Rivian Reveals Dual Motor Configuration for R1S and Other Customer-Focused Improvements
Rivian is a different kind of company. They are focusing on the customer experience and building relationships with customers, which is why they reversed their price increase despite the cancelations. The dual motor configuration for the R1S was revealed in a casual manner during the Q&A session, but it's still big news. More than half of those who canceled their orders have reinstated them, and the rate of orders after the price increase is similar to that before.
Rivian has taken an unconventional approach to success by starting off with higher prices and low volume until they can get their feet under them. This allows them to focus on mass market later on while also justifying the initial high prices. It remains to be seen how well this strategy will work out for them, as there are many factors at play such as getting electrical harnesses from Mexico and providing quality service when vehicles come out of warranty. However, if they manage to make it through these challenges, they could potentially achieve great success like Tesla has.
The R1S will have a dual motor configuration, which means it will be able to accelerate faster and provide more torque. This is great news for those who want an electric vehicle that can perform well in off-road conditions. It also has the potential to increase range by allowing the motors to work together when needed, while still providing enough power for acceleration and hill climbing.
Rivian also revealed some other tidbits during their earnings call such as how they are working on developing a mobile app that allows customers to monitor their vehicles remotely and access features like charging status or service reminders. They are also looking into expanding their network of service centers across North America so customers can get help quickly if something goes wrong with their vehicle. Additionally, Rivian plans on launching new products this year including an all-electric pickup truck called the R1T as well as two SUVs: one smaller than the R1S and another larger model called the Adventure Vehicle (AV).
Overall, there was plenty of good news coming out of Rivian's recent earnings call regarding both current models and future ones in development. The dual motor configuration for the R1S should make it even more appealing for those wanting an electric SUV with excellent performance capabilities while other announcements show that they're continuing to focus on customer experience through things like remote monitoring apps or expanded service centers across North America. It's clear that Rivian is taking the right steps to ensure their success in the future.
Did anyone know about the dual motor option before the pricing increase email?
Yes, Rivian had previously said that dual motor was inevitable.
What caused Rivian to reverse their course on the price increase?
It wasn't the cancelations that made them reverse course. It was "because we have such a focus on our brand and the relationship we have with customers."
How many of the canceled orders were reinstated?
More than half the cancelations reinstated their orders.
Is Rivian getting a similar rate of orders after the price increase compared to pre-increase period?
Yes, they are getting a similar rate of orders.
Is it worth investing in Rivian?
It depends on your own risk tolerance and financial situation. Rivian has shown that electric vehicles can be successful and make a company almost 30% profit margins. However, Tesla's books are very muddy and their success is largely due to $500M a year in ZEV credits. Additionally, how Rivian will handle service is something to consider when ordering a vehicle.
Why did Rivian raise prices initially?
Just like Tesla, Rivian had to start with higher prices and low volume initially until they got their feet under them. After that they can put more focus on mass market. The price increase was justified but not for existing holders. Once they get their second plant in place and start putting 10k trucks on the road per month, then they can talk about lowering prices and different configurations.
What other tidbits were mentioned in the earnings call?
Rivian mentioned that they are on track to deliver 10,000 vehicles this year, and that they have received over 30,000 reservations for their R1T and R1S models. They also said that they are working on a new battery technology that will increase range and reduce cost. Additionally, they plan to open up more service centers in 2021. Finally, Rivian is looking into expanding their product line beyond just trucks and SUVs.