Rivian is slashing prices on its base R1T and R1S ahead of the launch of the R2

Rivian is slashing prices on its base R1T and R1S ahead of the launch of the R2

Rivian has slashed prices on its entry-level two-car lineup ahead of the automaker’s launch of its next-generation sedan next month.

After Rivian added two new options to the R1T and R1S ranges last week, the electric truck and SUV maker has also cut prices on some of its lineup. Rivian has cut $3,100 discount of its entry-level R1T and R1S units on its online developersas it has offered new range options costing the same amount.

The base model Rivian R1T and R1S now start at $71,700 and $76,700, respectively, including shipping but before a $3,750 federal tax credit—though buyers can also go for the full $7,500 if they’re leasing.

The price has dropped from the original R1T and R1S prices of $74,800 and $79,800 plus delivery fee,

The news also comes ahead of Rivian unveiling its R2 vehicle platform on March 7, and many in the auto industry have expressed concern about electric vehicle (EV) demand.

“Like every electric car producer with a US presence, Rivian must reconcile past expectations with market realities,” said Karl Brauer, senior analyst at iSeeCars in a statement to Automotive News. “Price continues to be the main reason why people don’t buy EVs, so anything Rivian can do to lower that barrier is a good idea.”

Rivian will begin delivering vehicles with new standard and standard packages next month.

“We are leveraging our product portfolio to offer something new to customers looking to make the transition to electricity today,” Rivian wrote in a press release. “This opens up Rivian ownership to more and more people, which is critical to our mission.”

Rivian will build the upcoming R2 vehicles at a new, future plant in Georgia, and the EV platform is expected to be a smaller, lower-cost and more advanced build.

Unlike Rivian’s price cut, Tesla has also reduced the price of its Model Y for the rest of this month. The market leader has also been offering additional incentives, such as a $1,000 discount for Cybertruck pre-orders, and full Self-Driving (FSD) beta transfer benefits and a lifetime Premium Payback benefit for orders received by March 31 .

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Rivian is slashing prices on its base R1T and R1S ahead of the launch of the R2