Earnings call transcript Q1 2023

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Operator

Good day, ladies and gentlemen. Thank you for standing by. Welcome to the Rivian’s First Quarter 2023 Earnings Conference Call. At this time all participants are in a listen-only mode. [Operator Instructions] Please note that today’s conference is being recorded.

the President to of hand Tim speaker now Vice Bei, Investor will conference your over host, I Relations. Please go ahead.

Tim Bei

Good us for call. you for quarter thank earnings afternoon, XXXX Rivian’s and first joining

reflect this Before begin comments to of matters on management’s we call, as views discussed and including responses today. questions

actual business, that statements considered SEC to will under forward-looking described results our related federal also could involve performance risks financial securities are shareholder statements making and We Such risks filings letter. statements uncertainties and that cause be laws. These uncertainties materially. to operations may today’s differ and be and our in

During this to financial GAAP non-GAAP non-GAAP call, financial measures and in we letter. discuss GAAP has A shareholder of both measures. reconciliation provided will our

call, includes read to the some we letter, over items shareholder on progress our we’ll the around an call. of for recent our months. encourage which the cover of additional details published before I overview it you Just today’s

to begin the turn I’ll remarks. few who with RJ call that, opening a With over will

RJ Scaringe

to delivered Enduro a on integration production, thanks had efficiency. everyone, on the battery during operating would our and year including developments I packs to continuing strong LFP start the as Thanks, ramp as like motor Tim. drivers. our today. us key to for first value team We as key joining discuss highlight our RX quarter well progress the targets, Hello, of and and improved

our Q&A, Operations the Enduro of Klein, Chief Officer, our Frank Officer; asked launch join Product I’ve our the platform. and importance to given Nick quarter, for and Development This motor Chief of us ramp Kalayjian,

RXT rating the RXS only from joining RXS electric XXXX. to this This award was this our large the awarded RXT achieve pickup the the safety of SAFETY TOP PICK+ earned in our IIHS, only and makes Last rating earlier year. SUV which the the highest week, possible

quarter, production. quarter-over-quarter continued first growth vehicles, X,XXX we the in RX During produced which reflects

the since XX,XXX XX, produced March now we’ve start As of nearly vehicles of production.

our further platform. successfully drove our ramp platform team commercial ramp in improvement the of consumer into while Our technologies new launching

Production as are during of our the in units. quarter with line we for production result, year expectations, outlook and first reaffirming was XX,XXX the our total a

and maps progress the In addition on first technology quarter. production, during made development road we significant our product to

our our call, first took down drive LFP As described during in-house we the our EDV for and battery well line as earnings to last the units of implement quarter packs. most as

our and internally designed Enduro points Our the thousands our of rapid process. developed is greater aid This over parts our control robotics. equipment platform and the manufacturing offers to first production line software all bring of in our use platform equipment across data of plant into up visibility

our that in Enduro’s in providing result cost will bill a improvements reduction of materials. significant

configuration of a market by lower-priced motor We expect vehicles motor into during variants. the implementing XXXX, to start as contribute our enabling will expanding future the to dual second which quarter RX Enduro our addressable RX

bill XX%. a the EDV introduction approximately As us in pack LFP battery materials to and the by Enduro EDV reduce the reference, of of enabled

for our production Our experience. and platform cost developing RX ramping customer unchanged. reductions, RX outstanding and focused an technologies the for core future are platforms, team XXXX remains RCV delivering The priorities end-to-end on driving and

the our is vehicle cost Illinois. improves to profitably. realizing plant vertically Normal, path leverage of our sell lever cost our crucial large-scale structural in at advantages strategy primary fixed long-term each integrated Growing volume manufacturing This the represents on production to and

agile While a challenges more remain, this stronger, we’ve through process. become company

vehicles ability is to The duration linked profitably. produce directly magnitude our of and to our impact

indirect material as and such capital key efficiency to of our costs battery maximize in We of LFP sense of expenditures. designed have a across strong packs logistics, well integration this cost driving technologies as overhead, labored enabled lower goal, achieving costs be company-wide by urgency elements and as will Enduro program new costs,

Beyond drive our units compute and development Enduro Much our architecture efficiency, in and RX, updated as focus well network deliver simplified are production, of translates including innovation and sensor doing teams. RX of that’s performance simplified core drive directly to set to improved push range as our our the operational both work we platform.

utilizing help are will long-term and to and maps capture drive ramp smooth We earnings cost RX further of road between alignment of RX drive ensure RX. This efficiencies. to RX a technical help

physical demand Finally, go-to-market purchase and service through service Rivian experience. our our we mobile to grow process we the and This to physical footprint, infrastructure, Network progress continue charging year, expect including Adventure our and drive Rivian customers our additional vehicle. preorder offering and experience our spaces. Further, to opportunities customers drive plan with more Rivian potential demo engagement program, expanding increase by to we for

progress ramping the remainder of the the well developing customer of platforms goals core down, against driving to and our new our drivers positions value production, enhancing experience as executing and for XXXX. costs technologies making as we’re on into Overall, well us continue year

performance Claire operating and QX. to on I’ll that, over for our With details the pass more for call financial

Claire McDonough

Thanks, structure platforms established to material through RJ. to as Enduro such critical Technologies QX well an of segments. enhanced additional to RX. technologies as greater long-term efficiency base market range for will achievements new our that across team’s reduction, are quarters Rivian important The during cost current come benefit and target as achieve vehicle and cost LFP access

the generated. vehicles, quarter which delivered X,XXX first driver the produced of We million results. to of vehicles primary revenue Turning and $XXX our was X,XXX we

we our our XXXX. During gross fourth improved QX which remains XX%. took XXXX, drive focus per Compared delivered efficiency, XXXX, greater profit to vehicle to for of quarter measures

inventory write-downs a of Total losses losses hand on inventory $XXX for due firm which to million for $XXX SG&A and to Cash and expenses. was was million, impacted $XXX $XXX related purchase inventory while purchase firm comprised The on write-downs write-downs million cumulative firm of of commitments. million on LCNRV commitments purchase cash on losses of net is flat, and were on commitments. expenses negative slightly, by charge relative profit the quarter increased R&D gross primarily restructuring

firm entered million, on our fiscal purchase we LCNRV of now into a statement purchased Given QX. $XXX commitments and cumulative will average The due material price flows inventory see cash in of million in in the on reductions $XXX prior charge the million $XX represents a costs significant new and reflected in decrease of versus are and the for primarily charge an our is you year, RX purchase of the increase to firm for quarter selling LCNRV EDV commitments new vehicles.

over we vehicle. in As see inventory sold net by the purchase our net We decreases, commitments LCNRV increase positive on an and our production decrease to cumulative write-down and and cost a Normal gross balances firm associated of end inventory per the LCNRV goods charges reaching in forecast time, plant. XXXX losses in no we at XXXX, therefore, with of have will material expects profit inventory longer expect

XXXX reduction to expenses decreases $XXX related of in $X.X compared of in compensation. quarter the first was the in expenses driver billion million, same to period in last operating to primary operating the fell as year. Total stock-based The

We across investments and driving business. continue also vehicle the cost additional experience and core to in prioritize customer optimization our focus technologies and while

first million EBITDA period restricted of to XXXX the Capital with to negative of of $XXX was negative billion $XXX cash. year. QX $XX.X as quarter last billion cash, same Adjusted were expenditures for equivalents the million first XXXX compared and $X.X in the the quarter $X.X same for last billion during We in period ended XXXX year. as compared cash

to robust key strong sheet steps during took quarter, volatile gross significant growth our while our the to against liquidity a growth RX. positive plans, our including during the is the scaling also allows long-term profit buffer focus us provides path projects. and as XXXX It position. as Maintaining a of to balance industry capital It well on mitigates delivering reinforce Importantly, priority. in launch conditions risk we a

maturity billion to which lending revolving of more announced our doubles notes $X.X availability assets improved permitted amendment facility, In approximately to some commitments capacity. first we XXXX, provisions of XXXX, by $X.X proceeds expand mid-April, on an green During the efficient XXXX, in our generated debt convertible to increases to borrowing the which available revolving quarter we and the senior current asset-based billion. credit issued indebtedness due extends

these maturity the $X.X liquidity of the reflective XXXX our approach billion, transactions provide with to by debt business. launch are these aggregate, Rivian’s have and XXXX. have confident of In sheet we approach the operations remain diversified balance can launch we as We strengthened believe cash in our RX increased through that fund of funding our over beyond additions, profile recent RX and

I to XXXX. profit QX opportunity our want gross reiterate also this XXXX take QX to bridge to from

continue We target in XXXX. to positive gross profit

improvement impact firm of the will be expect half commitments, and installed of and greater the our of by utilization driven volume we Excluding capacity. approximately purchase LCNRV

is half reduction. of further selling between volumes and production a guidance units which prices lower in we fixed XX,XXX utilization, result significantly material production Our capacity will cost doubling increase of in increases to implies The and cost XXXX. per remaining vehicle, in expect average XXXX split

material LFP battery of will delivered commercial reduction and the by new packs, versus such cost our be Enduro QX QX. XX% which vehicles costs for about material Lower enabled in a integration as technologies

savings In to with addition our we we design-driven cost the to as reductions commercial engineering also realize negotiate cost suppliers. expect

based base average improved improvements fulfillment introduction performance gradual that as to and the as new XXXX The as pre-March of of increase the in is well selling upon achieve expect we preorder prices produced the we our complete capabilities. technologies

half. per significant is cut with expected delivered While QX margin represented loss versus XXXX, QX profit remain nearly progress in negative XXXX gross in to gross vehicle

selling to prices. due goods sold was of average improvements and higher This cost

During of cost from versus XXXX, quarter LCNRV, freight costs QX lower first the material XXXX. benefited sold and goods of

quarter expect these persist any throughout vary, for may particular performance XXXX. we to While trends

all of we and of guidance units guidance. billion, which production reaffirming aspects total XXXX XXXX. of versus are XX,XXX reaffirming million of improvement notably, an Most represents XXXX $X.X XXXX negative $XXX We vehicle our are EBITDA

billion. will we capital expenditures for be Additionally, expect XXXX $X

confidence approximately gross our EBITDA free a target. path cash closing, margin I target target, in to XX% approximately to margin financial want and long-term see our clear margin XX% flow In We our high reiterate targets. teens

me the open over Q&A. let that, to operator turn for the back up the to line call With

Operator

America. [Operator you. Now Bank the of Thank line first with Murphy coming of Instructions] from John question

Your line open. is

John Murphy

Good afternoon guys.

question strategy, and RJ, the vehicle of ask not a that way. good opportunity. opportunity of some lifetime profitability on the pricing. to holistic I the my folks at of on view you’ve view taking revenue of on "Hey, revenue entire back lifetime kind make that and a money and a really I that and the on price from are pretty wanted in are mean, thought profit vehicle and looked that can up I listen, end make sort I much cut Just about have first think the your And saying, that it upfront There that.

you’re if just that, like talking something about of I’m and the the running question, a the you sort and part it and you maybe of pricing. of then would company philosophy a embracing raising curious, think about of strategy as think second ever that as

you’re So protection? opposite kind the preorders XXXX going the about that of the pre-March we How cadence direction. think should of the the price of in roll-off had

RJ Scaringe

I as Thanks, really case product. John. here think, questions of about think It’s our the we the vehicles. relevant for is – In us pricing are, this of flagship RX, these

from introduced we’ve a we unit, pack, price going with and which also a RX, view, with with quad and introducing large drive product motor several introduces introduces motor. which Enduro to point be we’re entry our launching be it a And over pack configuration. the next will of our our Max what the Enduro our variances higher So course flagship call months, over

data, in comes variants the looking And it also for both range some of is we see for customers to time. at price customers portion looking get our the variants, And us, on and pricing and but best our when performance. platform to so they’re maximum with the going terms for. be lower of same significant the offering really a what giving of growing this to important wanting customers the that giving are RX for some And best maximum of we’re

so forward are Max to ASP. to looking out contribute getting that really pack we And growing there, will and the

come orders pre-March as orders naturally lower year. as have and off of already to as that’s you to of noted, said, orders, shift we seeing and newer first the this a to But or the we’re going post-March X in the those Claire other price orders pricing growth that in up, is start element into start QX

those RX us lot two confidence give the in together over for growing of a So platform. time ASP

noted say, with of in the This terms driving we we the my sale. initial as and think a I which work updated sensors, of lot should us, well. ability as opportunities business variants really software platforms, in into course, our to products broadly over about what technology set, beyond the also revenue now we’re compute, as our in self-driving and as to Level building strongly at of And making the sensor is lot our believe it’s opening look is X, stack, will platform feature we’re future Level we something more autonomy. right around enable of comes I to only new but it not when and allow as updated investment importantly, next-generation future comments, set a full underway well Now our X as for and monetize deliver

we So meaningful see the the And are recurring certainly above term. create that part beyond other self-driving, business revenue. long as and of in opportunities there to

financing those, And already initiated to of started of we’ve have. product, some that with and some with insurance the launch our products we

products. business, the as pointed So across out, you do the life we very holistically the of cycle see

John Murphy

to cut get software and sort time. hardware you to services over would over drive end side profit Just the RJ, the the time back front price on on to the sale of follow-up, never

you the you believe and back in margins returns end, earn end. fair even to front the this a have You adequate opportunity need statement? Is on that though

RJ Scaringe

RX and in I’m to that. do For But – us longer we’ll evolves, portion. talk today platform, isn’t – our to with the – as sure have strategy business about certainly we’ve the been term, this the Q&A this

to We’re cost That’s how platform. the RX but It’s drive to a from driving thinking part facilitate opportunities. amount a network efficiencies we’re about long-term our tremendous streams focus efficiencies revenue give to flexibility how look topology across also to obviously, everything into That’s vehicle, us vehicle on architected. to easy and lower-priced the how [ph] at is much looking architecture at different in different vehicle the revenue we’re consolidation. putting of cost

RX, post-March we’re on new stands feature we will – of us things of as both continuing X it continuing a access I allow expanded and customer that the to fully start, Max to bring grow set reiterate to as ASP and we as at be do But expand as the because number pulling customers offerings the pack in well like certainly, see demand. to

John Murphy

launch saves actually as and could kind as virtual just future Okay. the of money? Enduro far the used launch. one you follow-up motor means? I you factory that And process the that Can use how in if ask you the in and on explain for you And just much technologies that here can that time what how

RJ Scaringe

Yes, this is an important development.

consolidation product of of simplification. smoothly. about and design But seen of innovations, very terms gone not which been and calls, sort we’re what’s of manufacturing our part has schedule. as Enduro we’re a both previous talked teams represents integration how well the working of of the It’s line part overall in embodiment has we those of or full Our close really in team teams for product in lot its a in to manufacturing engineering what of and is hard we’ve capable up bring ahead us led the believe necessarily as engineering – the in it between terms this

actually great curve, thing. is a of our which ramp We’re ahead

of we’ve variety plant a view. seamlessly teams, what software to an by the more the all the a seamlessly platforms up things. we and much that I can seamlessly when those working control the access extraction careful equipment to we But and more And third-party do lot equipment us the can opening a much we associated we’re equipment point the effectively that allows more all controllers of all robotics platform from much than creating seamlessly bring layer by in of through referred but with really developed been bring PLCs, very that facilitated to also from comments, a the up planning that’s and

John Murphy

you Thank much. Very interesting. very

Operator

Stanley. Thank line And from question next with of coming Adam the Morgan Jonas our you.

Your line is open.

Adam Jonas

everybody. Hey

question my for So first is Frank.

as up risk on think Thanks, the where the what You’re Normal? coming see at one out COO. greatest you as months, efficiency here? When from the you to opportunity point XX Frank. about you greatest year And improve execution the do company would to at next

Frank Klein

RX really the the the mean I think, RJ down the driving to for a and together working I in of anticipate on on the expectation year advantage next also being the our as QX as the certainly Adam, as to half line. in line our see next competitive that. this us ramp-up my generation team, last already, you’ve shown second numbers should with certainly cost, capacity. continue we certainly really see we Thanks, the question. and already Claire XX already And we really that month the few jointly and this continuing on priority, focusing And Normal, we a platform. in Yes. is mentioned, numbers, preparing the the ramp-up installed the give production we are is, will of will RX in Nick And ramp-up already and really for that months are of seen preparing close we’ve with RX the

Again, mean currently and paying a on initiative, cost on be our should we I significant we we’re the what paying. gap what still suppliers yes, see

what last months and is few discussions done starting them the engage the have with the So gap, next supplier we on gap the show within single closing to every in few the we’re months. and to working

have my a So think this in really great is place. plan I priority, we

right a we that for put as the executing me, plan team. it’s just together So now, literally

Adam Jonas

Thanks, just a Frank. And follow-up you. RJ, for

the exclusivity some at Now customers that you commercial last high on months? the few status of to able other with you’ve in update provide EDV. on been released Thanks. a Are discussions any level

RJ Scaringe

Adam. Thanks,

of these set negotiations, the are point the terms for a customer other space. And focus these you beyond continue customers, especially into point, of some commercial and of really see in larger we We’re, production long the with at all contracts. And Amazon. do needs know, time in lead broad from as exclusivity looking a to discussions of this view single on

So time and certainly Amazon to for other those the and for on have allow play underway working as customers long-term closely been very possible. into it’s pursue been been now, the with some we’ve these to platform, something as plan quickly us

Adam Jonas

Thanks, RJ.

Operator

from you. line next our Gianarikas coming George question the Thank with Canaccord. And

open. line Your is

George Gianarikas

are the for color coming help from some everyone. afternoon mentioned with a expiring. XXXX if the could more in my good your have Any commodity understand us was Thanks additional a little EV you bit taking prices I of you’d Hey appreciated. little granularity, could wondering in, contracts greatly be questions. to you that would XXXX, past leverage

RJ Scaringe

This in vast comment, a our – time a but of our were important. bit his materials lot frame. contracts Frank of it started is when in of bill previous XXXX, production, negotiated referenced XXXX in the the majority we from

night before wind that started So forward the is the engagement and we to few we have we level production. of day. the through we have excitement leverage And didn’t it’s today. that today, absolutely was as years Certainly, and from that a have negotiating – suppliers we clock

of So a profitability. there’s drive tremendous towards passion us help amount towards drive – to

Really, suppliers partner us well. as forward are RX, but as about not see certainly significant about just and very the are platform RX the going as excited excited a

Frank are up paths partners also talked to working these real very set happening with relationships targets that rapidly are the negotiations to about, appropriate profitability our as down cost long-term profitable be So but our time, to on to RX. achieve in achieve RX the closely and find and to we’re

George Gianarikas

on Thanks. durations platform? for for the Frank, [ph] timing pack curious follow-up, a asking RX As Max the for any

Frank Klein

Yes. My asking a lately, been has dad lot too. that me

for forward. of and amount the Max tremendous pack that a to excitement we bring there’s hard working think very are I So

ASPs. I it helps certainly noted the think also as beginning, us at grow I

possible. of addition as in Max my reasons friend of satisfaction So and in there’s a to lot pack pulling quickly as your

George Gianarikas

Thank you.

Operator

of Thank Rod And Research. question with our Lache from coming next Wolfe line you. the

is line open. Your

Rod Lache

side consumer seeing some was on you terms first are talking you’re not of Hi I anymore just backlog business? of able everybody. what color, that know us RJ, be all, of about the hoping, side, I trends demand but to you might on the give that on in

RJ Scaringe

still Rod. backlog well Well, extends into Thanks, Sure. XXXX.

creates XX,XXX engagement are think customers our to of biggest, and vehicles. just level say, a our are the note customers or so really having buyers first the have customers I powerful flywheel we would our satisfaction the with I is important of early most where and here advocates important that the

really Power said, vehicle level the great, is satisfaction that performing see We we third-party through to the so through of ratings, reflective online in And which that with brand. that through and communities highest see had customer that continue the are see was we recognition. the awarded any the with of of it’s that XXXX even forms. J.D. and

build, to full hard so ownership working experiences of the the cycle trying to also experience. life we’re create the We’re across but

this the and brand and do – that to we’re this help brand with to expand I the will work said, that over Now us will earlier, course continue noted of awareness. going year visibility

out, additional continue we’re flywheel demand. infrastructure the of sales flywheel So contribute that, the that awareness physical spaces service building will that growing to infrastructure or we’re that to of out building growing and

Rod Lache

probably and charge, of the this of Great. LCNRV that the we be that. that sure some underlying past, decline took on even Because ex make the in BOM at Thanks for before before profit – with And that that Claire, want million think gross the RCV. I In $XX signs about [ph] so this in look the suggested downtime would you LCNRV the that seeing here we’re quarter. thinking I difference the impact we’re improvement you’ve to correctly? XX% the impact

were on which similar that talked units strokes, delivery you you $XXX versus line X,XXX rate broad a So loss clean say $XXX that the to the to you’re million gross quarter. delivered full year run million run profit of the so over on bit from bridging and Or kind referring or on would a breakeven? And last was is volume guidance? rate you

Claire McDonough

rate That’s on. correct. working we’re the that’s that Rod, run

on QX QX to impact improvement you to of in a the where as And in from quarter-over-quarter profit, be went QX current remarks XX% walk we As prepared XXXX. mentioned gross expect from to noted, saw QX. we my LCNRV QX rightfully the of I we as excluding

Rod Lache

Okay.

– are of confirming you’re What is sounds of do somewhat seeing costs bridge? you your this hydroxide carbonate your bridges how Or you in lithium sort we’re of sort how you it commodities – that. flat And holding bridge about like that guidance factoring into sort think point? are at as your So falling?

Claire McDonough

is normalized commodity would forecast Sure. a that I more of of it characterize for to state the The within costs. XXXX, expectations way QX the guide are

– said we we hydroxide another of as So lithium we, costs, way, in significant material declines in of the have expected – haven’t course commodity last in the lithium the in quarter, cost carbonate. seen though reductions even well.

Rod Lache

Great. Thank you.

Operator

Thank you. And our next question with of Piper coming Alex from the Potter line Sandler.

Your line is open.

Alex Potter

Thanks Great. guys.

first the pack in So data LFP point. on XX% the is a is which reduction result as I materials my Enduro, an the bill interesting question of of and think

with when similar well. out you just it something it big pretty that seems as materials be the RX? margin if technologies rolling could comes on impact alongside has price RX bill I gross on expect hike, start material. the don’t And a know for of like if You those a such impact

RJ Scaringe

for Alex, question. the thanks Yes,

like there, we’ll excited invite talk development. to we’re make that this just a noted, is see innovation when to the QX. reduction going host cost of Nick and the but those way a on a we’re start streams I’d the the to of to bit the line part the a of But XX% work broader the to on work of there’s referenced EDV back QX to for numbers that other RX, driving out, doing As talk Enduro, is about inclusive this big come driving about focused portion set of to lot product as see and that R&D that we really light. of a simplification we’re on, of numbers driving in we’re some a work into we developments important of It’s Claire its starts see that comes in

Nick Kalayjian

Thanks, Yes. RJ.

to drive supply impactful, about beginning last expect and of able Enduro When in EDV unit think see something year. look we of expensive of with reduction to the that we And in quarters really which brings less value. So diversifies next chain, RX deliver on is additional ramp integration is experience over that of next quarter Enduro the similar LFP. the we product as we’ve the XX% our and the the over significantly a and been couple the

Alex Potter

Great. Okay.

Second a what implies, question pretty the that’s guidance, on CapEx. in that I step – guess, maintained you I QX. a pretty spent $X saw but material up you billion that versus

quantitatively, if some money earmarked for So And balance? if just and/or there’s wondering what is maybe to you back of in any defer half? protect order potential Thanks. in talk through that the can the maybe qualitatively cash that to

Claire McDonough

Alex. Sure,

in over remaining As of the And XXXX in prior as the – cadence start levels we guide can calls quarters before $X with for of significantly the you of as implies imagine, talked think about we that higher then our predominantly throughout some we’ve is, that as tooling the XXXX. of And have, expectation investments, course that introduced the think CapEx, well. we’re as to about next-generation billion about significant earnings of technologies will we our to be CapEx us, the throughout importantly, three of going course the year. make

say that’s of would one so primary And spend. CapEx our of drivers I the

utilization then beyond yet not the our service the associated business as out lines centers, nature fully our out to cash is we Enduro that, and have scale of but in that, door build-out go-to-market at as RJ building that the we’re alluded continued of as to continue Rivian. and today, commissioning network, And things infrastructure running aggregate. Beyond charging grow of incremental we where all line, with incremental that there’s the payments of

CapEx is into of defer your the of nature especially second there relative initiation on the XXXX your to Georgia question lumpy sort spend, fall of to and could some likelihood as some given that part off we of availability of Based think of deployment CapEx, certainly XXXX. our that about some CapEx

Alex Potter

Perfect. Thanks guys.

Operator

you. Thank

Our of Barclays. with next coming from Dan line question the Levy

open. is line Your

Dan Levy

Hi. taking Good the evening. Thanks question. for

constraints about said you largest the that the on In was on constraint I Normal. to think production I past, First semi. ask want the power

the want IGBT, carbide tightness just much on both stands. So tight know silicon a silicon we’ve where to get is you for sense I heard supply that challenge of but and used carbide, silicon you? still carbide And a about how

RJ Scaringe

Thanks, Dan.

here of supply we of things – more that diversify we’ve providing also helps embedded with is but with color our modules. comments One bring us a add it us only sort lower-cost Enduro the with regards chain should propulsion drive to in our of doesn’t power it’s platform, the some it up unit, the the and to not

silicon it quad of we’ve our that the both one of So bringing the such being also intentional. in very constraints. silicon ramp major talked on which past helps suppliers constraints we’ve carbide some additional supply, motor as and designed that silicon on alleviate carbide of ramp-up of have existing was about but And IGBT, the we that the

This is that into as a effort team sure modules on long-term spent RX, space. see in there. our power we constraints aren’t also really the look we’re amount that we spending constraints ensure to inverters designing And lot next-generation that that Nick’s make time these and something a some consider of of we to of have this in forward tremendous

Nick Kalayjian

silicon and set we into and sourced was are of into larger, think we silicon The in relationships about both launch we players components that future out for our the those more for and move suppliers, the Enduro comments towards think as base for mature move really configuration a relatively RX. today, we well. those RX we we carbide. today the when smaller build as power with of semis And build capacity supply about who lot original we’re earlier working relevant I a than as our

Dan Levy

case? should variety silicon of is it as ways in guidance your within the which implied, that is increase think, this addressed, addressing patent sort any your say carbide and issue you’re to as a is in then of I fair dramatically, production So

RJ Scaringe

Yes, that’s right.

Dan Levy

you. Thank Great. Okay.

what I and LFP, vehicle talked opportunities question, with material to some somewhat the costs? think RX breakeven? but improve wondering within what you’ve with working help of to further about help know to itself, engineering potentially to try path to de-content you addressed to away opportunities But Second costs. to Enduro other and with suppliers other have you’ve this cut there be reduce de-content or might I the of the the

Nick Kalayjian

Yes.

to tend And pieces puzzle. because of Enduro about LFP I are they’re talk those we So customer-facing. big and the think clearly

and to different impact number the a of reduction. cost to offering on that ability about The continued have RJ the in There’s architecture, of of with lot harness. both in we We’re labor under our And the Frank significant moving a to on packs in the going range have which reduce and the has a the those factory work vehicles. zonal really also that’s on the ECUs talked impacts complexity sure driving cost and content in make configurations. past has vehicle. significant covers drift

body manufacturing also updates at joining cost. a We help and late this of yield are to materials and updates lower series year, to technology improve looking

changes drive We costs Max have involves out again and the coming significant that year a new platform pull battery next some up early part of to manufacturability. and Large that pack pack the the structure really

we’ve means made some of these is nobody notices then things, under customers. the of but – to that these offer these like And architecture So again, our value some goal zonal hood. all success are really the are things changes customer-facing better to

RJ Scaringe

thing to laid the architecture of groundwork note, the the network course, all stack the RX. in the making of our to just the vehicle in electronics and one with vehicles. the it, Nick to think benefits referred – really for of developing and what I I updates doing we’re the other referred we’re software to And the

work all harness. And of the pay derisk naturally vehicle a removing along but the also into these those of number we level we’re of only of not and vehicle set, now but consolidating we reached very launch RX, we’ve maintaining with out a not ECUs maturity, RX. only while that, of so massively use flows from RX, costs lot a simplifying feature As the that

Dan Levy

Great.

Got Thank So you. that. [indiscernible] it. number of

Operator

Mizuho And from our the next you. Rakesh line Vijay with of coming question Group. Thank

Your line is open.

Vijay Rakesh

Yes. Hi.

Just a questions. couple of quick

On Enduro or the be the to mix LFP, the dual-motor, those on will ramp and your shipments as you are assuming those Enduro year you of or? deliveries what

RJ Scaringe

unit. XXX% to case commercial LFP the commercial of In Enduro and drive pack of the the our vans, are vans configuration moving

Enduro, the split. pertains about a a what the be we motor platform, the RX our XX-XX dual-motor call level to it we quad drive between expect As to train and origin,

that capabilities the constraints have is around semi the of down flexibility up heard you may constraints within and We supply is earlier, myself our the flexibility supply come that important. lines to as some. and But production really to flex consideration chain any power from respond Frank key up a that our or production really to

Now will RX call battery pack, our standard we little a but we pack, case in what the of our introducing this be be going to that’s later than year.

Vijay Rakesh

you higher And – it. on ASP the sales. the Got mentioned

vehicles that or... XXst is hire the how April ramping. on wondering Just to post-March your ASP all Xst deliveries Is

RJ Scaringe

Yes. vehicles X towards less, those, start point. post-March lower to we a The and growing of first a we’re it’s work deliver every we actively vehicle of [ph]. mix – we progress have and price with And pre-March reservations one

into we So next post over orders. through those really pre-March X, to quarters the year, get Xst work newer XXXX of March the and hope course

Vijay Rakesh

it. Got you. Thank

Operator

you. Tom coming next from question our Thank Narayan line the of RBC Capital. And with

is open. Your line

Tom Narayan

take that’s the this, Thanks quick just If should year annualize guidance, guidance. full yes. I if cost higher outs. ramp number have your deliveries for EBITDA these a and And question. probably answered a get I it, the Hi, the on guide. apologies below only, you the question the I taking and you know I think, EBITDA X% QX adjusted

guidance to to a cadence that for quarterly as year? full curious there that’s leading Just dynamic the is EBITDA maybe

Claire McDonough

Tom. Sure,

driven we a about key factors. As cadence the think EBITDA overall, couple it’s overall of by

of we and at First XXXX. our position be overall course throughout of running cost while loss foremost, sold the we’ll still are per improving goods a unit,

one rapidly our pertains year, variability, as it down which throughout how go is course LCNRV some we’ll we to we’re taking be reporting. as adjusted the charges year, so of year factor this of in terms course And both throughout we’ll EBITDA the of see that the the the

have that about as at of as then costs key ramp And other as three well expect we material we’ll see we is to the the really drivers think that factor sort the ASP trajectory and improve of at throughout scale but as of drivers year. the each loss to core the greater as those positions we year delivering progresses we’ll continue continuously on albeit vehicles lower we volumes on, be as

Tom Narayan

from of Okay. RJ, wondering be consumer how think trucks particularly in of And just market of offering how market what kind of specifically longer world. as light opportunity kind and the term? a getting change high-level kind Does with competition legacy you about these more long-term question. EVs it kind view increasing for are appears OEMs of view for SUVs. do the OEMs in your – opportunity maybe Or you to wondering kind of Certainly, with you vehicles? legacy competitive that different across these

RJ Scaringe

Thanks, points, we’re segments with demand similar significantly sort priced the in outpacing others Yes. to RX are similar similarly relative price or Yes, Tom. of it’s that product, seeing today, vehicles.

of carry price the And that the offering $XX,XXX have course, into players much are So of is demand we’re that and $XX,XXX. point, this price to we hope features that the at product the seeing are design. products of that approached we’ve And overall And price RX the share. leader really RX platforms, the it brand there range in the with platform. way lower of RX that platform, number the other terms excitement a in of we’ll and point level while to and reflective of overall that

essence of it take product vehicle. we’re flagship terms gear a need level The pets, how inspire excited make folks both your delivers your performance, tremendous to of a capturing of on about a product amount we’ve everything off into thinking with to and fit we unique shown enable and that the in of way we’re with the just the capability product the ventures the and core to about the your is and on kids the regards of it things ability with can of kinds high road, to where you ultimately sort

shown all seen haven’t So we, yet. of We’ve course, it. RX

tremendous have only say amount is. on can we how extension market around of with we confidence we’ve provides asymmetric fits an our the done that what but so RX. it we what really we’re brand – But product and we’re looks the I developing relative information what not and nicely, So like to it addressable have think a to

Frank Klein

Yes.

doing I we deliver mission. what in electric and the we which for focus can this what powertrain. well direction, combined think overall with important vision Legacy platform. OEMs well are the really But on a as sorry, is the to great experience moving of that we’re hardware, extend software customer overall it’s beyond quarter do

product less like The he best world. influencer two for we’ve in SUV Brown, than fact would been the say that and shipping a years Marcus

think vehicle. have and customer a really experience that beyond we being experience software electric differentiates overall just we’re proud We of, and an

Tom Narayan

that’s come. I then launches mean have and relative as the in to today, haven’t of the you guess, I legacy to. in Yes. coming still the a kind as robust, XXXX, see today, think I what we’re the these we a years, more U.S., right? – to was referring referring I in mean of what we seen more. lot really couple especially not – decade, going I specifically, what would further That’s OEMs was to. yet that competition but are obviously, it’s I intensifies obviously, get done yet,

RJ Scaringe

in other in mind the Nick and references, electric. is future, to everything will the think I thing not-too-distant be keep

into vehicle, the cost interplay the structure the ties but together, vehicle, So course, the vehicle, being and software, of referred the manufacturable to the way the It vehicle. a between the point. comes really the the in alone sufficient ultimately product isn’t differentiation drives electric to And and of packaging – the I how electronics what’s the which architecture what the performance building. ultimately we’re of Frank for referred it, dynamic

given the how can significant the So in of the be that experiences in how and offers, electrication change then it though, opportunities create dynamics architect terms the of cost and design the structure new we delivered. does types we vehicle, driving

Tom Narayan

Great. All Thanks. right.

Operator

you. Thank

of with question coming from Picariello BNP Paribas. the Our line James next

your is is open. line line Jim, open. Your

James Picariello

you I me? think the for hear out Can reception me. cut

RJ Scaringe

Yes. can. We Yes.

James Picariello

Okay.

and integrate some given your can remind production you I us Thanks. you saw be RX visibility LFP just lines but RX your into if the what past be to that there’s meaningful Enduro, for impact as And imagine reservations. to quarter? as on going and we think similar EDV to this into into – be the based you an think XX% I on LFP mix just this next what clarify, it the want total we will asked, of about to could savings, have bond was I to tied year, –

RJ Scaringe

split. I vans, unit. in with dual the those we case roughly And be a quad so from to on referenced, be Enduro commercial versus Enduro, of motor expect As XXX% the Drive our an one XX-XX the will motor the of

brought plan while delivered we we line bringing significant and decision of in make to RX with the Enduro both and the propulsion we EDV bring that brought lines really how down QX terms that, of were important note on led we cost ramp the EDV package ramped those the the us Enduro to and also line to to them. up integration savings up up the that In while for Enduro, was LFP it’s

training invite and to EDV just be but feeding on a have of beyond part the equipment, and just I’d and like team how also the design programs will as beyond product before, the it RX comments a the the ramp how Enduro that operations working the now of soon I well plant and of the beyond up the is and we’ve team set around software, is that. how to big few Frank referenced this and as

Nick Kalayjian

ramp-up I the we’re Yes. production beginning exceeding and of the our mean, February curve. at already Thanks, Enduro anticipated ramp-up, started we RJ.

the don’t motors significant the challenges down the line. ahead we we the up into I introducing introducing RX, the on RX EDV of we versus are product. plan is EDV, RX ramping Enduro, And EDV, producing differentiating factor the into RX Enduro the Enduro continuing us. on shut from And that between see So the did while on the

production, We’ve already actually RX, built it several Enduro really test just Motors seamlessly. works the the really into and to

a see on RX the as to of ramp-up product. don’t I as significant we impact introduce So change curve Enduro the a the major RX

RJ Scaringe

Yes.

I the Enduro RXS get customers now – bleeding been or those for a can’t to I’ve few, and for I month, said, driving wait their line produced past on really quite – can the for introduced into we’re an we’ve one hands blending incredible. and we’ve Frank the Enduro, RX. been As it. has it’s the

line Enduro we’ve said, ramped integration intentional the in around managed been well plan how Enduro the So very into and up and how as risk Frank we’ve that the around of we RX. really bring is RX

Nick Kalayjian

ready with ramp team Enduro sure in our and online And preparing lot of make offline we team a well. the emphasis the put have as is that the motor team and and up to really capable to one training the

James Picariello

super Got quick on the any re-rating for and you. Is capacity just first normal Thank plant then half update the helpful. to it. frame next ones. the And there year, incentives time the still of then two is Georgia That’s RX outcome?

RJ Scaringe

line yes, to that opportunity Yes, is Nick the we use on incorporate plan. re-rating first to modify mentioned. line the plan the that also question, We changes on there as XXXX RX the that in technical

So in happen XXXX. this will

one preparation So equipment hand, of on the in this with team. we’re already suppliers the preparing the

going according that’s to plan. So

Claire McDonough

Georgia-related second then of question in your and sided with ago, position. all of state’s tax couple the incentives. on Georgia on And the A it project favor in the weeks ruling for court ruled abatement the the state a over

in court that of the four of So five benefit aspects of overall. appeal, therefore, ruled tax the part the of ruling as Rivian’s the Georgia favor and fund

momentum sit progress today in on here So we great Georgia. as

James Picariello

Thank Congrats. Understood. you.

Operator

you. question from line Levy Truist. our with of And the Jordan Thank next coming

is Your line Jordan your open. is Levy, line now open.

Jordan Levy

the I’m and a you potential that for importance might realized off wondering quickly adventure cut the out? and build my from able the that network growing that of could about build-out if of benefits be the we be Apologies as IRA talk just second. to any

RJ Scaringe

Thanks, Jordan. Yes.

we’ve what uptime think the today, been of working to building or network the first We’re ensure excited And was it we batch ensure equipment about Adventure Rivian really out is more our the into like as sites planned. of RAN Network. deploying

fast And reference, build normal. we internally, the charging those is this DC also in We’ve designed chargers. those increment, as just the

to production line charters. So those we have building a dedicated

the it an network. We’re to through open as to updates some becoming making product going facilitate well

doing Can couldn’t of something It’s commentary just week. had And Nick, more is just getting some be some hard on this that the there? more team you out is working you’re it review provide there. really on. on I about last your excited a these work of We – more

Nick Kalayjian

Yes, sure.

as today, behind or the about it, Those be sites country. units excellent. places The overall XX Tahoe about showing the referenced, numbers put locations been really strong in have the LA base that’s to our across has sort these we key. like to up just we represents Bay relevant XXX already So customer to and chargers experience routes from some about to the uptime which Area open of user really We’ve think Mammoth. feedback are as customer picked

number one The more complaint there them. is aren’t why of

and year, minor the And we network dependable able that’s then we’re equipment this to to Rivian on we’ll be want we’re able have, network. open the accelerate to to to data uptime installs to expect we that to have that based going we be accomplish, solid really the a up working customers. modifications scale So what number hard but then that the continue later beyond again, some of that

Claire McDonough

be fueling billion money in $X a then which of of to addition that funding, to take there’s incremental in we and And net infrastructure And funding advantage forward billion position available. program, to charging that, look the has an $X.X available.

some use government the of rollout to those our to network. excited of RAN accelerate we’re So grants

RJ Scaringe

our produce And facility. we’re uniquely at chargers Normal positioned because U.S.

Jordan Levy

Thanks so much.

Operator

any turn closing will you. Scaringe I Thank remarks. to call for now RJ the back over

RJ Scaringe

about the thank the for quarter. some Well, you, in talking progress made the last We call. enjoyed we of joining everyone,

forward very the We’re of to years looking quarters ahead. and from as us, heard certainly, much you all

our costs continuing drive ramp a have We down. to do production of drive lot of work in to and terms

the force certainly that. urgency to within that passion progress volumes. significantly customers with and excitement incredible But level of from we’re to towards operating customers work quarter-over-quarter is as that not the looking focus all want we all forward innovating drive an that seeing and as to higher We’re products we future seeing continuing us show we’re from but we’re towards And for Rivian. get profitability, of

for forward everyone and thank the next joining look call. So you, to

Operator

Ladies today. you and your gentlemen, for that conference our Thank for conclude does participation.

disconnect. now may You

Rivian Automotive (RIVN) 9 May 232023 Q1 Earnings call transcript