally just got another message from Rivian that they are now honoring the prices for those with pre-orders and will reinstate anyone who cancelled. Hmmm. If this is really a price lock on a 2 year out delivery, that could be worthwhile.
Click to expand...
I suspect the backlash from their "in line" customers was worse than expected and had to do some back peddling. After all, those customer who put a deposit down are simply an investor in the company and I am sure they lost a lot of capital when the refunds started.
 
Here's the full email:

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
 
So, if this really is a price lock on a 2 year out delivery, that could be worthwhile. The deposit is still refundable, and it would seem likely I could sell it for a significant profit if I didn't like it.

Assuming, of course, that they actually make them.

Think I'll let it ride...
 
Yinzer Moto said:
I would be concerned with buying into a small manufacturer. It is a cool truck. What if they go belly up 6 months after you get your truck? That is a risk we take with all manufacturers but with Ford and Chevy, it is less likely. We can still get parts for a GM owned Pontiac.
Click to expand...

Yup, that's a risk. I'm hoping that by my delivery date, their "footing" will be more apparent, or not. As I said earlier, this was always a hedge, so I'm going to let the deposit stand.

I expect over the next few years there will be many more players in this market and I'm looking forward to what comes out from the legacy automakers as well.
 
87warrior said:
I suspect the backlash from their "in line" customers was worse than expected and had to do some back peddling. After all, those customer who put a deposit down are simply an investor in the company and I am sure they lost a lot of capital when the refunds started.
Click to expand...
They supposedly have 70,000 orders x 1,000/order = $70 million. Online polls showed a 70% cancellation rate; if accurate, $49 million walked out the door, and quickly...
 
kickstandsup said:
In the "isn't it ironic" category, Rivian announces a 20% price increase at the same time Jeep announces its electrification plan.

www.caranddriver.com

Jeep’s First EV Coming in 2023; Ram Says Its EV Pickup Will Beat All Competitors

Stellantis announced a Ram ProMaster EV coming later in 2023, with the electric Ram 1500 pickup due in 2024.
www.caranddriver.com www.caranddriver.com


ev-jeep-1646146612.png
Click to expand...
I am not sure what that thing is, but sure as the hell isn't a Jeep!

This is the EV Jeep we need.....er want.
1646322591363.png

1646322562197.png

1646322576328.png


This was the first EV build I followed back in 2005-2006... A high school kid built it and it is still by far my favorite EV build to date. Unfortunately it looks like his website is now down. I had to use Wayback Machine to get these pics.
 
Yinzer Moto said:
The price of electric vehicles is coming down but they are still pricy when compared to the gasoline counterparts. I am surprised how low the prices are on the vehicles from some of the smaller manufacturers.
Click to expand...
What are the low prices you refer to?:ear
 
The EV advantage gets larger when the ICE vehicle gets lower and lower mileage...when I did my own comparisons of the 3 vehicles I mentioned above, Rivian, Defender and RR Sport, the Rivian was the clear winner...when it was (and hopefully now is again), 82k.

The trade off, of course, is dealing with charging and planning your trips around it. At home, the EV is more convenient b/c your house is the fueling station.

IIRC, early on, Tesla had the same issues as Rivian...price adjustments and delays. The Teslerati put up with it b/c they were the true early adopters and wanted that EV "at all costs" for the symbol.

I think now, most Rivian buyers are like me...it is (was) a competitively priced product, and I was willing to try the "EV experience." When they jacked the prices, out went the value. I don't "have to have" this vehicle; in fact, until I drive one, I don't know that I even want this vehicle.

The future though, is clearly electric, there's just no denying that at this point.
 
SandRdr said:
What are the low prices you refer to?:ear
Click to expand...

Low may not be the right word. 82k for a low production truck seems low. Ford sells more F150s than some entire companies sales figures. Dodge sold around 300k vehicles in 2020 and Ford has gotten close to a million per year in the F150 alone.
 
Yinzer Moto said:
Low may not be the right word. 82k for a low production truck seems low. Ford sells more F150s than some entire companies sales figures. Dodge sold around 300k vehicles in 2020 and Ford has gotten close to a million per year in the F150 alone.
Click to expand...

Exactly right. There's no doubt in my mind that the original Rivian price structure was unsustainable at low production. And that it was somewhat of a "deal" compared to the competition. Tesla's big SUV, the Model X, is 105k and nowhere near as off road capable as the Rivian, and IMO not remotely worth the price.

Rivian jacking the prices of the R1S is in keeping with Tesla's offering...but Tesla, at this point, is an established brand with a big charging network advantage. Rivian, right now, can't compete with that. No one really can. Will be interesting to see if Tesla opens it up to others, which is a persistent rumor.
 
Yinzer Moto said:
Low may not be the right word. 82k for a low production truck seems low. Ford sells more F150s than some entire companies sales figures. Dodge sold around 300k vehicles in 2020 and Ford has gotten close to a million per year in the F150 alone.
Click to expand...

Wow, 82k seems low:confused

Why do you think it's a good deal?
 
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