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Caltrans' $97 Million Rivian Purchase Raises Questions on Pricing

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California's Department of Transportation (Caltrans) has ordered 977 Rivian vehicles since June 2025: 638 R1T pickups and 339 R1S SUVs, for a total of nearly $97 million across two orders. The first, placed in June 2025, covered 453 vehicles for $44.3 million; the second, placed earlier this year, covered 524 vehicles for $52.7 million. The Department of General Services (DGS) says the purchase went through competitive bidding and that Rivian's offer was 2% under MSRP. Rivian says the state's price is roughly $1,700 under retail per vehicle.…

🔎 Why it matters: Caltrans' purchase of 977 Rivian R1T and R1S vehicles raises doubts about whether the state got a fair price, given contract records of $77,635 to $91,635 per unit. The DGS contract list identifies the R1T as the only pickup in its light-duty category, which limits competition, w
📈 Upside: According to the DGS, Rivian's offer came in 2% under MSRP after competitive bidding.
📉 Risk: Caltrans has not publicly explained its vehicle selection or provided a full breakdown of the additional costs on nearly $100 million committed.
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