Rivian's Price Strategy Boosted by New Orders and Demand
Rivian's average selling prices (ASP) for its electric vehicles (EVs) continue to trend upwards as new orders drive demand. The company's CEO, RJ Scaringe, attributes the increase in ASP to improvements in material costs, plant upgrades, and higher production volumes. Despite a loss per vehicle in the third quarter, Rivian's gross profit per vehicle delivered has improved throughout the year. The company plans to introduce new technologies to its R1 platform in 2024, which is expected to reduce material costs and improve its margin profile. Rivian's exclusivity deal with Amazon has ended, allowing the company to sell its electric delivery vans to a wider customer base. With unique products and strong demand, Rivian is defying the notion of a slowing EV market.
