Rivian Customers Express Outrage Over Canceled Electric Truck Model
Rivian announced that it would be canceling its entry-level electric truck, The R1T, in an email sent to customers last week. Rivian customers who had already placed pre-orders felt extremely disappointed by the news, with some going so far as to cancel their reservations in protest. It remains to be seen whether or not these protests will have any effect on Rivian’s business strategy going forward, but it’s clear that the company’s customers feel betrayed by the cancellation of The R1T and that this might have been a bad decision on Rivian’s part.
How Rivian duped us into thinking we’d get an affordable electric truck
The Verge points out that one of the big challenges Rivian faced as it embarked on the second round of funding was whether or not it could deliver its lower-cost electric truck, codenamed Project Silver, in 2021. The answer to that is no: not only did the company cancel its cheapest truck, but now that Project Silver has been discontinued for 2020, the company is raising prices on other models by up to $4,000.
We were duped into thinking we’d get an affordable electric truck! Now with raised prices and a scrapped model on the horizon Rivian customers are furious and concerned about what lies ahead.
Rivian claims to have listened
Rivian customers who were already in the process of purchasing the company’s electric truck model might be even more upset about Rivian’s announcement to cancel that model altogether.
This is what happens when we listen to you, wrote CEO RJ Scaringe in an open letter announcing the cancellation. One commenter on the Facebook post explained the cancellation, saying that though Rivian had made a significant investment in EVs, they found it difficult to compete with EVs coming from European manufacturers.
So much so that they are going bankrupt trying to do so, he said. Another commenter speculated whether or not recent investments and changes might have led to cut-throat internal competition within the company, which subsequently lead to production cuts as well as high costs.
Have they listened?
Rivian is shutting down its most affordable electric truck model, the T60L, and opting to focus on selling high-end performance SUVs instead. The company says the cancellation was because there just wasn’t enough demand for the more low-cost option. They also say they will be reaching out to those who already placed an order for the truck to offer refunds or upgrades to other models.
Customers aren’t buying it and many are expressing their outrage over what they see as a bait and switch.
Several angry customers have taken to social media channels saying that this has killed any faith they had in Rivian and might convince them not to buy another one of their products ever again.
A missed opportunity to increase trust
Rivian customers are expressing outrage after the company decided to cancel its planned affordable electric truck model. Now that the other Rivian models are out of reach for many potential buyers,
the question is whether or not this was a wise move from an economic standpoint. Some believe that expanding its market with a lower-priced EV truck would have helped build trust in Rivian Customers, which will be important if it ever wants to release a pricier SUV model later on.
Rivian Customers decision to cancel its low-cost truck model is a missed opportunity to build trust with consumers and help it compete with other major automakers. If Rivian Customers wants to be a top contender, then it needs to develop more affordable electric cars, whether or not it’s economical in terms of production costs.
Allowing customers who can’t afford a $100,000 luxury SUV an entry point into Rivian Customers will only help improve its brand image while simultaneously lowering costs for those who decide on purchasing an affordable electric car later on.
We’ll see…
Rivian Customers announced the cancellation of its most affordable electric truck model in a statement to USA Today, which sparked outrage and confusion from customers. However, others speculated that the canceled model was just not ready for the market.
Customers have also been frustrated with Rivian Customers pricing structure and lack of clarity on what options are available at each tier. Now it seems clear that the company will not be able to offer an affordable product on its own without a partnership with another automaker or large corporation willing to play ball, so they can avoid putting themselves at risk of bankruptcy if they fail to turn a profit.
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