Rivian and VW's new $22,500 car proves cheap EVs don't have to be low-tech, the Tesla rival's software boss says

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14-05-2025

Rivian is teaming up with Volkswagen to make the German brand's cheapest ever EV: the $22,500 ID.EVERY1.
Its software boss told BI it's proof that cut-price electric cars don't need to be "low-tech."
The race to build more affordable EVs is heating up, with Slate Auto recently launching a $25,000 electric truck.
Rivian and VW are teaming up to build more affordable EVs, but that doesn't mean they're planning to skimp on high-tech features.
The Tesla rival is partnering with Volkswagen to develop a $22,500 electric car, and Wassym Bensaid, the company's chief software officer, said the upcoming EV won't compromise on tech despite its ultra-low price point.
VW and Rivian announced a deal last year that will see the German car giant invest over $5 billion in the startup and form a joint company to develop next-generation software and EV technology, with Bensaid and VW exec Carsten Helbing as co-CEOs.
In March, VW unveiled the ID.EVERY1, a compact electric hatchback that will be the first VW vehicle to include software developed by the joint venture.
The 13-foot-long, four-seater EV is set to go on sale in Europe by 2027 for around 20,000 euros ($22,500). VW has not said whether it has any plans to bring it to the US.
"It's something which is extremely close to my heart because it's a way to bring that technology into many more cars," Bensaid told BI.
"Inexpensive cars shouldn't have low technology, and this is the beauty of the setup that we're enabling through the joint venture," said the Rivian executive, who spoke to BI on the sidelines of The Financial Times' Future of the Car conference.
Bensaid said the affordable hatchback would leverage Rivian's software architecture to cut costs.
Rather than use individual computers to control components like seats, lights, and doors, all the ID.EVERY1's features will be handled by a central computer built on Rivian's technology, which Bensaid would allow VW to save money by using fewer parts and simplifying the design.
The ID.EVERY1 will not be the first vehicle to use technology developed by the Rivian-VW joint venture — that will be Rivian's R2, which is set to launch next year — but it is a huge step for both companies.
A lack of affordable EVs remains one of the main reasons customers are reluctant to go electric, and VW is betting that its cheapest ever battery-powered offering will help fill that gap.
They're not the only ones making that bet. Startup Slate Auto caused a stir last month when it unveiled a $25,000 pickup truck, which is set to go on sale in the US in 2026.
The Slate truck has bucked the trend of vehicles becoming more computerized and packed with smart technology.
The base model lacks power windows, a radio, and any kind of built-in infotainment system, with Slate's CEO telling BI that the company had focused on simplicity to keep the price as low as possible.
So far, consumers haven't seemed that bothered by the lack of bells and whistles, with the Jeff Bezos-backed startup receiving 100,000 refundable $50 reservations in just two weeks.
When asked about Slate's approach, Bensaid said Rivian welcomes more competition in the EV market but has made a "different choice" in how it approaches making electric cars more affordable.
"Inexpensive cars shouldn't be cars with limited features," he said, adding that Rivian believed it was possible to deliver a "rich user experience" at a low price point by making vehicle technology more efficient.
"That is our approach. We would like to enable choice for customers, but without such severe compromise in terms of the overall experience," Bensaid said.
Read the original article on Business Insider