As a result of low demand, Rivian has dropped its lowest trim level

The cheapest trim level of Rivian's all-electric truck and SUV, the Explore package, has been discontinued due to low demand, according to an email sent this week.

As stated in an email posted first on the Rivian Owners Forum, customers with preorders for the Explore package must reconfigure to the Adventure trim by September 1. Additionally, Rivian explained why it canceled the package and what options customers have.

A $5,500 increase is expected for pre-ordered Explore trim customers. Starting at $73,000, the Adventure package features dual motors and a standard battery pack that provides more than 260 miles of driving range.

The changes angered a few customers on the forum. It is unclear whether Rivian will lose existing customers as a result of the change. Despite this, there is a reported backlog of orders, so it may not matter. 

As of June 30, 2022, there were about 98,000 net orders from U.S. and Canadian consumers for the R1. In the beginning, the R1T truck and R1S SUV were available in two options. The adventure was the higher-priced trim, while Explore was the entry-level package.

The vast majority of customers have chosen the Adventure trim over this configuration. We can streamline our supply chain and ultimately deliver vehicles more quickly by focusing on the Adventure trim package,' the email stated.

A prolonged chip shortage, inflationary pressure, and increases in the cost of raw materials and parts prompted Rivian to raise the price of its R1T pickup by 17% and R1S SUV by about 20% in March 2022. Initial price increases included deposits made by customers.

The company's CEO, RJ Scaringe, backed down from those plans after public outcry and issued a press release promising customers that their original preorder price would be honored. As a result of the planned change, he also offered to restore any canceled preorders.

The price change was part of Rivian's plans to introduce a new dual-motor version of truck and SUV by 2024. Motors designed and manufactured by Rivian are part of the new propulsion system.

With the R1T and R1S, the startup introduced all-wheel drive EVs in 2018 with quad-motor systems that increased horsepower and torque. R1T and R1S were originally priced at $67,500 and $70,000, respectively.