Rivian recently announced several significant price increases for its R1T electric adventure pickup truck and R1S electric adventure SUV and accompanying add-ons which has caused so much stir in Rivian communities all over the internet. These price hikes have seen the cost of the quad moto R1T increase by about 20% or $12000 for the bare bones 300-mile trim. Rivian claims the increase in prices was motivated by inflation and an increase in component prices.
The previously priced $67500 R1T variant with the standard pack, the quad motor powertrain is now $79500 and the 400-mile max battery pack has gone up to 16000 from $10000. The 300-mile large battery pack is now $6000 from no additional cost.
The chip shortage crisis
Covid has been the major talk for the last three years. It has led not just to so much death and chaos, but its ripple effects are being felt in basically every industry or sector in the world, which has led to major price and availability issues for components and products.
Take the semiconductor sector for example. Laptop manufacturers, car manufacturers, and basically everything that uses a microchip have held off production for at least a while due to these shortages.
Scalpers have also taken advantage of these situations, using scrips to buy off every available piece of NVidia GPU for example, reselling them on sites like Amazon and eBay for double the price.
Rivian is unable to build its cars because of the chip shortage crisis
The auto industry has not been left out. Many companies like Rivian and ford could not fulfill orders because of supply chain issues and the available supply has gone up in price.
I think it’s pretty normal to see price hikes for commodities, but not to the scale Rivian has done.
All Rivian items and their new prices
Pretty much everything in the Rivian configurator has gone up in price. However, the cheapest and lowest specked version of the R1T still costs $67500 but the specs have dropped down to a dual-motor variant with 260 miles of range.
- The previously priced $67500 R1T variant with the standard pack, quad motor powertrain is now $79500
- The 400-mile max battery pack has gone up to 16000 from $10000 and the 300-mile large battery pack is now $6000 from no additional cost.
- Two Rivian colors were previously offered at no extra cost, the LA silver and Glacier white. Now only one color remains as standard and the Glacier white has gone to a paid color at $1750. Some paint options also saw price increases like the El Cap going from $1500 to $2500.
- The three-person tent price with two cargo cross bars has been raised from $2,650 to $3100.
- Pricing for the camp kitchen has gone up to $6750 from $5000. I mean, the camping kitchen being five thousand dollars was already very expensive. The fact that it’s closer to seven thousand dollars is just upsetting. That is a pretty big jump for some cookware and a cooktop.
- The off-road upgrade is gone… you get the tow hooks included and the underbody shield is now $2000 which was what the upgrade originally was.
- The Full-sized spare went from $800 to $900
- The Tonneau cover is now optional, with the powered version costing $3000 and the manual option upto $1800. it’s also selectable option as an upgrade for the Explore package
- The Wall charger went from $500 to $750
- Cargo Crossbars increase $450 to $500
- Ocean Coast interior is now $2000 extra
These are mostly the price hikes for the R1T and the R1S where applicable.
On average the typical R1T most people were ordering, the adventure package got 17% more expensive and with the r1s we’re seeing price hikes closer to 20%. People woke up to see their preorder reservation jump by $20000.
The Roll back for preorder owners
After much backlash by the Rivian community, with cancellations amounting to more than half of all preorders, R J Scaringe sent out an email and reversed the price changes for all preorders as of before the first price change.
The New Dual Motor R1T
The whole thing has overshadowed the good news of a cheaper r1t variant. Which we hoped would have been below like $55000. It comes with a dual motor and 260 miles as standard with optional upgrades as with the other variants of the car.
The dual moto R1 variants will begin deliveries in 2024. We all know Rivian never keeps with delivery schedules so that might be the end of 2024 or 2025.
Tesla Price increase compared
A series of price hikes saw the base price of the Model 3 increase by $8,000 between February and November of 2021. It’s not a $12000 price increase but it’s also about a 17% price jump.
however, it’s been a gentle but steady price increase throughout the year which makes it an easier pill to swallow. It doesn’t make one think, tesla is in financial trouble and wants more money?
Will People turn to other EVs?
Now, will this make people turn towards the few other electric trucks in the market? That remains to be seen.
The Tesla Cybertruck
But the cybertruck is not going to be immune to these types of price jumps, especially with the insane demand they’re already seeing with the trucks. But I think Tesla is going to implement any price increases in a smarter way.
Tesla eliminated the base Model Y Standard Range from that model’s lineup and, with other price hikes, effectively increased the base price by $17,000 to just over $60,000.
We may see Tesla do only the quad motor cyber truck and it’s probably going to cost like $90,000 and that might be the only trim they have available for several years.
Moreover, I think the prices on the Cybertruck at its launch even are so out of date now and are no longer relevant at all.
The Ford F150 lightening
Others might turn to the Ford F150 and think, oh okay, this might be a little bit better, but again if you want the 300-mile range F150 lightning that’s still well over 70,000 dollars so as different as the announced pricing sounded for all these different pickup trucks.
It’s funny looking back. People thought the R1 Vehicles were expensive back then a few years ago especially when Tesla announced a rival electric truck starting at 39000 dollars. However, I think its time for us to see that that is just the reality of things especially when it comes to electric trucks. It’s an expensive piece of tech to build.