Rivian Automotive Inc. is witnessing strong demand for its electric R1T pickup and R1S crossover and has no plans to reduce prices like its EV competitors Tesla Inc. and Lucid Motors, according to CEO RJ Scaringe during the company’s second-quarter earnings call.

Scaringe emphasized Rivian’s methodical approach to vehicle pricing, considering various configurations that can significantly affect the price. He expressed confidence in the current pricing, taking into account the product’s positioning, capabilities, and features.

The base R1T starts at $74,800, while the base R1S starts at $79,800. Higher trims with additional features can push the models closer to $100,000. Scaringe mentioned that Rivian no longer provides the exact number of its order backlog but assured that the company has a substantial backlog that will take several months to fulfill at current production rates.

Scaringe highlighted the healthy demand for Rivian vehicles by pointing out the strong residual values of its used vehicles in the truck and SUV segments. Rivian raised its production forecast for 2023 to 52,000 vehicles, citing improved supply-chain constraints.

While competitors have been reducing prices in the EV market, Rivian has chosen not to follow suit. Scaringe mentioned that EV transaction prices have been falling this year, with Tesla and Lucid Motors implementing significant price cuts. Sales incentives on EVs have also increased.

Rivian reported a net loss of $1.2 billion in the second quarter but noted a significant improvement in gross margins compared to the previous quarter. The company expects a smaller operating loss in 2023 and aims to drive costs down across the business to achieve profitability.