[jmbach]

Edit 3/3/22 - since posting this, Rivian has reversed imposing the price increase on existing pre-order holders. They are to be commended for admitting to a mistake (especially on the messaging and customer service aspects). While I still have concerns that this even happened, I'm sticking with my plans to buy an R1T and accessories, as well as keeping my investment in the company.

Let's flood the market with used Rivians. How? Take advantage of the 7 day return policy. If you can afford it, don't trade in an existing vehicle, don't swap over your plates, take delivery, drive hard for 7 days, and return it. You'll get your money back, plus any taxes you paid, and you can go back to driving what you have now. There will be a bunch of used Rivians on the market which will reduce demand for the brand-new vehicles. See how that affects their profitability.

 

[Cactus]

Until they rescind their 7 day return policy. We are not dealing with an honest company anymore.

 

[lefkonj]

What kind of morons are on this forum.

Do you or did you even have a pre-order? If you don't like the new pricing then cancel, they owe you nothing. The price was not locked in, so deal with it. Go grab the Cybertruck.... or maybe the Ford Lightning or whatever else you want that is not currently available.

 

[Cactus]

What kind of morons are on this forum.

Do you or did you even have a pre-order? If you don't like the new pricing then cancel, they owe you nothing. The price was not locked in, so deal with it. Go grab the Cybertruck.... or maybe the Ford Lightning or whatever else you want that is not currently available.

@lefkonj- Do you think bait and switch is honest?
I bet most pre-order holders are not morons. We understand the pandemic, chip shortage and inflationary pressures on top of trying to build a cool truck and large SUV. Rivian's lack of communication was frustrating, then when they choose to communicate, it's a gut-punch. In fact, I never even knew Rivian was considering dual motor. The draw to their tech was four electric motors each powering one wheel. What's next? A squirrel chasing a nut?

 

[lefkonj]

How was it a bait and switch. By definition that means they sold you a R1S but delivered you a Highlander.... Not what happened here. They always had a clause that the pricing could change, we all just hoped that it wouldn't. Well sh!t happens and the world went through hell, this resulted in a massive change in the costs of goods.

I have received plenty of communication from Rivian since my pre-order 2 years ago, more than enough in fact. Sorry they aren't live streaming the factory everyday but that is life. Wait maybe they can shoot a truck to the sun, then cancel all pre-orders and stop any notice on the product (wait Tesla did that one first with the roadster)

 

[Cactus]

From merriam-webster:
Definition of bait and switch

1: a sales tactic in which a customer is attracted by the advertisement of a low-priced item but is then encouraged to buy a higher-priced one.

I can tell you're angry too. We'll all get through this.

 

[Rob911]

bait and switch

noun

1. A fraudulent advertising claim or sales offer for a product or service that is not available or not for sale at the stated price, made with the intention of luring customers who are then offered something else or forced to spend more money to get the same thing.

 

[EVMike]

As a early pre-order holder I'm extremely disappointed. Yes Supply chain challenges exist and inflation is driving the prices of many things up, however I think Rivian truly missed the mark on this price increase. You've got early adopters that put faith and paid deposits years ago and to gut punch them with up to 20% increases is going to become their downfall. Regardless of the quality of the vehicle, many consumers are brand loyal and with the lack of transparency and ethics behind this increase Rivian has cost themselves some (Many?) current and future loyal customers.

Based on their preorder numbers and the huge price increase, if they don't lose a single pre-order they might rake in an extra 600-700m (Highly unlikely no one cancels). They've already dropped 5x that in market cap today alone plus all of the potential future brand loyalties.

I could honestly get behind a price increase going forward for new orders due to inflationary and supply chain considerations, but such a hefty hefty increase on those putting blind faith in Rivian as early adopters truly does feel like a gut punch and I believe cancellations (Mine included most likely) will result in this being a very badly executed decision by Rivian and set them behind years in future customers.

From my perspective Rivian badly missed the mark, if they chose to increase the pricing going forward and honouring it for those that blindly put faith in the company it would provide them additional brand loyalty, fantastic PR and increased the integrity and ethics of the brand. The way they have handled this increase has had the opposite effect.

The lack of transparency throughout including multiple delays, not knowing where in line your purchase is making it difficult for consumers to plan the arrival of vehicles etc, all make things more unnerving about a new startup company yet many of us stayed loyal as believers. I believe yesterdays price increase was truly a slap in the face to those loyal and will put Rivian on shaky ground unfortunately.

 

[diehlryan]

All of this plus if Rivian wanted to increase price from the early 2018 numbers they could have done so in a less jarring way when they launched the configurator. Until that point the price was only an idea or ballpark.

As a early pre-order holder I'm extremely disappointed. Yes Supply chain challenges exist and inflation is driving the prices of many things up, however I think Rivian truly missed the mark on this price increase. You've got early adopters that put faith and paid deposits years ago and to gut punch them with up to 20% increases is going to become their downfall. Regardless of the quality of the vehicle, many consumers are brand loyal and with the lack of transparency and ethics behind this increase Rivian has cost themselves some (Many?) current and future loyal customers.

Based on their preorder numbers and the huge price increase, if they don't lose a single pre-order they might rake in an extra 600-700m (Highly unlikely no one cancels). They've already dropped 5x that in market cap today alone plus all of the potential future brand loyalties.

I could honestly get behind a price increase going forward for new orders due to inflationary and supply chain considerations, but such a hefty hefty increase on those putting blind faith in Rivian as early adopters truly does feel like a gut punch and I believe cancellations (Mine included most likely) will result in this being a very badly executed decision by Rivian and set them behind years in future customers.

From my perspective Rivian badly missed the mark, if they chose to increase the pricing going forward and honouring it for those that blindly put faith in the company it would provide them additional brand loyalty, fantastic PR and increased the integrity and ethics of the brand. The way they have handled this increase has had the opposite effect.

The lack of transparency throughout including multiple delays, not knowing where in line your purchase is making it difficult for consumers to plan the arrival of vehicles etc, all make things more unnerving about a new startup company yet many of us stayed loyal as believers. I believe yesterdays price increase was truly a slap in the faith to those loyal and will put Rivian on shaky ground unfortunately.

 

[zachsmith3393]

How was it a bait and switch. By definition that means they sold you a R1S but delivered you a Highlander.... Not what happened here. They always had a clause that the pricing could change, we all just hoped that it wouldn't. Well sh!t happens and the world went through hell, this resulted in a massive change in the costs of goods.

I have received plenty of communication from Rivian since my pre-order 2 years ago, more than enough in fact. Sorry they aren't live streaming the factory everyday but that is life. Wait maybe they can shoot a truck to the sun, then cancel all pre-orders and stop any notice on the product (wait Tesla did that one first with the roadster)

It's 14k.....that's pretty bait and switch. Seems more like they made a play to get lots of pre orders to drive up evaluation and now that they got their cash infusion they're slapping the believers

 

[foofoofodio]

Bait and switch. I wonder if they did this to jack up reservations leading up to their IPO. As a reservation holder, I'm pissed. As an investor, I'm super pissed.

Rivian just revealed who they are. They cannot be trusted. Their word is meaningless.

 

[lefkonj]

It's 14k.....that's pretty bait and switch. Seems more like they made a play to get lots of pre orders to drive up evaluation and now that they got their cash infusion they're slapping the believers

or now instead of a tire costing 500 it is 600, glass for the windows and roof another 10%, electronics, wiring, metal, batteries etc etc. Sure it makes people feel good to say they did wrong but you have no proof they did this intentionally. I have all sorts of customers who are seeing costs go up on all sorts of goods and products. Are those companies doing a bait and switch? Come on just cancel your order and go order a Cybertruck. Sorry wait Tesla can't ship those either and they are having pricing issues. Where is the bashing of them. Almost all vehicles have gone up in price this year.

 

[battles2a5]

From my perspective Rivian badly missed the mark, if they chose to increase the pricing going forward and honouring it for those that blindly put faith in the company it would provide them additional brand loyalty, fantastic PR and increased the integrity and ethics of the brand. The way they have handled this increase has had the opposite effect.

Right there with you, EVMike. I think this is the point they missed, but I don't think Rivian has ever understood the support and evangelism that early reservation holders provided. Point in fact, reservation date did not seem to have much of an impact on when you receive your truck. Which means putting your faith in Rivian from the start, an unproven company with the odds against them, meant nearly nothing to them. And this just validates that position. Agree this is going to bite them in the end, I hope they realize and course correct before it is too late.

 

[michael.borges26]

What kind of morons are on this forum.

Do you or did you even have a pre-order? If you don't like the new pricing then cancel, they owe you nothing. The price was not locked in, so deal with it. Go grab the Cybertruck.... or maybe the Ford Lightning or whatever else you want that is not currently available.

I don't think there is a need for name calling. We can have an opinion on how we feel about it and yes at the end is our choice if we decide to get the Rivian at the price increase or go with something else. But you can't deny that is a bit of disappointment what they done. That is all.

 

[RivianDoc]

How was it a bait and switch. By definition that means they sold you a R1S but delivered you a Highlander.... Not what happened here. They always had a clause that the pricing could change, we all just hoped that it wouldn't. Well sh!t happens and the world went through hell, this resulted in a massive change in the costs of goods.

I have received plenty of communication from Rivian since my pre-order 2 years ago, more than enough in fact. Sorry they aren't live streaming the factory everyday but that is life. Wait maybe they can shoot a truck to the sun, then cancel all pre-orders and stop any notice on the product (wait Tesla did that one first with the roadster)

While inflation is likely part of the story, the price hike may have been planned for a while. In a lawsuit filed by Laura Schwab, the company’s former VP of sales and marketing who alleges the company has a “toxic bro culture,” concerns over profitability were raised in spring 2021. From the lawsuit:

Beginning in spring of 2021, Ms. Schwab started to raise the alarm about concerns she had relating to Rivian’s ability to deliver on its promises to investors. Shockingly, Mr. Behl dismissed her concerns and explicitly asked Ms. Schwab not to raise these issues in front of Mr. [RJ] Scaringe [Rivian’s CEO].
First, it was clear that the vehicles were underpriced, and each sale would result in a loss for the company. Ms. Schwab ultimately contacted Dennis Lucey, Rivian’s Finance Director, and worked with him to develop projections showing how much of a loss the company would incur if Rivian did not raise prices. Ms. Schwab raised this issue with several executives, including Mr. Behl, Stuart Dixon (Director of Product Management), and Andy Zicheck (Principal Product Manager). Mr. Behl brushed her off. Eventually, Mr. [Patrick] Hunt [then-senior director of consumer digital] raised the issue with Mr. Behl, at which point Mr. Behl agreed that they would need to raise the vehicle prices after the IPO.

AFTER THE IPO! Bait and Switch = bait demand up until the IPO by lying about what they can deliver at a configured price, use the published demand to inflate IPO price, switch the price days to weeks before actually selling vehicle to real customers who are not employees.

 

[RivianDoc]

Bait and switch. I wonder if they did this to jack up reservations leading up to their IPO. As a reservation holder, I'm pissed. As an investor, I'm super pissed.

Rivian just revealed who they are. They cannot be trusted. Their word is meaningless.

While inflation is likely part of the story, the price hike may have been planned for a while. In a lawsuit filed by Laura Schwab, the company’s former VP of sales and marketing who alleges the company has a “toxic bro culture,” concerns over profitability were raised in spring 2021. From the lawsuit:

Beginning in spring of 2021, Ms. Schwab started to raise the alarm about concerns she had relating to Rivian’s ability to deliver on its promises to investors. Shockingly, Mr. Behl dismissed her concerns and explicitly asked Ms. Schwab not to raise these issues in front of Mr. [RJ] Scaringe [Rivian’s CEO].
First, it was clear that the vehicles were underpriced, and each sale would result in a loss for the company. Ms. Schwab ultimately contacted Dennis Lucey, Rivian’s Finance Director, and worked with him to develop projections showing how much of a loss the company would incur if Rivian did not raise prices. Ms. Schwab raised this issue with several executives, including Mr. Behl, Stuart Dixon (Director of Product Management), and Andy Zicheck (Principal Product Manager). Mr. Behl brushed her off. Eventually, Mr. [Patrick] Hunt [then-senior director of consumer digital] raised the issue with Mr. Behl, at which point Mr. Behl agreed that they would need to raise the vehicle prices after the IPO.

 

[TessP100D]

What kind of morons are on this forum.

Do you or did you even have a pre-order? If you don't like the new pricing then cancel, they owe you nothing. The price was not locked in, so deal with it. Go grab the Cybertruck.... or maybe the Ford Lightning or whatever else you want that is not currently available.

I dont think you understand the gravity of the situation

 

[TessP100D]

How was it a bait and switch. By definition that means they sold you a R1S but delivered you a Highlander.... Not what happened here. They always had a clause that the pricing could change, we all just hoped that it wouldn't. Well sh!t happens and the world went through hell, this resulted in a massive change in the costs of goods.

I have received plenty of communication from Rivian since my pre-order 2 years ago, more than enough in fact. Sorry they aren't live streaming the factory everyday but that is life. Wait maybe they can shoot a truck to the sun, then cancel all pre-orders and stop any notice on the product (wait Tesla did that one first with the roadster)

Please get help. Soooon

 

[paulcoble4827]

Let's flood the market with used Rivians. How? Take advantage of the 7 day return policy. If you can afford it, don't trade in an existing vehicle, don't swap over your plates, take delivery, drive hard for 7 days, and return it. You'll get your money back, plus any taxes you paid, and you can go back to driving what you have now. There will be a bunch of used Rivians on the market which will reduce demand for the brand-new vehicles. See how that affects their profitability.

Nice move if just want to throw a tantrum and destroy something. Rivian hurt us. But Rivian promptly admitted the mistake and corrected it. Now you want to throw a hissy fit? Step back and take a deep breath.

 

[TessP100D]

Bait and switch. I wonder if they did this to jack up reservations leading up to their IPO. As a reservation holder, I'm pissed. As an investor, I'm super pissed.

Rivian just revealed who they are. They cannot be trusted. Their word is meaningless.

100%. Im pissed too