Rivian Will Not Be a part of Tesla And Lucid In Reducing Costs To Spur Gross sales

Rivian won’t collapse to market strain and won’t lower costs to spice up gross sales, CEO RJ Scaringe mentioned on the corporate’s second-quarter earnings name on August 8.

Scaringe mentioned Rivian sees continued sturdy demand for its electrical R1T pickup and R1S SUV and won’t be a part of Tesla and Lucid in reducing costs, Automotive Information reported.

Requested by an analyst about price-cutting, the manager mentioned R1 merchandise have a broad value band, pointing to automobile configurations that may considerably elevate or decrease the worth.

“We take a really methodical and considerate strategy to how we take a look at our automobile pricing. As we take into consideration the positioning of the product, the capabilities of the product – on-road, off-road, dynamically – and the function set that is within the autos, we really feel fairly snug with the positioning of what we have accomplished.”

The bottom dual-motor Rivian R1T is priced from $74,800 whereas the bottom dual-motor R1S begins at $79,800 (each costs together with transport). Greater trims with bigger battery packs, 4 motors, and different options can get close to $100,000.

It is price noting that each the R1T and R1S dual-motor fashions qualify for as much as $7,500 in federal tax credit, as they’re each made within the US with regionally sourced battery supplies and their beginning MSRPs are below the $80,000 restrict.

RJ Scaringe added that Rivian has loads of orders that can take many months to satisfy at present manufacturing charges. The corporate not offers the precise variety of its order backlog, although.

“We really feel very assured within the continued backlog we’ve. We’ve got deep visibility into 2024 with the backlog that is established,” the manager mentioned in response to a query about demand, which has dwindled at some EV rivals. He added that residual values for its used autos available on the market are an indication of Rivian’s wholesome demand.

“The R1 merchandise inside the truck and SUV segments are among the many greatest residual values of any product in these classes, no matter electrical or combustion. Our autos are sustaining their worth extraordinarily properly.”

Rivian raised its manufacturing steering for 2023 to 52,000 autos from 50,000 beforehand amid easing supply-chain constraints. The EV maker delivered 12,640 autos within the April-June interval, beating analysts’ estimates of 11,000.

Scaringe mentioned Rivian stays centered on persevering with to ramp manufacturing at its plant in Regular, Illinois, and “driving prices down throughout the enterprise on our path to profitability.”

As a part of its second-quarter monetary report, the EV startup posted a $1.2 billion web loss in contrast with $1.7 billion throughout the identical quarter final yr, whereas income tripled to $1.1 billion. The corporate additionally mentioned it expects a smaller working loss in 2023.