It’s not certain what prompted the lower prices, though it might just be a matter of economies of scale. Scaringe told Engadget in 2018 that the initial production would focus on “thousands of units” and ramp up. Rivian has racked up “such a long queue” since then, according to Scaringe. If the company is better-prepared for production, it could meet that demand (and thus reach profitability) that much sooner.

There’s a strong incentive for Rivian to pursue aggressive pricing. In addition to offering better competition with conventional trucks and SUVs, lower prices could help Rivian attract buyers who might be lured to Tesla’s Cybertruck, Ford’s Mustang Mach-E and other EVs with similar form factors. While Rivian might have a strong backing, it might still need a strong launch to ensure a bright future.