The Rivian R1S seven-seater SUV made its debut in 2022. Big, beautiful and with 835 hp of electric power, the R1S is the stuff American SUV dreams are made of. But back in 2022, when the first models rolled out of the Normal, Illinois plant, it was also expensive, with the top specification First Edition model retailing for more than $90,000. Potential customers considered selling kids, pets and boats to be able to afford to park one in the driveway. Now, four years down the line, you can pick one up for around half the 2022 sticker price.
So how is it possible for a magnificent SUV like the Rivian R1S to lose so much value, in such a relatively short time? The answer involves the sum of many parts that conspired not only against the Rivian SUV, but also the electric car in general. This is that story.
Set Up For Failure?
The 2025 Rivian R1S doing city slicker duty.Rivian
2022 Rivian R1S Launch Edition
Drivetrain
Four electric motors, 128.9 kWh battery pack
Power
835 hp
Torque
908 lb-ft
0-60 mph
3.1 seconds
Range
400 miles (Max battery option)
MSRP
$91,800
The much anticipated Rivian R1S SUV was initially due to go on sale in 2020, at the same time as the R1T truck, with an order book filled with up to 70,000 customers that had already put down deposits. But production of the new SUV was delayed, and with customers champing at the bit, Rivian announced that its new premium electric vehicle would be delayed. The Covid pandemic was mostly to blame, resulting in production delays.
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A new target date was set for 2021, but this also didn’t work out, Rivian announcing that the new SUV will actually go on sale in 2022. Then, a shocker: the company informed customers that the new SUV would go on sale with an average premium of 20% over and above the promised MSRP price point. Considering that some customers had placed their orders as far back as 2018, the news was not well received.
In fact, potential customers were outraged. Thousands of long-standing orders were canceled, while many disgruntled potential customers voiced their unhappiness in no uncertain terms. The outrage did not go unnoticed in the Rivian head office. Electrek reported that Rivian founder and CEO RJ Scaringe had rolled back the proposed price increase for folks who had already placed their orders.
2025 Rivian R1S center instrument stack.Rivian
The Rivian R1S did not exactly get off to a dream start when it finally landed on dealership floors in 2022, two years behind the intended schedule. Still, the large SUV packed such a comprehensive punch, new owners and fans soon forgot about the initial drama around the R1S, focusing on the marvel of the advanced four-motor drivetrain with an advanced torque vectoring system which actively regulates the power delivery for each motor to ensure maximum grip, both on and off the road.
With up to 835 hp in the game, the range-topping R1S can sprint to 60 mph in just 3.1 seconds despite tipping the scale at around 7,000 lbs. Top speed is limited to 115 mph.
The software-driven Rivian R1S was big, luxurious and so fast, it seemed to defy the laws of gravity. But there were problems, too. In time, owners reported software bugs that caused several electronic glitches, while build quality was also not always on par. Other common issues apparently included half-shaft failures (908 lb-ft of torque is no laughing matter, of course), as well as suspension component trouble. The first-gen R1S also has a tendency to destroy its 12-volt battery that runs auxiliary functions.
Rivian Forums members reported that after-sales service was shoddy, and delays in the supply of parts caused extended waiting periods, and some cars spent around six weeks in the Rivian workshop (Rivian apparently did supply rental vehicles for customers experiencing such issues). The quality of repairs also varied greatly from dealer to dealer, further frustrating owners.
The first-generation Rivian R1S was great. But also rather bad. This factor, along with several other elements completely beyond Rivian’s control, would go on to have a significant influence on the SUV’s resale value.
A Second Bite At The Cherry?
2026 Rivian R1S front 3/4 angle in greenRivian
2026 Rivian R1S Quad-Motor
Drivetrain
Four electric motors, 141.5 kWh battery pack
Power
1,025 hp
Torque
1,198 lb-ft
0-60 mph
2.6 seconds
Range
410 miles
MSRP
$121,990
The second-generation Rivian R1S hit the dealership floor in mid 2024. Customers soon noted that Rivian had actually managed to rectify most of the first-generation SUV’s gremlins. The quality of the build and parts was improved, and dealership technician standards were improved. Over-the-air (OTA) updates solved many of the electronic glitches. Rivian’s engineers completely redesigned the R1S SUVs electrical architecture, improving quality and reliability.
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By far and large, the “new” Rivian R1S was a much-improved version of the first-generation vehicle. Which was absolutely great news for customers who bought the Rivian after June 2024. And in this version, the top Quad-Motor version got 1,025 hp of power and 1,198 lb-ft of torque, enabling the big and heavy SUV to reach 60 mph in just 2.6 seconds.
Problem solved, right? Well, if you own a second generation Rivian R1S, yes. First generation versions, not so much. These models have taken a huge knock on resale value.
To further add more oil to the Rivian resale fire, the company started slashing the prices of its products in 2023 and 2024 in order to move cars off showroom floors. It’s far from the ideal strategy if you want to protect resale values.
The First-Generation R1S Resale Cookie Crumbles
2026 Rivian R1S Pebble BeachRivian/Broad Arrow Auctions
In 2022, you had to depart with $91,800 to park the premium Rivian R1S First Edition model in your driveway. This model came with all the bells and whistles, as well as an electric motor for each wheel for a combined output of 835 hp. Today, the picture looks very different.
Now you can buy the same Rivian for around $52,730 (sample of six First Edition models listed for sale). That represents an average of 42.6% value lost in just four years. Great news if you are in the market for a ridiculously fast seven-seat SUV with a couple of problems. But not such good news if you have acquired one of the first-generation Rivian R1S SUVs. Because you stand to lose a big heap of cash when you want to sell it on again.
The “Perfect Storm” Hits The EV Segment
2022 – 2026 Rivian R1S SUV exteriorRivian
Rivian’s first-generation R1S SUV may currently be the best used electric SUV on sale in the USA. All that technology, luxury, power, space, speed… it offers a heck of a lot of SUV for the money.
Meanwhile, various other factors are influencing the overall decline of the North American electric vehicle market. Rivian reported that 2025 sales were down 36% on 2024 numbers, as electric vehicle sales in general slowed down across the world. So much so that many of the world’s top car companies have walked back their EV research and development programs and shifted budgets back to internal combustion engines, traditional hybrid models and, possibly the next best thing in the world of the car, range extender EVs (with an on-board internal combustion engine generator).
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A $7,500 tax credit program for EV cars expired in September 2025, and chances that the current federal administration will reintroduce such a credit seem rather slim. New federal legislation introduced at the end of 2025 also killed off strict emission control regulations introduced in 2012, opening the door for the internal combustion engine to stay in the game for several more decades, at the very least. Or until a new administration changes things again. But this regulation update gave the electric vehicle market another bloody nose.
2026 Lucid Gravity Touring ExteriorLucid
As a result, electric car companies are not exactly in the pound seat at the minute, with share prices and resale values dropping at an alarming rate. American EV startup Lucid is also feeling the pinch… by the billions. In 2025, Lucid reported a substantial $3.5 billion loss. This after the company also shed $3 billion in 2024. It’s not a pretty (financial) picture, to be sure.
As for Rivian, much of the company’s future hopes are pinned on the upcoming new R2 compact SUV. The smaller R2, due to arrive shortly on Rivian showroom floors, will start from an estimated $45,000, ensuring a much broader appeal. The R2 is expected to get to 60 mph in less than three seconds and will have a range of more than 300 miles. Time will tell if it is too little too late for the Rivian brand but here’s hoping the R2 will be the change the company requires to get it properly back in business.
In the meantime, there is always the first-generation R1S SUV, which is going for a song.
