Rivian won’t join Tesla & Lucid in cutting prices to boost sales: CEO Scaringe

Rivian won’t join Tesla & Lucid in cutting prices to boost sales: CEO Scaringe

American electric vehicle (EV) manufacturer Rivian Automotive Incorporated has no plans to bow to market pressure and cut prices of its EVs to boost sales, Chief Executive Officer (CEO) Robert Scaringe declared at the company's recently-held second-quarter (Q2) earnings call. Speaking at the Q2 earnings call earlier this month, CEO Scaringe said that Rivian felt no need to join rivals like Tesla and Lucid in cutting prices of EVs because the company continued to enjoy a strong demand for its all-electric R1T pickup truck and R1S SUV.

When asked for a comment on cutting of prices, the top executive said that the R1 EVs have a broad price band for customers to choose from. Actually, he was pointing to various configurations that allows customers to significantly increase or lower the prices. He stressed that the company takes a very methodical & thoughtful approach to vehicle pricing.

Speaking on the topic, he said, “We take a very methodical and thoughtful approach to how we look at our vehicle pricing. As we think about the positioning of the product, the capabilities of the product – on-road, off-road, dynamically – and the feature set that's in the vehicles, we feel quite comfortable with the positioning of what we’ve done.”

The entry-level dual-motor Rivian R1T electric pickup truck comes with a starting price tag of $74,800, while the entry-level dual-motor R1S starts at $79,800. Both of the given price tags include shipping charges. In higher trim levels, the pickup truck and SUV comes equipped with larger battery packs, four electric motors, and other high-tech features, but their prices can also soar as high as $100,000 per unit.

It is also worth noting here that both the R1T electric pickup truck and R1S electric SUV with dual-motor systems qualify for the U.S. federal government’s tax credits of up to $7,500 per unit, as they are both built in the U.S. with locally sourced battery materials and their starting prices fall under the limit of $80,000.

According to Scaringe’s claims, Rivian has plenty of orders that will take several months to be fulfilled at current rates of production. However, the company didn’t provide the precise number of its order backlog.

Meanwhile, the Irvine, Calif.-headquartered EV maker has raised its production guidance for current year from 50,000 to 52,000 vehicles, thanks to easing supply-chain constraints. In the April-June period, the company delivered nearly 12,640 EVs, beating analysts’ average estimate of 11,000 units.

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