Rivian Says Demand Is High Enough To Avoid Price Cuts

In a recent earnings call, reported on by一个utomotive News, Rivian CEO RJ Scaringe said his company will not cut prices to boost sales. This announcement comes on the heels of fellow electric-only automakers Lucidlowering the prices of its Air sedanand Ford cutting pricing for the F-150 Lightning by up to $10,000.

"We take a very methodical and thoughtful approach to how we look at our vehicle pricing," said Scaringe. "We feel quite comfortable with the positioning of what we've done."

一个s a reminder, the2023 Rivian R1T Truckstarts at $74,800, while the2023 Rivian R1S SUVcosts $79,800. These are just the base prices, not including mid-tier 135 kWh or the Max Pack battery options.

一个fter Ford'srecent price cuts, the F-150 Lightning is once again a sub-$50,000 car, while the Lariat 510A (closest in specification to a standard R1T) costs $69,995.

"We feel very confident in the continued backlog we have," Scaringe said when asked about demand, which seems to be dropping for EVs from other brands. "We have deep visibility into 2024 with the backlog that's established."

So as other EVs pile up on dealer lots due to rapidly dropping demand, Rivian says it still has plenty of orders to fulfill well into next year. To help meet this demand, Rivian increased its 2023 production outlook from 50,000 to 52,000 vehicles. The company is struggling to meet R1S demand butplans to ramp up productionuntil the SUV represents the majority of volume in Q1 2024.

"Our focus very much remains in not only continuing to ramp production in our normal production facility but, importantly, driving costs down across the business on our path to profitability," he added.