by Electric vehicle manufacturer Rivian is preparing for the global premiere of its new R2 model, but at the same time, it appears to be planning to trim its flagship R1 model lineup. The company has sent customers an email with a rather grim subject line stating that the “Dual Standard version is ending.”
Changes to the Model Lineup and Prices
Currently, the most affordable R1S Dual Standard trim starts at $76,990 and offers a range of 270 miles (435 km). Its discontinuation will mean that buyers will have to consider the R1S Dual version, which starts at $83,990 but offers a larger battery and a range of 329 miles (529 km). A similar situation applies to the R1T pickup: the base Dual Standard (from $72,990, 270 miles) will disappear, leaving only the more expensive Dual version (from $79,990). Thus, the entry price point for R1 models could increase by approximately $7,000.
Officially, the company only confirms that changes to the model lineup are expected later this year and advises customers to take advantage of the opportunity to purchase an R1 Dual Standard while it is still available.
Incentive Offers and the Logic Behind the Decision
In its letter, Rivian also announced special leasing terms for the R1T and R1S Dual Standard models: from $749 per month for a 36-month agreement with a $3,000 bonus for orders placed by March 19. According to the company’s calculations, considering all conditions, the initial payment could be as low as $5,644, although this amount likely does not include the $1,895 delivery fee.
The company does not state a direct reason for discontinuing the base R1 version, but analysts link it to the upcoming launch of the R2. The new model, with a starting price of approximately $45,000, will inevitably attract some customers who were considering the R1. Eliminating the most affordable R1 version allows for increasing the price gap between the two lineups, as well as simplifying production processes at the plant in Normal, Illinois.
This step is part of a larger strategic restructuring by the company, which is trying to optimize its business model in the competitive electric SUV market. Reducing trim options can help improve production and logistics efficiency, which is critically important for a young automaker. Simultaneously, this could be an attempt to increase the average transaction price and sales margin of the R1 models, steering more budget-conscious customers towards the future, more mass-market R2 model. The success of this maneuver will largely depend on how quickly Rivian can ramp up production and delivery of the new R2 to customers.
