Rivian Automotive discontinues lowest-priced option of R1T pickup truck and R1S SUV
August 22, 2022
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Rivian Automotive($NASDAQ:RIVN) is discontinuing the lowest-priced option of its R1T pickup truck and R1S SUV, according to an e-mail seen by MarketWatch.The lowest cost for a R1 truck will now be the $73,000 Adventure package. The lowest cost for a R1S SUV will now be $78,000. This change comes as Rivian prepares to begin production of its vehicles later this year. Rivian is betting that there is a market for luxury electric vehicles, and that by discontinuing the lowest-priced option, it can increase its margins and better compete with the likes of Tesla. It remains to be seen whether this move will pay off for Rivian in the long term. The electric vehicle market is still in its infancy, and it is unclear how demand will evolve as prices come down and more choices become available. If Rivian can successfully position itself as a premium brand, it may be able to weather the competition and emerge as a leader in the space.
Share Price
The move is intended to streamline production and reduce costs as the company ramps up production ahead of its scheduled launch date. Rivian says that it will use the savings to reinvest in other areas of the business, including research and development.
VI Analysis
Rivian Automotive is a company with strong fundamentals that reflect its long-term potential. According to VI’s Risk Rating, Rivian Automotive is a low-risk investment in terms of financial and business aspects.
However, there are some potential risks in the business and financial areas that you should be aware of. These include the potential for lower than expected sales, the need for additional funding, and the possibility of regulatory changes.
Summary
This news caused the stock price to move down the same day. This move by Rivian Automotive may be due to the company wanting to focus on its higher-priced options, or it could be due to the recent stock market volatility. Either way, this news is likely to have a negative effect on the company’s stock price in the short-term.
