You may soon be able to lease a Rivian electric vehicle. Rivian’s CEO, RJ Scaringe, spoke about leasing and how it could unlock more price incentives for customers at Morgan Stanley’s 11th annual Laguna Conference.
Rivian has intentionally held off on leasing because of its confidence in its vehicle’s residual values, according to Scaringe.
Scaringe explained how the company finds the used marketplace as a “healthy check” of pricing. As he added, if vehicles are selling for more than our MSRP, that means there could be some pricing room. It could also mean demand is higher than supply.
Although it’s “frustrating,” some people are buying Rivian’s and selling them the next day to make a profit.
Is Rivian EV leasing coming soon?
However, prices after six months or 12 months of being sold are useful metrics to gauge the “sustained robustness of demand.” It’s also “very valuable for us to unlock leasing,” which Rivian does not offer yet.
Scaringe says Rivian’s market-leading residual values will lead to “exceptionally strong leasing packages.”
When asked about the Inflation Reduction Act’s (IRA) application, Rivian’s leader explained, “It works great for leasing.” He added, “$7,500 does work.”
Scaringe says this will create some interesting ways to access more price incentives for customers.
Rounding the corner
After crushing expectations in the second quarter, delivering 12,640 vehicles, Rivian’s CEO believes the company has “rounded the corner.”
Deliveries climbed by a massive 60% compared to the first three months of the year, while production expanded by 50%.
Perhaps, more importantly, Rivian’s gross profit per vehicle delivered improved by $35,000. Scaringe says the cost improvements are coming as the company utilizes its Normal, Ill factory more efficiently.
The EV maker has some exciting updates coming in the first half of 2024, including new features and cost-saving programs that will lay the foundation for its next-gen R2 series.
Scaringe believes the company has an advantage with vertical integration, especially regarding software and tech. By owning the hardware and software stack, Scaringe explained, they can provide a more holistic experience. The company can roll out features much more seamlessly.
For example, Rivian just rolled out a new OTA update that improves the ride quality in both the R1S and R1T across all drive modes.
Meanwhile, traditional automakers are limited to components from multiple third parties, making it hard to cross-leverage and update efficiently.
After the progress achieved over the past few months, Rivian raised its annual production guidance to 52,000, up 2,000 from its previous goal.
Scaringe also added that its site in Georgia, where its next-gen R2 series will be built, is close to having all grading complete. Early next year, the building will begin going up while the company will start filling it with equipment through the end of 2024.
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On today’s episode of Quick Charge, President Trump has a wild first day in office, but it’s not ALL bad, either. Plus: Tesla gets diner integration, Hyundai keeps the deal train rolling, and it’s dad’s 80th birthday.
We also look ahead to some possible discounts for Tesla insurance customers, some news on the upcoming “cheap” Cybertruck, and wonder out loud if Puerto Rico’s billion dollar solar project is going to see the light of day. All this and more – enjoy!
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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.
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.
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.
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