ELECTRIC MOBILITY

Rivian Expands Reach with Strategic Leasing Program, Broadening Access and Flexibility for Customers

We chose these launch states based on many factors including where our customers are located and where leasing is most popular.

By Donna Joseph
Nov 29, 2023 4:41 AM • Updated November 29, 2023
Rivian Expands Reach with Strategic Leasing Program Photo by SBR

Rivian took a strategic step on Monday by introducing leasing options for specific models of its all-electric R1T pickup truck, aiming to boost sales and attract a broader customer base beyond early adopters of electric vehicles. The leasing program is currently available to customers in 14 states: Arizona, California, Colorado, Florida, Georgia, Massachusetts, Michigan, Missouri, New Jersey, New York, Nevada, Pennsylvania, Texas, and Washington.

A Rivian spokesperson revealed that the company is collaborating with its financial partner, Chase, for the leasing program, with plans for gradual expansion over time. The selection of launch states was based on various factors, including customer location and the popularity of leasing in those regions.

“We chose these launch states based on many factors including where our customers are located and where leasing is most popular,” the spokesperson said in an email to CNBC.

Leasing options, as per the company's website, are primarily targeted at higher-end models of the R1T, which can exceed a cost of $90,000. This move comes as leasing gains popularity as a flexible way for customers to experience electric vehicles without a long-term commitment. Opting for leasing also makes buyers eligible for the full $7,500 federal tax credit under the Inflation Reduction Act, a significant increase compared to the $3,750 credit available for Rivian purchasers.

The leasing program, classified as a commercial business under the IRA, is exempt from regulations requiring vehicle and battery components to be made in North America. This exemption is notable, as many electric vehicles currently available do not qualify for the full tax credit due to the origin of the vehicles or components.

Rivian emphasized the flexibility and adventure offered by its leasing program in an emailed statement. Earlier this month, the company raised its full-year production forecast by 2,000 vehicles to a total of 54,000 units, attributing the increase to sustained demand for its electric vehicles.


What To Read Next

Private Sector Adds 90,000 Jobs in September, ADP Reports

Private Sector Adds 90,000 Jobs in September, ADP Reports

After a three-month slowdown, job creation rebounded, and pay growth remained solid.
What is the Modern Skies Act, and What Could It Mean for U.S. Air Travel
The proposed $30 billion plan would modernize key parts of U.S. aviation infrastructure nationwide.
This Funding Will Help Reco Expand Sales, Partnerships and Customer Support as More Large Enterprises Move Agents into Production: Ofer Klein, CEO
AT&T’s participation as both a customer and strategic investor reflects the need for security that follows agents across enterprise ecosystems. This funding will help Reco expand sales, partnerships, and customer support as more large enterprises move agents into production.

Business