Rivian’s cheaper model will break cover as automakers focus on more affordable EVs.
Over the past year, carmakers have cut their EVs’ prices as demand stumbles amid a declining economy. Tesla led the way with deep discounts, before the likes of Ford and Lucid followed suit—but Rivian remained steadfast. Now though, Rivian’s prices are finally budging, as the electric pickup and SUV maker has chopped $3,100 off its base models on the runup to the debut of its more affordable R2.
The price cut was observed by Automotive News, which reports the cheapest R1T and R1S with 270-mile ranges used to start at $74,800 and $79,800 delivered, respectively. Now, those models start $71,700 and $76,700, and Rivian has introduced new trims with 315 miles of range at the former base prices. Both remain eligible for $3,750 in federal tax credits, or $7,500 for leases, which now reportedly cost as little as $536 per month.
2022 Rivian R1T. Rivian
Rivian is believed to be reacting to the same EV demand slip as the rest of the industry. Its nature is widely debated; some characterize it as a true decline, while others chalk it up as a plateau or insist there’s no demand problem. However, it’s clear automakers are reacting to something, and that something is causing a price war.
2022 Rivian R1T at Rivian’s Normal, IL factory. Rivian
Then there’s the R2, which will debut March 7. It’s expected to be a smaller, cheaper SUV that’ll muscle in on a market currently led by the Tesla Model Y. It’ll be Rivian’s volume seller, but probably not until 2026. In the meantime, the company will rely on sales of its R1 and increasingly accessible commercial vans to tide it over. And who knows, maybe that Rivian sports car could still see the light of day, eventually.
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