Photo: Rivian
Rivian annoyed many customers when it hiked the prices in March 2022. The backlash prompted the EV startup to offer price protection to those who ordered a Rivian before March 1, 2022. However, that didn't mean much since it constantly pushed these customers to the back of the queue. To add insult to injury, Rivian has now announced an expiry date for customers with special pre-order pricing.
Rivian impressed everyone, from potential customers to industry veterans, when it launched the R1T in September 2021. The electric pickup truck was the first of its kind to sell in the US and offered great build quality and features. The EV startup appeared to have hit gold, and many predicted it could threaten Tesla's position in the EV market. However, Rivian faced many roadblocks on the road to volume production, and the tough market conditions forced it to make painful decisions.
One of the most unpopular was to raise prices by up to $20,000 on March 1, 2022. To be fair, inflation was rampant at the time, and the supply chains struggled to provide the necessary components to the automotive industry. As a small startup, Rivian lacked the purchasing power to negotiate more affordable prices. This forced it to reconsider its pricing strategy, even if it risked alienating its customers. However, Rivian chose the worst strategy possible: not having a strategy at all.
One day after it announced the price increases, Rivian backtracked and apologized to those affected. Rivian said it wants to make things right by offering price protection to those who have already placed an order before March 1, 2022. Everyone was happy, and the hatchet was buried, but that was not the end of it. As the production pace increased, Rivian forgot about its promise. Instead of delivering the vehicles to those who placed an order before the price hike, the EV startup pushed them to the back of the queue.
This became obvious throughout 2023 when deliveries caught up speed, and Rivian had enough vehicles in inventory for almost immediate delivery. However, people with grandfathered prices could not benefit because the configurations they ordered before March 2022 no longer existed. If they changed their configuration, they would've lost price protection. In May 2023, I was convinced Rivian would force them to opt for a different configuration. Now, Rivian has announced just that.
An email that Rivian sent to those customers announced to them that their price protection expires on September 30, 2024, whether they place an order or not. To entice them to order before the time expires, Rivian extended the price protection to the recently announced R1T Dual Motor with the Standard Pack battery. This configuration is normally priced at $69,900, but original reservation holders can order it for $55,920 from the R1 Shop. While the price is lower than what they ordered, it's also for a lesser vehicle. Unfortunately, this is a take-it-or-leave-it offer, and the clock is ticking.
One of the most unpopular was to raise prices by up to $20,000 on March 1, 2022. To be fair, inflation was rampant at the time, and the supply chains struggled to provide the necessary components to the automotive industry. As a small startup, Rivian lacked the purchasing power to negotiate more affordable prices. This forced it to reconsider its pricing strategy, even if it risked alienating its customers. However, Rivian chose the worst strategy possible: not having a strategy at all.
One day after it announced the price increases, Rivian backtracked and apologized to those affected. Rivian said it wants to make things right by offering price protection to those who have already placed an order before March 1, 2022. Everyone was happy, and the hatchet was buried, but that was not the end of it. As the production pace increased, Rivian forgot about its promise. Instead of delivering the vehicles to those who placed an order before the price hike, the EV startup pushed them to the back of the queue.
This became obvious throughout 2023 when deliveries caught up speed, and Rivian had enough vehicles in inventory for almost immediate delivery. However, people with grandfathered prices could not benefit because the configurations they ordered before March 2022 no longer existed. If they changed their configuration, they would've lost price protection. In May 2023, I was convinced Rivian would force them to opt for a different configuration. Now, Rivian has announced just that.
An email that Rivian sent to those customers announced to them that their price protection expires on September 30, 2024, whether they place an order or not. To entice them to order before the time expires, Rivian extended the price protection to the recently announced R1T Dual Motor with the Standard Pack battery. This configuration is normally priced at $69,900, but original reservation holders can order it for $55,920 from the R1 Shop. While the price is lower than what they ordered, it's also for a lesser vehicle. Unfortunately, this is a take-it-or-leave-it offer, and the clock is ticking.
Google News