The price of Rivian's all-electric R1T pickup and R1S SUV has been raised by about 20% as the newly public automaker tries to adjust to inflationary pressure, increases in the cost of raw materials and parts as well as a lengthy chip shortage.
Rivian plans to introduce a new dual- motor version of the truck and SUV in 2024, according to the company. Rivian will be designing and manufacturing the new propulsion system, which is a reflection of CEO R.J. Scaringe's goal to vertically integrate the company. Customers were told via email about the change.
Rivian introduced the R1T and R1S as all-wheel drive electric vehicles with a quad- motor system that pumped up the power and Torque and helped the startup stand out. The base price of the quad-motor R1T and R1S was $70,000 until today. The base price of the R1T will go from $79,000 to $84,000.
Most of the customers who pre-ordered the truck or SUV will be affected by the price adjustments. Rivian said that customers who were in the final stages of completing their transaction will be locked into the lower price.
The rest will have to pay for it.
Jiten Behl, Rivian's chief growth officer, provided a lengthy statement explaining the move. The prices for the R1T and R1S models were established last year. According to the company, the average transaction price for a new car has risen 37% since then.
Like most manufacturers, Rivian is being confronted with inflationary pressure, increasing component costs, and unprecedented supply chain shortages and delays for parts.
This rise in cost and complexity due to these challenging circumstances necessitate an increase to the prices of the R1T and R1S models we offer today — prices which were originally set in 2018. This decision will allow us to continue to offer competitive products that maintain the high standard of quality, performance and capabilities that our customers expect and deserve from Rivian.
Along with the adjusted prices for our current offerings, we are also announcing Dual-Motor AWD and Standard battery pack options for R1T and R1S, which will provide a broader range of choices for customers as part of our expanding portfolio of options, upgrades and accessories.
The R1T and R1S will be dual- motor versions, Rivian said. The lower base price position will be taken over by these vehicles, which will be equipped with a propulsion system designed and manufactured by Rivian. The dual-motor AWD configuration and its 260-mile standard battery pack were open for pre-order.
The all-wheel drive functions of the R1T and R1S vehicles will still be available with some adjustments. The range will likely increase on the upside.
The R1T has 11,000-pound towing capacity and is powered by a quad motor. It has an EPA-rated range of 314 miles. The dual- motor will be capable of 600hp and 600lb-feet of Torque. Rivian isn't saying what its range will be, but it should be more than 320 miles.
The quad system uses a combination of Bosch and electronics, but this new system will be from the automaker. The electric motor will be placed on the front and rear of the vehicle. The single-drive units slot into the existing space used by the quad motor system, which means the entire architecture can stay the same.
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The result will be a system that is cheaper and lighter, and a vehicle that still has the traction control that is in line with Rivian's performance.
Richard Farquhar, vice president of propulsion at Rivian, said early conversations with Scaringe centered on how to offer adventure vehicles that don't compromise on what its customers want.
Rivian will not offer the truck or SUV with a single- motor powertrain, according to Farquhar.
The new drive unit will include the first Rivian designed and manufactured electromagnetic motor, a second-generation inverter, an optimal gear ratio, and a feature that disengages the drive at the output of the rear drive unit to allow maximum vehicle performance.
Farquhar said that they have obsessed over cooling and electromagnetic design to get as much performance and efficiency out of the integrated motor, inverter and gearbox system.
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