Rivian's Autonomous Tech To Cost $10,000, Yearly Subscriptions $550
0Rivian's Autonomous Tech To Cost $10,000, Yearly Subscriptions $550
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Rivian’s IPO filing continues to reveal interesting details about the EV startup’s plans for the future.
When filing for an initial public offering (IPO) on October 1, the company had to disclose the S-1 document filed with the Securities and Exchange Commission (SEC), revealing financial and preorder information.
For example, we learned that Rivian posted a net loss of $994 million in the first half of this year and racked up 48,390 preorders for the R1T truck and R1S SUV in the US and Canada.
The S-1 filing also hinted at plans for an autonomous driving system and a potential subscription model for infotainment, connectivity, diagnostics, and other services. In the document, Rivian estimated its lifetime revenue (LTR) potential for consumer and commercial vehicles at $67,900 and $64,600, respectively. It also shared its LTR estimates for software-enabled services for consumer vehicles. “We assume the LTR opportunity from software to be $15,500. This is comprised of autonomous driving capabilities of $10,000, and a monthly subscription plan for infotainment, connectivity, diagnostics, and other services valued at $5,500, based on publicly disclosed industry benchmarks.”
Rivian’s SEC S-1 filing The takeaway from this is that the autonomous driving capability could generate $10,000 per vehicle over 10 years, while the subscriptions or membership fees for infotainment and other connectivity-based services could generate $5,500.
However, as the wording suggests, those are only estimates likely based on third-party comparable benchmarks. While third parties often charge for software upgrades, it doesn't mean that is necessarily what Rivian will charge.
Rivian’s SAE Level 3 autonomous driving tech is expected to use the hardware installed for the R1S and R1T’s Driver+ system, a suite of Level 2 active safety features that assist drivers on the road. Driver+ utilizes 11 cameras, 12 ultrasonic sensors, 5 radars, and a high-precision GPS antenna.
Source: https://insideevs.com/news/538676/rivian-autonomous-tech-subscriptions-costs/?utm_source=RSS&utm_medium=referral&utm_campaign=RSS-category-autonomous-vehicles