Written by Cláudio Afonso | LinkedIn | X
Electric vehicle maker Rivian has announced on Thursday 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.
Rivian has announced significant price reductions for its 2023/2024 R1S model. The Quad-Motor option has been reduced to $6,000, down from $8,000. The Large battery option 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.
The firm previously invested in the electric vehicle startup, initially purchasing 16,765 shares in early 2022 when Rivian’s stock price was significantly higher. Throughout the following quarters, Virtu adjusted its holdings, peaking at 146,008 shares in mid-2023.
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
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