Kia EV9 sales slowed by premium prices, quality issues ahead of US debut
Despite a promising start, Kia’s new flagship EV9 sales have stalled out with a premium price tag and quality issues that have slowed the electric SUV’s momentum.
Strong start
According to the Korean Economic Daily, Kia, an affiliate of the Hyundai Motor Group, sold just 408 EV9 units in Korea last month.
The news comes as something of a surprise following the EV9’s strong start in Korea. After debuting in its home market on June 19, the electric SUV earned over 13,000 pre-orders in just eight days on the market. A Kia official said over 50% of the orders were from new customers.
Less than a month after launching, Kia sold 1,334 EV9 units in June and another 1,251 in July. The electric SUV gained popularity for its long-range capabilities (311 miles on a charge), versatility, and tech-focused features.
Built on Hyundai’s E-GMP platform, the EV9 offers “true SUV capabilities,” including a spacious interior, AWD, and 5,000 lbs of towing capacity.
Kia EV9 sales slip in August
Despite the strong start and potential leads, Kia has failed to keep the momentum going. Sales slipped over 300% from July, suggesting the electric SUV has fallen out of favor in its home market.
As KED notes, the most expensive EV9 model fully loaded costs around 100 million won ($74,840) in South Korea.
After subsidies, the price is around 70 million won ($52,425). That’s nearly double the cost of its mid-size Palisade SUV and Carnival minivan.
Kia isn’t known for its premium vehicles, which could be one reason the flagship SUV is struggling to gain market traction.
The EV9’s massive 99.8 kWh battery makes it challenging to cut prices, according to the automaker. Battery costs can amount to nearly half of the vehicle’s production expenses.
On top of this, Kia’s electric SUV experienced several quality issues during its rollout, including lamp control signals, charging controls, and other systems, according to the Ministry of Land, Infrastructure and Transport.
Kia fixed the issues at no cost to owners, but there are likely additional factors as to why EV9 sales fell by so much last month.
EV leaders like Tesla are moving in the opposite direction with drastic price cuts. Tesla introduced the Model Y with an LFP battery pack in Korea in the mid-40 million won (roughly $35K to $40K) price range after subsidies.
German luxury automakers, including BMW, Audi, and Mercedes-Benz, have made similar moves. Electric models in the region, like the EQS SUV, are up to 26 million won ($19,500) off with discounts.
Meanwhile, the South Korean automaker hopes bringing the EV9 overseas will boost sales momentum. The EV9 is expected to launch in the US in the fourth quarter with two powertrain options – 76.1 kWh and 99.8 kWh.
Kia’s flagship electric SUV will be the automaker’s first EV assembled in the US at its West Point, Georgia, facility, starting next year. The move will enable the vehicle to qualify for the $7,500 EV tax credit from the Inflation Reduction Act.
Kia has yet to release prices, but expectations are for it to start around $60,000 for the standard pack and upwards of $70,000 for the more powerful trim.
Electrek’s Take
Kia’s flagship EV9 is slated to play a key role as the automaker transitions to an electric, digital future.
A bump in the road at this point should not be a concern. Many new vehicles (not just electrics) experience minimal quality issues. Kia will likely learn from the missteps in its home market as it launches in key markets like the US.
However, the battery costs could continue to haunt them overseas. With production at its West Point plant not slated to begin until next year, Kia will ship models until then, driving costs up further.
Once production begins in the US, it should help level out costs. Meanwhile, Hyundai and SK On are building a $5 billion EV battery cell factory in Bartow County, Georgia. Annual production capacity is expected to reach 35 GWh to support Kia, Hyundai, and Genesis EVs. Local production should help Kia gain control of costs.
FTC: We use income earning auto affiliate links. More.
The Stripe logo on a smartphone with U.S. dollar banknotes in the background.
Budrul Chukrut | SOPA Images | LightRocket via Getty Images
Stripe cut 300 jobs, representing about 3.5% of its workforce, mostly in product, engineering and operations, CNBC has confirmed.
The payments company, valued at about $70 billion in the private markets, still expects to increase headcount by 10,000 by the end of the year, which would be a 17% increase, and is “not slowing down hiring,” according to a memo to staff from Chief People Office Rob McIntosh. Business Insider reported earlier on the cuts and the memo.
A Stripe spokesperson also confirmed to CNBC that a cartoon image of a duck with text that read, “US-Non-California Duck,” was accidentally attached as a PDF to emails sent to some of the employees who were laid off. Some of the emails mistakenly provided affected employees with an incorrect termination date, the spokesperson said.
McIntosh sent a follow-up email to staffers apologizing for the “notification error” and “any confusion it caused.”
“Corrected and full notifications have since been sent to all impacted Stripes,” he wrote.
In 2022, Stripe cut roughly 1,100 jobs, or 14% of its workers, downsizing alongside most of the tech industry, as soaring inflation and rising interest rates forced companies to focus on profits over growth. The Information reported that Stripe had a few dozen layoffs in its recruiting department in 2023.
Stripe’s valuation sank from a peak of $95 billion in 2021 to $50 billion in 2023, before reportedly rebounding to $70 billion last year as part of a secondary share sale. The company ranked third on last year’s CNBC Disruptor 50 list.
In October, Stripe agreed to pay $1.1 billion for crypto startup Bridge Network, whose technology is focused on making it easy for businesses to transact using digital currencies.
Brothers Patrick and John Collison, who founded Stripe in 2010, have intentionally steered clear of the public markets and have given no indication that an offering is on the near-term horizon. Total payment volume at the company surpassed $1 trillion in 2023.
WATCH: Early Bridge investor weighs in on $1.1 billion Stripe deal
Thinking about upgrading your EV? Rivian (RIVN) launched a new promo on Tuesday, offering up to $6,000 to upgrade your R1S or R1T. Here’s how you can snag some savings.
Rivian R1S and R1T upgrade deal offers up to $6,000
Rivian delivered over 51,500 vehicles last year as the EV maker gains momentum. Although it was only slightly higher than the ~50,100 delivered in 2023, Rivian is expected to see even more growth this year.
After shutting down its Normal, IL manufacturing plant last April and renegotiating supplier contracts, Rivian has seen “significant cost improvements,” according to CEO RJ Scaringe.
Rivian also began delivering its next-gen R1S and R1T models last year. The new Large and Max battery packs have redesigned modules and more efficient packaging, “making them easier to manufacture and service.” For example, Rivian’s new EVs use seven ECUs, down from 17 in the first-generation R1T and R1S.
With new plant upgrades, reworked supplier contracts, and more efficient vehicles, Rivian is now passing the savings on to customers.
Rivian introduced a new promo on Tuesday, offering up to $6,000 to upgrade your R1T or R1S. The bonus amount varies by trim:
- Tri with Max battery: $6,000 USD / CAD 8,600
- Dual with Max battery and Performance upgrade: $4,500 USD / CAD 6,500
- Dual with Max battery: $3,000 USD / CAD 4,300
The offer is for current R1T or R1S owners or lessees in the US and Canada. Rivian launched the new promo on January 21, and it runs through March 31, 2025.
After you purchase or lease a qualifying vehicle, Rivian will apply a discount toward the MSRP. You must take delivery by March 31, 2025. In the fine print, Rivian stated, “You must request a trade-in estimate to qualify for this offer, but trade-in of a vehicle is not required.”
Any other models are excluded from the offer. These include Dual Standard configurations, Dual with Large battery configurations, custom builds, demo vehicles, and pre-owned vehicles.
The new offer follows Rivian’s previous upgrade promo introduced last October, giving qualifying gas-powered vehicle owners or lessees up to $3,000.
Check out the Rivian R1 Shop to view eligible models. You can see eligible Rivian R1S here and R1T models here.
Electrek’s Take
Rivian’s R1S was already the tenth best-selling electric vehicle in the US last year, with nearly 27,000 models sold. With more driving range and power at a lower cost, the electric SUV could see even more demand in 2025.
Then again, with the arrival of new luxury electric SUVs, like the Jeep Wagoneer S and Volvo EX90, Rivian will face more competition in the US.
Rivian’s latest promo comes as the Company looks to carry the momentum from the end of 2024 into the new year. The EV maker is offering other deals, including 1.99% APR for 60 months on the R1 Dual with a Max Battery and Performance upgrade.
Even if you are not eligible for the promo, we can still help you find deals on Rivian’s electric SUV in your area. You can use our links below to view offers on the Rivian R1S and R1T near you today.
FTC: We use income earning auto affiliate links. More.
-
Sports2 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports10 months agoStory injured on diving stop, exits Red Sox game
-
Sports1 year agoGame 1 of WS least-watched in recorded history
-
Sports2 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports3 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Environment2 years agoGame-changing Lectric XPedition launched as affordable electric cargo bike
-
Business2 years agoBank of England’s extraordinary response to government policy is almost unthinkable | Ed Conway