With Rivian’s billion dollar loss and with the pre-order numbers catching most people’s attention in its recent IPO filing, other important details may have been missed by some. Motor trend explained how the company’s Level 3 Driver Assistance pricing as well as how the company plans to make money on subscription features slipped through the cracks.
First of all, the subscription features. With Following car manufacturers either enter on where make allusion to As car buyers subscribe to features in the future, it looks like you can count on Rivian to have similar plans. A discussion on Rivian Owner Forums details how in the deposit Rivian describes his expected lifetime income for his vehicles. The company defines 10 years as the life of a vehicle and expects $ 15,500 per vehicle in lifetime revenue for subscriber-based features:
Rivian defines LTR potential as the income it can generate from its Rivian vehicles over its lifetime (considered to be 10 years), if the owner, in this case, takes all that is possible. Level 3 driving capabilities are $ 10,000 and a monthly subscription plan for infotainment, connectivity, diagnostics and other services is the remaining $ 5,500.
This brings us to the pricing of driver assistance. Essentially, Rivian vehicles will be equipped with level 3 abilities, but they will unfortunately be stuck behind a subscription. And if Rivian is following Tesla’s playbook, that means either paying $ 10,000 in full or paying a monthly subscription for the feature. This level 3 system is also different from the driver assistance system that Rivians comes standard with.
When we talk about setting up Rivian’s Level 3 Driver Assistance, we’re not talking about Rivian’s Driver +, the “free” version, which is standard on all Rivian vehicles. Driver + is hands-free, but the driver should always be ready to take control of the steering wheel at all times. It supports but does not replace the driver’s attention, judgment and control. This is a set of Level 2 active safety functions that control the engine, braking and steering systems, helping drivers when certain criteria are met.
So this is it. Although Rivian has built an impressive EV pickup, buyers won’t be able to take full advantage of all of its great features unless they shell out hard cash for subscriptions. Looks like the cars of the future could suck.