Rivian Now Has More Than 1,000 Different R1 Configurations, It's a Logistical Nightmare

While customers appreciate having a long list of extras to choose from when ordering their vehicles, this could quickly become a nightmare for the carmaker. Every option needs to be thoroughly tested before getting the green light to enter production, while certifications need to be updated for many changes. It might look like a small detail you tick off in the configurator is not a big deal, but too many options can spiral costs out of control.

It also creates a logistical nightmare, as it can be overwhelming to produce different models with different features on the same production line. This is why only the biggest carmakers can afford to do it, while others prefer to offer many extras grouped into packages or even trims. The Japanese carmakers owe much of their manufacturing efficiency to their simplified configurations.

This is why it's a good idea for EV startups to optimize costs by offering fewer options and prioritizing configurations that are easier to build and offer the biggest margins. Tesla has become a major carmaker, but it still sticks to this strategy, which has proved its benefits time and again. Rivian has also done it in the past when it fast-tracked specific configurations to speed up deliveries and optimize costs.

Still, the EV startup appears to be going in the wrong direction after it announced not one but two Standard battery packs on January 8. The way this is framed makes R1 EVs look more affordable or the range significantly improved compared to the initial announcement, depending on what you want to see. The most affordable configuration was earlier listed on Rivian Vehicle Studio with 270 miles of range for $73,000 in the case of R1T or $78,000 for R1S.

Two new Standard battery packs are available

Following the announcement of the new battery options, the R1T Dual Motor AWD with Standard battery indeed offers 270 miles of range. Still, it's $3,100 cheaper than previously announced, at $69,900. For the old price of $73,000, Rivian sells you the Standard+ battery pack, which boasts 315 miles of range. The same is true for the R1S, which now starts at $74,900 with the Standard pack (270 miles) and is $78,000 for the Standard+ pack with 315 miles of range.

The move makes both Rivian EVs more affordable, and the deal is even sweeter because both battery options qualify for the $3,750 IRA tax credit. This means you can buy a Rivian R1T for as low as $66,150 and an R1S for $71,150. However, Rivian offers an even sweeter deal to those who lease their truck or SUV. Thanks to deducting the entire $7,500 tax credit, the cheapest R1T configuration is $536 per month with a $6,000 downpayment.

Although many thought the cheaper battery options were powered by the LFP chemistry, Rivian has clarified that both Standard packs use NCA cells. This means Rivian used fewer modules to reduce the battery pack capacity (and price). Based on Rivian's clarifications, the LFP cells will arrive in the Standard pack "later this year."

As Rivian also revealed the usable capacity of all four battery packs available for the R1 EVs, we see a more significant difference between the Standard and Standard+ batteries than the name suggests. While the former has 106 kWh, the Plus version has 15 kWh more, at 121 kWh. From there, Rivian offers 10-kWh increments, with 131 kWh for the Large pack and 141 kWh for the Max pack.

Rivian offers too many options

The way Rivian priced these battery options is also interesting. You pay $3,100 extra for the 15 kWh in the Standard+, while the 10 kWh increments in the other packs cost $6,000 more (Large pack) and $10,000 more (Max pack). Based on these numbers alone, you get the best bang for the buck with the Standard+ battery. This also offers a decent range at 315 miles, which is enough for most use cases except towing.

More worrisome than the pricing structure is what this variety means for Rivian's bottom line. The company now offers not only four battery options but also five wheel and tire combinations, three motor variants, nine exterior colors, and five interior options. If you multiply all these variants, you get 2,700 combinations. The actual number is lower, at about 1,000, because not every combination is possible.

The Standard pack is restricted to the Dual-Motor AWD configurations, and you cannot have it on a Performance or Quad-Motor variant. The Standard+ battery pack can be configured on either Dual Motor AWD or Performance trims but not on the Quad Motor AWD. The latter continues to be available exclusively with the Large battery pack, and other restrictions apply across the lineup.

Still, we're talking about two vehicle lines, so everything needs to be counted twice. This certainly makes the path to profitability much more difficult. Hopefully, Rivian will see what the customers prefer and streamline the options by the time the refreshed R1 lineup arrives later this year. That would also be when the LFP cells make their way into the Standard pack, as Rivian has already confirmed.