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David Shultz is a freelance writer who lives in Santa Barbara, California. His writing has appeared in The Atlantic, Outside and Nautilus, among other publications.
In a letter yesterday to customers who've preordered the vehicles, Irvine-based EV startup Rivian gave notice that it will no longer offer the most affordable versions of its electric vehicles.
The “Explore Package” was to be the entry-level version (or “trim” as it’s called) of Rivian's R1T electric truck. Though the base model had yet to hit the market, it was slated to cost $67,500. Now, buyers—even those who preordered—will have to shell out at least $73,000 for the next trim up, the “Adventure Package.”
The upscaled version of the truck has better speakers, better seats, some interior options and off-road upgrades like tow hooks and floor mats. The battery remains unchanged.
Rivian says it made the decision to axe the entry level due to limited interest in the offering and a desire to streamline production. The company says the move will allow it to build more vehicles more quickly. Rivian is less vo al about this move will allow it to charge an extra $6.5k for each Explorer trim car it converts to Adventure. While some of that cost is assuredly due to the upgraded components, it’s no secret car manufacturers typically make the best margins on their high-end offerings.
There are two ways to view this move:
1. It’s undoubtedly a smart business move from Rivian. Streamlining production is essential if the fledgling company is going to hit the 25,000 vehicle production target that it recently reaffirmed in its Q2 earnings call. It’s probably good news for investors as well. The company may lose a few preorders from customers who were set on the $67.5k price point, but Rivian is already building as many cars as it possibly can every day, so anything that increases vehicle price increases how much revenue Rivian makes. The company has to survive until its new plant opens and production on its more affordable R2 model can get underway. Any move that ensures survival in the short term is a good long-term play.
2. The decision is a big middle finger to customers and shows Rivian hasn’t learned its lesson from last spring, when it incited buyer's rage by reneging on the cost of its trucks. It also adds to the growing list of ridiculously expensive EVs that are aimed at the very wealthy, leaving middle class would-be EV buyers up a creek. The new price hike also puts the majority of Rivian’s models outside the $80,000 price cap for the Inflation Reduction Act rebate. For all the company’s commitment to sustainability and vegan leather, wouldn’t it just be better for the environment to get cheaper cars into the hands of everyday people at a lower price point?
The truth, as usual, is probably somewhere in the middle. You can’t build a fleet of Earth-saving electric vehicles if you can’t stay in business. Then again, if your Earth-saving vehicle has to cost $73,000, you’re not saving anything except for the conscience of a few rich people.
Fingers crossed for that R2 though.
David Shultz is a freelance writer who lives in Santa Barbara, California. His writing has appeared in The Atlantic, Outside and Nautilus, among other publications.
Christian Hetrick is dot.LA's Entertainment Tech Reporter. He was formerly a business reporter for the Philadelphia Inquirer and reported on New Jersey politics for the Observer and the Press of Atlantic City.
When avatar startup Genies raised $150 million in April, the company released an unusual message to the public: “Farewell.”
The Marina del Rey-based unicorn, which makes cartoon-like avatars for celebrities and aims to “build an avatar for every single person on Earth,” didn’t go under. Rather, Genies announced it would stay quiet for a while to focus on building avatar-creation products.
Genies representatives told dot.LA that the firm is now seeking more creators to try its creation tools for 3D avatars, digital fashion items and virtual experiences. On Thursday, the startup launched a three-week program called DIY Collective, which will mentor and financially support up-and-coming creatives.
Similar programs are common in the startup world and in the creator economy. For example, social media companies can use accelerator programs not only to support rising stars but to lure those creators—and their audiences—to the company’s platforms. Genies believes avatars will be a crucial part of the internet’s future and is similarly using its program to encourage creators to launch brands using Genies’ platform.
“I think us being able to work hands on with this next era—this next generation of designers and entrepreneurs—not only gets us a chance to understand how people want to use our platform and tools, but also allows us to nurture those types of creators that are going to exist and continue to build within our ecosystem,” said Allison Sturges, Genies’ head of strategic partnerships.
DIY Collective’s initial cohort will include roughly 15 people, Sturges said. They will spend three weeks at the Genies headquarters, participating in workshops and hearing from CEOs, fashion designers, tattoo artists and speakers from other industries, she added. Genies will provide creatives with funding to build brands and audiences, though Sturges declined to share how much. By the end of the program, participants will be able to sell digital goods through the company’s NFT marketplace, The Warehouse. There, people can buy, sell and trade avatar creations, such as wearable items.
Genies will accept applications for the debut program until Aug. 1. It will kick off on Aug. 8, and previous experience in digital fashion and 3D art development is not required.
Sturges said that the program will teach people “about the tools and capabilities that they will have” through Genies’ platform, as well as “how to think about building their own avatar ecosystem brands and even their own audience.”
Founded in 2017, Genies established itself by making avatars for celebrities from Rihanna to Russell Westbrook, who have used the online lookalikes for social media and sponsorship opportunities. The 150-person company, which has raised at least $250 million to date, has secured partnerships with Universal Music Group and Warner Music Group to make avatars for each music label’s entire roster of artists. Former Disney boss Bob Iger joined the company’s board in March.
The company wants to extend avatars to everyone else. Avatars—digital figures that represent an individual—may be the way people interact with each other in the 3D virtual worlds of the metaverse, the much-hyped iteration of the internet where users may one day work, shop and socialize. A company spokesperson previously told dot.LA that Genies has been beta testing avatar creator tools with invite-only users and gives creators “full ownership and commercialization rights” over their creations collecting a 5% transaction fee each time an avatar NFT is sold.
“It's an opportunity for people to build their most expressive and authentic self within this digital era,” Sturges said of avatars.
The company’s call for creators could be a sign that Genies is close to rolling out the Warehouse and its tools publicly. Asked what these avatar tools might look like, the startup went somewhat quiet again.
Allison Sturges said, “I think that's probably something that I'll hold off on sharing. We will be rolling some of this out soon.”
Christian Hetrick is dot.LA's Entertainment Tech Reporter. He was formerly a business reporter for the Philadelphia Inquirer and reported on New Jersey politics for the Observer and the Press of Atlantic City.
Christian Hetrick is dot.LA's Entertainment Tech Reporter. He was formerly a business reporter for the Philadelphia Inquirer and reported on New Jersey politics for the Observer and the Press of Atlantic City.
LA Tech Week—a weeklong showcase of the region’s growing startup ecosystem—is coming this August.
The seven-day series of events, from Aug. 15 through Aug. 21, is a chance for the Los Angeles startup community to network, share insights and pitch themselves to investors. It comes a year after hundreds of people gathered for a similar event that allowed the L.A. tech community—often in the shadow of Silicon Valley—to flex its muscles.
From fireside chats with prominent founders to a panel on aerospace, here are some highlights from the roughly 30 events happening during LA Tech Week, including one hosted by dot.LA.
DoorDash’s Founding Story: Stanley Tang, a cofounder and chief product officer of delivery giant DoorDash, speaks with Pear VC's founding managing partner, Pejman Nozad. They'll discuss how to grow a tech company from seed stage all the way to an initial public offering. Aug. 19 at 10 a.m. to 12 p.m. in Santa Monica.
The Founders Guide to LA: A presentation from dot.LA cofounder and executive chairman Spencer Rascoff, who co-founded Zillow and served as the real estate marketplace firm’s CEO. Aug. 16 from 6 p.m. to 9 p.m. in Brentwood.
Time To Build: Los Angeles: Venture capital firm Andreessen Horowitz (a16z) hosts a discussion on how L.A. can maintain its momentum as one of the fastest-growing tech hubs in the U.S. Featured speakers include a16z general partners Connie Chan and Andrew Chen, as well as Grant Lafontaine, the cofounder and CEO of shopping marketplace Whatnot. Aug. 19 from 2 p.m. to 8 p.m. in Santa Monica.
How to Build Successful Startups in Difficult Industries: Leaders from Southern California’s healthcare and aerospace startups gather for panels and networking opportunities. Hosted by TechStars, the event includes speakers from the U.S. Space Force, NASA Jet Propulsion Lab, Applied VR and University of California Irvine. Aug. 15 from 1 p.m. to 5 p.m. in Culver City.
LA Tech Week Demo Day: Early stage startups from the L.A. area pitch a panel of judges including a16z’s Andrew Chen and Nikita Bier, who co-founded the Facebook-acquired social media app tbh. Inside a room of 100 tech leaders in a Beverly Hills mansion, the pitch contest is run by demo day events platform Stonks and live-in accelerator Launch House. Aug. 17 from 12:30 p.m. to 3 p.m. in Beverly Hills.
Registration information and a full list of LA Tech Week events can be found here.
Christian Hetrick is dot.LA's Entertainment Tech Reporter. He was formerly a business reporter for the Philadelphia Inquirer and reported on New Jersey politics for the Observer and the Press of Atlantic City.
Christian Hetrick is dot.LA's Entertainment Tech Reporter. He was formerly a business reporter for the Philadelphia Inquirer and reported on New Jersey politics for the Observer and the Press of Atlantic City.
“Moves,” our roundup of job changes in L.A. tech, is presented by Interchange.LA, dot.LA's recruiting and career platform connecting Southern California's most exciting companies with top tech talent. Create a free Interchange.LA profile here—and if you're looking for ways to supercharge your recruiting efforts, find out more about Interchange.LA's white-glove recruiting service by emailing Sharmineh O’Farrill Lewis (sharmineh@dot.la). Please send job changes and personnel moves to moves@dot.la.
Respira Technologies, a venture-backed health tech company, promoted Brian Quigley to chief executive officer. He was formerly the company COO.
Visual effects and animation studio DNEG tapped Academy Award and BAFTA winner Janek Sirrs as visual effects supervisor. Sirrs also worked on several Marvel movies including "Doctor Strange in the Multiverse of Madness" (2022).
EV company Faraday Future welcomed BMW exec Mathias Hofmann as head of global supply chain.
Michael Gilbert joined ePost Global—an international shipping solutions provider— as director of sales. Previously, Gilbert served leadership roles at Newgistics, DHL and Oracle.
Visionaire Lighting, an electronics manufacturing company, promoted former director of marketing Jeremy Streit, as vice president of West Coast and Florida sales and former lead regional sales Carter Clark to vice president of East Coast sales. The company also hired Paul Turturillo and Brian Baker as regional sales managers. Turturillo previously worked as regional sales manager at Wagner Architectural Illuminated Railing Systems, while Baker served as a contractor for Architectural Lighting Alliance.
Education technology company GoGuardian added Teach for America CEO Elisa Villanueva Beard to its board of directors.
Toragen, Inc., a biotechnology company, appointed Cactus Feeders founder Paul Engler to its board of directors.
Christian Hetrick is dot.LA's Entertainment Tech Reporter. He was formerly a business reporter for the Philadelphia Inquirer and reported on New Jersey politics for the Observer and the Press of Atlantic City.
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