California-based EV maker Rivian Automotive, Inc. (NASDAQ:RIVN) is reducing prices on existing inventory in the United States and Canada to compete in the increasingly heated electric vehicle market. These discounts apply to both 2023 and 2024 model year R1T and R1S vehicles.
Focus On Upgraded Features: Importantly, the discounts target optional upgrades like the drive system and battery pack, not the base price of the vehicle, Drive Tesla reported.
Key US Price Reductions:
- R1S: Quad-Motor upgrade: $6,000 (down from $8,000), Large battery: $7,100 (down from $9,100), Max battery: $15,100 (down from $19,100).
- R1T: Performance Dual-Motor upgrade: Free (down from $5,000), Large battery: $5,100 (down from $9,100).
- 2024 R1T: Large battery: $3,100 (Dual-Motor), $5,100 (Performance Dual-Motor and Quad-Motor) (all down from $9,100).
Key Canadian Price Adjustments:
- 2023 R1T/R1S: Quad-Motor upgrade: C$8,000 (down from C$12,500).
- 2024 R1T: Quad-Motor upgrade: C$11,000 (down from C$12,500).
- 2024 R1S: Quad-Motor upgrade: C$5,000 (down from C$12,500).
- Large Battery Pack: Significant reductions (over 50%) across all models and years. Prices now range from C$2,500 to C$6,000 (previously C$14,500).
Why It Matters: These discounts reportedly follow Rivian opening its R1 Shop in Canada, allowing all customers to purchase vehicles from existing inventory with delivery within a week. Previously, only those with reservations could access this option.
Rivian's R1T and R1S are currently their only production vehicles besides electric delivery vans. Both models have a starting price point of around $70,000. In the first quarter, Rivian produced 13,980 vehicles and delivered 13,588. The company aims to produce approximately 57,000 vehicles for the entire 2024 year, similar to 2023.
EV Price War: The discounts reflect the ongoing price war in the EV market, largely driven by Tesla's adjustments since the beginning of 2023. Rivian and other competitors are adapting their strategies to stay competitive.
Price Action: Rivian stock closed up nearly 5% at $10.44 on Friday, before dipping 0.86% in after-hours trading, according to data from Benzinga Pro.
Read More: Tesla Receives More Job Applications In 2023 Despite Reports Of Poor Working Conditions And Layoff
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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