Electric vehicles (EVs) are getting less expensive as more manufacturers introduce vehicles in lower price tiers. China’s BYD overtook Tesla last year as the largest manufacturer of EVs by selling lower-priced vehicles. And now Rivian has followed suit. It seems that EV manufacturers are recalibrating the price-value relationship by offering vehicles designed for lower-price segments. This is an important distinction from merely cutting prices to boost sales or to offset quality issues. As I wrote in Game Changer, pricing cannot solve non-pricing problems. If the predominant problem is perceived quality – perhaps because lifelong ICE (internal combustion engine) owners are apprehensive about vehicle range and access to charging stations – the manufacturers may be better off improving the perception than cutting prices.
Rivian Unveils Two Lower-Priced EVs as It Seeks to Jump-Start Sales