[subego]

I was just so sad when I saw my first R1T a few days ago.

[reader50]

Originally Posted by subego 

I was just so sad when I saw my first R1T a few days ago.

Any particular reason? I have good impressions of Rivian products, and owner sentiment seems to agree.

Admittedly, I've seen a grand total of one (1) on the road so far, and have yet to look one over in person.

[subego]

That I can’t get it in a two-seater with a full sized bed.

[Laminar]

Single cab long beds are work trucks, designed for real work, purchased by people looking for the most function at the lowest price. Manufacturers are trying to maximize margins on electric vehicles, which means appealing to buyers that are willing to pay high prices for luxuries that automakers can add for very little actual cost like extra seats, electronic features, and luxurious interior materials.

[subego]

I figured they’d be taking a swing at the more utilitarian stuff by now, but of course these are car companies.

[ShortcutToMoncton]

I mean everyone is still mostly losing money on these as far as I can tell. Not a lot of companies in any industry looking to lose even more.

[reader50]

I believe they're calculating losses by: total company spending divided by the number of trucks & SUVs shipped. Something like $35K loss per truck, if I recall correctly.

But R&D overhead, and building factories are initial costs more than running costs. So I'd rather figure the cost-to-manufacture for the R1Ts and compare that to retail price. Then class the R&D + Production investments as capital overhead. The trucks probably sell at a profit over their manufacturing cost.

But I'm not an accountant, and Ford calculates things the same way Rivian does. Ford Blue makes their EVs, and with all the new factory investments, it's billed as losing a ton on each Mach-E or F-150 Lightning sold. Expected to remain that way for a few more years, too.

[Laminar]

I would believe that's why companies are spinning off EV manufacturing as its own division - they can pile the losses of initial investment on that division, protecting the profitability of their ICE manufacturing and giving them the ability to drive a narrative of "EVs are expensive!" so they can justify high prices.