Written by Cláudio Afonso | LinkedIn | X
In an email sent to reservation holders on Friday, Rivian announced delays in deliveries for customers in Washington state. The electric vehicle manufacturer cited logistical challenges following a recent surge in financing and leasing deals as the primary reason for the delay.
The email explained that Rivian had to rework over 500 deals within two days of announcing discounted MSRPs, a task described as “very ambitious.” Despite their efforts, the company was unable to generate and send contracts in time for all customers.
On Thursday, the company announced a series of new incentives aimed at boosting sales and clearing inventory of its 2023 and 2024 R1 models, including the R1S SUV and R1T truck.
The incentives include significant discounts, free upgrades, and lowered prices on battery options as the company prepares to launch refreshed versions of both models in early next year.
“Due to this, regrettably, we will have to reschedule your delivery date as the state of Washington is a closed state and we legally are unable to transact a same-day sale,” the email stated. Rivian emphasized that this legal restriction prevents them from completing same-day transactions, necessitating the rescheduling of deliveries.
The company assured customers that they are working diligently to provide the best deals possible on their R1 vehicles. Rivian also asked customers to provide a suitable date and time for rescheduling their appointments, noting limited availability due to the upcoming holiday weekend and closure on Monday.
The 2023/2024 R1S model with the Quad-Motor option has been reduced to $6,000, down from $8,000. The Large battery option of the same model now costs $7,100, a reduction from the previous $9,100. The Max battery option has also seen a price drop, now available for $15,100, down from $19,100.
For the 2023 R1T model, Rivian is offering a free upgrade to the Performance Dual-Motor, which was previously a $5,000 option. Additionally, the Large battery option is now priced at $5,100, down from $9,100.
The 2024 R1T model also benefits from new incentives. The Large battery option for the Dual-Motor has been reduced to $3,100, previously $9,100. The Large battery option for the Performance Dual-Motor and Quad-Motor is now $5,100, also down from $9,100.
These changes reflect reductions ranging from $3,000 to $6,000 and include both free upgrades and lower prices on various battery options.
On Thursday, Barclays analyst Dan Levy reiterated an Equalweight rating and $10.00 price target on Rivian shares this Thursday after meeting with the company’s CFO Claire McDonough and SVP of Software Development Wassym Bensaid.
The analyst highlighted Rivian’s vertically integrated hardware/software approach and details on the revamped models R1S and R1T.
In a recent SEC filing, Virtu Financial disclosed that it acquired 404,875 shares of Rivian in the first quarter of the year. With the last closing price at $10.70 per share, this new position is valued at approximately $4.33 million.
According to a form filed last week, the CFO Claire McDonough sold 3,210 shares on May 16 at $10.25 per share, totaling approximately $32,902.
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The automaker has been urging early pre-order holders to finalize their purchase of an R1 model by the end of September or risk forfeiting their grandfathered pricing discount of about $18,000.
This discount enables customers to lease a base R1T for $420 per month with an initial payment of approximately $7,000. In an email sent to all the reservation holders, Rivian says “Now is the time” to take advantage of the discount of “approximately 20 percent”.
The EV manufacturer confirmed recently that is partnering with Google on Google Cast and YouTube integration. Drivers will now have the capability to stream high-definition video content with premium sound directly to their vehicle’s screen, using both a native YouTube app and Cast-enabled apps on their phone or tablet.
The company has recently reported 13,980 vehicles produced in the first quarter of the year of which 13,588 were delivered to its customers. Despite having previously guided a 10-15% quarter-over-quarter drop from the fourth quarter, Rivian is on track and reaffirmed its 2024 production guidance of 57,000 vehicles.
Written by Cláudio Afonso | LinkedIn | X
