My Rivian 'First Mile' Drive Review
- Thread starter DomB
- Start date
MarzNC
Well-known member
- Joined
- Jul 18, 2020
Found examples of the specific prices increases. Doesn't make too much sense to increase the price on colors. Might as well just tell people they can't get that color for any price if it's getting too hard to make it.
electrek.co
Rivian buyers are canceling at alarming rates after price increases
A poll shows that Rivian buyers are canceling their reservations at an alarming rate after significant price increases for the...
electrek.co
DomB
Well-known member
- Joined
- Aug 25, 2020
So, Rivian seems to have done the right thing and retracted the increases if you had an order in by March 1. But, has it done devastating damage to the brand? I have the same price I had 3 years ago, but I am closer to ever to cancelling. Rivian also apparently lets you transfer your order, so now there could be a 10-15k market for older order holders . . . .
Letter by email that I and all pre-order holders got today (bold in original):
* * *
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
Letter by email that I and all pre-order holders got today (bold in original):
* * *
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
MarzNC
Well-known member
- Joined
- Jul 18, 2020
What a soap opera! Interesting about re-instating cancelled pre-orders.
Transferring a pre-order . . . sounds like an opening for a bit of a mess. Wonder what the market will be for a R1T delivered before June 2022 that is put up for sale a month or two later? Meaning after some summer fun. Will it hold value?
ScottySkis
Well-known member
- Joined
- Jul 23, 2020
I would cancelled
My experience is better for ski hills then auto stuff lol
My experience is better for ski hills then auto stuff lol
Brownski
Well-known member
- Joined
- Jul 19, 2020
Wonder how many cancellations they got
DomB
Well-known member
- Joined
- Aug 25, 2020
I don't know, but I have heard thousands (before Rivian reversed).
My current game plan: keep the reservation and see what happens in the next few months, with a backup Highlander hybrid plan. Like most, I have gotten the 'old' price.
I am a May-June delivery, and Rivian has apparently called some who cancelled and did not uncancel. I suspect it is because they have an earnings call on 3/10. I still have the stock and will hold - this was my first (and now only) foray into an individual stock. Goes to show you I am not made for individual investing! I still believe in Rivian to some degree but view them more like an Amazon or legacy maker than some unique brand.
The timing will let me see what happens a bit.
Back up plan: I found a few dealers in 'upstate' that will sell at MSRP. I'd want a hybrid highlander XLE because it is the only model I like that has smaller wheels (for more tire sidewall) for my limited offroading. I would get a 2 inch after market lift, less than 1k for parts and labor, and then save 30-40,000 in the process.
My current game plan: keep the reservation and see what happens in the next few months, with a backup Highlander hybrid plan. Like most, I have gotten the 'old' price.
I am a May-June delivery, and Rivian has apparently called some who cancelled and did not uncancel. I suspect it is because they have an earnings call on 3/10. I still have the stock and will hold - this was my first (and now only) foray into an individual stock. Goes to show you I am not made for individual investing! I still believe in Rivian to some degree but view them more like an Amazon or legacy maker than some unique brand.
The timing will let me see what happens a bit.
Back up plan: I found a few dealers in 'upstate' that will sell at MSRP. I'd want a hybrid highlander XLE because it is the only model I like that has smaller wheels (for more tire sidewall) for my limited offroading. I would get a 2 inch after market lift, less than 1k for parts and labor, and then save 30-40,000 in the process.
