Rivian Automotive (RIVN) 17 Dec 212021 Q3 Earnings call transcript

Thank you for standing by, and welcome to the Rivian Third Quarter Fiscal 2021 Earnings Conference Call. At this time all participants are in listen-only mode. After the speakers’ presentation there will be a question-and-answer session. [Operator Instructions] As a reminder, today's program may be recorded. And now, I'd like to introduce your host for today's program, Derek Mulvey, Senior Manager of Investor Relations. ahead. go Please

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

Joining today's Behl, Chairman Financial is and Officer; us available our Claire Officer. Chief Scaringe, in and Investor today's Executive call, A we on copy Officer; shareholder our our Jiten McDonough, our of Growth RJ Chief Chief have letter Founder, website. Relations

strategy domestic management’s conference to I you only, and required include during under may statements by implied uncertainties of risk are without reflect opportunity, have or vehicle this any our regarding if differ associated including remind facility, obligation business. your today would responses the limitation may results to forward-looking with Law, update and circumstances goals, to to call our as expectations as Rivian Actual market like begin, trends, comments forward-looking from and we our statements industry those such operations, Before be our or in revise and of related materially statements views questions our and business by statements Securities course not will statements change. law, due Federal deliveries. second to does that contained business regarding these or manufacturing Except

with website and discussion factors our Investor risk contained impact risk a SEC refer For found which at on of that today’s cautionary the quarter rivian.com/investors. can and both statements and of in filed other could to XX-Q factors important the material Relations shareholder actual be third the results, letter, please our

provided today's I'll A reconciliation both GAAP financial shareholder discuss letter. call non-GAAP with remarks. of measures to turn opening call, who over the measures. non-GAAP that, we RJ, will the financial this will During With GAAP and in begin is and

us you joining earnings first call. afternoon thank and everyone, Hello, our for this for

items I our overview made encourage of the recent we which the before And mentioned, today’s shareholder call, details months. over on read call. for around will to published Derek it As we've of cover progress just additional letter, we the you this all includes an some

our to overview into Before who mission to of new Rivian. and of I are for some milestones, a dive provide those I our quick recent business wanted

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consumer RXT In in and and step RX our life’s building launched combine efficiency. the first customers. our both our RXS, with for the with utility, encompasses and consumer commercial business our handshake our and our first of platform all adventures, relationship we Our Engineered with world uniquely performance, vehicles space, the markets. vehicles the

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to sellable by customer a consumer our deliver We the capabilities, relationships. have Starting Both product services. a Amazon services products to we comprised to successfully development month. platform, this deepen built commercial and are sell our supported first technology address with cloud lifecycle, and our integrated vehicle and and received operational entire clean we our of vehicle sheet, a full that products certifications ecosystem vertically architecture, value-added suite of and vehicles these vehicles, our plan

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the MotorTrend’s past safety, many Electrek, To XXXX after this the was received Edmunds. Year editorial and engineering performance. of as boundaries acknowledgments RXT to Truck news the and and program. an Forbes, list, value, from week, outlets, excellence testing all add few recognizes the pushes and we've earlier including exhaustive design, selected Over advancement recognitions that truck including this weeks, Newsweek, award aspects This across and efficiency,

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a year, the this an completed From Trans-America first in delivery Trail. team, world wanted RXT a production U.S. perspective, vehicles. earlier Additionally, our to first a -- the we the for our highlight significant on of historic I of a crossing production and all-electric milestone

RXS and to As by sale of our I exciting RXT off my And colleagues saleable earlier week, first Claire moment first and was this number emotional organization. thousands the drove of for vehicles. purchased the our two joined and line this the family celebrate production and

I production ramp part Launching life. chain, a state course into global energy team production bringing our tight a on This requires challenge. months and passionate rapid grateful production vehicles of an hiring market and vehicles a ramping production equipment chain, workforce, and our have supply within complications for to through at given I'll more our be three the soul the but such exacerbated of incredibly loops. labor this and of been manufacturing from is our speak supply dedicated tough training our COVID. climb, these quality be steep point few and to ramp their second progress. of We’re stop These couldn't a iteration of alongside different of for the challenges bring-up simultaneous and and

left get As by normal yesterday, certified these, and dedicated vehicles our vehicles hard a produced working RX of are our have or vehicles to as XX as many our working days production including week. sale at of two year-end. we this first XXX customers facility, delivered earlier as possible recently With RXS XXX teams of

expect short of hundred our we vehicles XXXX, initial production vehicle target. few For X,XXX produce a to

the up the ramping certification, up was start more We ramping RXT, in begin critical for the production Ultimately to are production which ramp RX also validation production RXT RXSs enough XXXX. and in while the made to introducing decision November, the for we Following RXS line. support RXS challenging expected. early production produced the RXS of than and

the a value RXS, of importance we long-term the optimized Given this business. strategic felt approach for that was

the year. EDV certifying which our both into our have XXXX, to shorter the are objective this early for XXX. we continues we encouraged of the primary certification and XXX XXX, RXS incorporate We learnings and achieved sale team by the of than narrower operations. And complete and EDV our progress to is plan In RXT

Our will RXS, XXX in remain long-term our manufacturing and year. of into production EDV the EDV trajectory. confident continue RXT, XXX ramp And we next

of suppliers rate. are we Just manufacturing also ramp facility, their our to our production as are our scaling hundreds scaling match vehicle

all work Our supplier market remained partners and the supply our and mitigate with issues continues procurement the our tiers to chain, nimble from COVID across stemming pandemic. team has labor to

is ensure systemic have previously within assumed parts build. levels chain, long-term represent consistently the supply good issues. than we've believe challenges news decided to carry our of do we not any supply the uncertainty to The Given higher help inventory to we chain

team have we development drive facility, sustainable ensure and and large facilities scale our of been adoption diligently focused accelerated normal transportation. have real well-positioned to While our ramping teams been working capture estate our and production to manufacturing the remain product on

Georgia, The gross wanted State $XX.X want produce us. vehicles we From which vehicles plan of Georgia's of of our to suppliers. evaluated to of manufacturing annual of billion and thank will to our public in we're was the to site be talent, coming a construction the counties with Georgia completion variety ground with initial employees facility for another country, offering a economic the units. with will XXXX. home site our of XXX,XXX in summer, proximity The in make process next having Rivian selection production. raised peak target of U.S. of access I the culmination intention excited perspective, of be an saleable facility generation of will announce logistics, a today the to east of right partnership The the of sites than location more which Atlanta, home State team the Georgia, Rivian This was across in development looking which are excited combination the will comprehensive Morgan X,XXX The second our facility. represents employ project deal the largest I and Walton proceeds. we for this last history. and milestone highlight major and to We entire capacity break November, in the facility start to producing by eventual at

new We and their growth capabilities and vertically capabilities infrastructure are appreciative our objectives, These integrated and to investment extremely engagement. to us including our technologies, that for enable of support excitement our customer receptivity shown. funds have shareholders execute the on the experience our near-term manufacturing into existing and of continued and

As the part and proximity to they Forever we Rivian the inspire. our IPO, by established our extend hopefully associated of competition impact beyond

dedicated mission Forever’s world outstanding preserving donate stakeholder planet's survival. we to a pre the for making Rivian’s and critical addressing needed in climate is long-term our biodiversity IPO the our X% success. natural With our of Forever, equity to this, planet's crisis,

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on customer Now, I'll it Jiten, the who'll business. side of touch hand the engagement over to

Thanks, RJ.

refundable have to Rivian, of continue a affinity backlog our paint and strong and configured including interior a brand, acceleration evidenced as $X,XXX our for the preorders. reflect everything our a preorder accessories. to from seen we vehicle in color We observe deposit by At

as third of end then, XX,XXX the States facing added we preorders we preorders, Since United of another quarter, customers As yesterday our have our with had of Canada. XX,XXX. from net across and approximately backlog RX XX,XXX

principles, jump I wanted The foundational experience a pain spend to few to I solve a Before walking all points. additional customer milestones, our go-to-market go-to-market three minutes efficiently into designed is Rivian strategy through rooted few existing strategy. customer in

that, ensure able customer. First, direct quality By each the the are interaction. to doing we we of to go

enhances force, which heavily in cloud-based invested digital we have each backbone we have robust enables Second, and the digital means interaction. that

We experiences expect grow. provide scalability will deep and this as we this learning, immersive

stitched account. you As intuitive the can self-based, dealership. manage minutes what an example, end-to-end And experience purchase a at experience hours of we replaces into physical your and our one of several otherwise This of seamless is These from us through in digital principles third, at process capabilities. to integrated With free customer requires control touchpoint. stress foundational a together digital the entire maintain a allow set three vertically put center customer interaction journey. means the every each

the hard action. Over and design work, years concepts past have few put of into months, been

including further kicked provides have in have locations a our at for [ph], find hosted Normal Since details demo letter, drive including rides, few. off vehicles, This our drives. program. New experiences and our a touch home variety consumers helped York, to on Mile September experiences we of we In I and and over Seattle, guests event-based handful XX,XXX California. in will vehicle, You launch, and of program will shareholder ways but in a in First

delivery team to ramp to we our as began Additionally, sell up. September, in vehicles started

have many delivery can happen we experience. so one customer's whole interactions we our family, thought that a tremendous put with into As primarily our comfortably Deliveries moment homes, a they if choose. friends they experience customers, of a with their community of and so at amount

delivery, vehicle, everything through delivery tailor about and need customer experience they specialist know the a and family. the to consumer dedicated the to this is the During walk the there field to

moved in California. we we As our Hub into first October, Rivian opened Venice,

friends unfamiliar ideas. come Rivian our and are for customers, and spaces, local If to with community you're together, places they connect share the

tracts location, in of outposts protected portfolio lastly, Venice, adventures land large a customers. spaces locations, spaces accessible in be will which these that to location Our new of are consist and more will like hubs, in temporary targeted

expanding of area. rollout the the customer's coverage service of our service plans, which concentrations service service fleet of On service our mobile service the highest customers. The perform we are centers, are centers while prioritizing side, by staff vast at targeting will majority preorder homes, complemented the of the a

to service Our a delivery cadence infrastructure and free with highly the ensure service experience. is responsive synchronized worry support

enhance support the capabilities diagnostic predictive further will service Our and XX/X service model.

the me provide along pass let Next, who will Claire, on financials. update our to call an

Jiten’s first to start I Jiten. and third review RJ customers, call you of revenue. excitement RXTs Thanks, $X as wanted first million company. In to quarter public in September, a our I'll on echo generating results. with our we to our XX earnings a in talking all delivered

a the this capacity. costs across RCV manufacturing associated produced our expected gross dynamics As fixed are vertically third RJ given profit. volumes on negative to mentioned, operating with scale, growing a on in expected small fraction drag large our we that a quarter vehicles production continue and we running of near-term, platforms small highly started but of our September, the of RX and lines integrated plants, high production In the just will amortized over have long-term number

$XX a negative result, As third the a we in of generated profit gross million. quarter,

to to and profit impact for in sale. gross costs third This Additionally, future. we impacts in necessary or net it inventory, to recorded expense future vehicle the write ready a sale, lower realizable adjustment quarters after negatively the certain value, expect of the the cost the that quarter, we anticipate LCNRV near also upcoming receiving upon in value we considering down vehicle

as the to we record in of part have continued costs adds today. to adjustments, build the fixed cost chain example, challenges the inventory sold. quarter, we our to recognize we mitigate up For goods our the immediately which balance have supply help of We experienced concentration LCNRV fourth of

we dynamics, our on market accounting to evaluate marginal a also cost the will the inflationary sold. goods in pricing these have given of for the result of vehicles. a As And continue produce limited we our vehicle QX impact backdrop,

Commercial expense in third research the was XXXX. expense as Consumer of compared higher quarter our to program, for as $XXX increased and program. The our million the was well to quarter due EDV to as expenses, $XXX related million Turning efforts to development operating Vehicle RX Van our

XXXX scaling functions third as increased facilities of that facing million experienced drivers customer The the future quarter million to and third related critical future are operations, $XX for product growth. office activities corporate this locations, SG&A and also development $XXX advanced quarter our increase We the service primary business commercial other for our expenses related of to of support are XXXX. to sales to expense for products. compared was

During $XXX of note. our recognized related issuance non-operating quarter, the subsequent and to the This loss third we a our This the the in expense million non-cash was valuation of note. result convertible convertible mark-to-market was a XXXX expense.

primarily our for continued strategic facilities, due was service Our the well capital expenditures by infrastructure, in factory, the investments driven of basis. and to $XXX expansion corporate our and were as as quarter experience normal operations million in investments third

billion approximately fundraising with balance, have these billion $X.X two we've our $X.X of third Since raised cash through cash on net ended our ended IPO of funds balance our also our we $XX notes. completed sheet. to and Adjusting on billion balance of of for events, sheet. cash $XX.X September we proceeds, then, secured turning the would balance raising Now cash the senior with quarter billion net

tremendous future highlighted, market. us opportunity transportation RJ the services the there's and in front help trillion of a drive As to $X of

infrastructure However, our opportunity funds investments. execute on support offer near-term growth XXXX and our out to to building we've our requires raised us organization significant throughout objectives. The the

to continue accelerate opportunities pull our investments will forward strategy. look to we However, further for to

look our As focused we weeks RX production ahead, remain on a few and we ramping deliveries.

XXXX call EDV that, and EDV the XXX our expect RJ earnings of of guidance fiscal for provide to the opening our before XXXX certification, quarter year during start making to deliveries finalization turn the up plan We year the With to before with let Q&A. me Amazon back addition year-end. fourth In we to the full call. line

Thanks, Claire.

reality, goal make and a COVID RXS and focus appreciate a of our challenging the RXT unprecedented dedication our backdrop I team despite first chain this and for our primary vehicles As supply their XXXX. environment. to EDV I mentioned, for goal delivering is

With for the backlog unit we demand products XX,XXX the services. Amazon, excited XXX,XXX satisfy are preorders our of and to and to from growing our order tremendous begin

Our being demonstrate rallied with questions. operator us continue continue as team Thanks a scaling for we the turn today. values, has everyone again production volumes. that, for to around our and to their And me it over tireless work shared ethic with let to

the first from Jonas line Our comes from question Adam Instructions] Morgan [Operator of Stanley.

question, Your please.

everybody. please. afternoon, follow-up, One question, Good one Thanks.

learnings and On doesn't plant. second the in up to ramp works capacity and first, your use architecture then I those idea the the see work, everything optimize was expansion, of that the thought normal what selection to

so why still of can expand And learnings soon? kind you So those in? how get

Yeah, element key at a Adam. the Thanks, cascading of program programs this capable to the really is and than not also how to the launching we've about than one fast but development product between loops feedback be how have only running programs. more of thought more and one of, program those organization we different architected once,

work of programs RX this next the key So and this we're actually timescales see launch. with and a RX has look plant that and us the heard, platform for as develop the now doing to Georgia, early facility, really start an fully RCV online, point view, is van will you from as associated is learn you've really, of what the with terms we're certainly facility then that second our launch. next us the what that on at require the on lot the What and recognizing and bringing RX the that we commercial of year. expansion in platform in we generation doing from platform learned platform from And vehicles those

time them to seeing the supply that end to the can What's consumers. how everything last fiscal RX early that you on your your just on early there's that right think the ‘XX. them? which and have been of would And the you you've when were RJ. referring orders the I today the through that delivered going addressing I’m was you're where delivering. This curious comment expected Thanks SX is issues? chain. -- I'm lens based if November, XX,XXX as by reiterate on a there any builds of Thanks, you're follow-up, RJ. love feedback to, And just a And,

point part we're seeing tremendous the and family being quality Sure. I we're friends to for features. There's on increased additional what's element excited where of of terms of what focused invite view, a is on in to just And first vehicles on preorder the and What we're us are really customers vehicles guess, to together. we excitement. touch accumulation. this the And terms from we're exciting early take sure a of really been is watching what's delivering, delivers key they're has of built, a rate us put think rides. that's making and amount of maintains are what's And driving in how add delivered. how how quality finding quality

in vehicle, updates, of improve their over software only go getting. regards the feedback Adam. some not to to then early sorry, ahead and we're response – add through to software and the So we’re features that able And but enhance the capabilities with I'm

Yeah.

The delivery on XXXX. target end part reiterating the second by the of of question

which Yeah, recognizing of rate we preorders the demand. exceeds in rate current sort as so have at supply, up can catch coming we work of with need the absolutely to to as production are speak, to working so are to we hard ramp

existing order, if you But XXXX place deliveries preorder in that XXXX. and So that today delivered we have those plan for if it a do are to be make until you preorders the by delivery. wouldn't

RJ. Thanks,

you. Thank

from next Lache Rod the question of from Wolfe Research. comes Our line

Your question, please.

more everybody. response about first accomplished the Congrats the you on ask Hi, wanted production. to bit a in what you product. little to I

year obviously, daily of all, you this are some sense to what biggest ramp? where Can of you at? focusing together. bottlenecks coming in Where your operationally? are production exit is give the you the the point now First rate lots and at expect Where us

almost like an orchestra. this, something Ramping like it's

or to is that are given bring-up. to chain, the importance customers working supply simultaneously said, we're sure and course, we quality truly issues quality working then the making the we the loops, ramping what through simultaneously as Adam, have be to. just levels And workforce, to delivering training committed equipment simultaneously through of of We equipment I achieving as any said

represents So in the the time situation what such ramped the roughly challenging have the timeframe those its ramping, the each constraints production, those of parts vehicle go as just chain XX.X% what constraints so makes of challenges. come this set of is small create it that if is in of the this ramping components at X,XXX of and vehicle case that the own can or launch slower, challenges. vehicle. or supply we a XX.X% the smaller a And into chain makes of to and at may look you supply of really even and of a number bottlenecks. be same have And a suppliers in rest the If rate number of unique components little

And to only not ramping what's our but also that effectively we've we so focused of to are we've on our in ramping and effectively making had across all been very respond sure plant, suppliers.

long-term a Now they months. challenges short-term those focal and chain. are you half, as the for see And three issues systemic last over really us associated in with nature heard, with two that the number challenges and we point solvable any supply A of said, are these a have problems. been don't ramping

modules are the separate to ramping been thus battery constraint look battery of it, we equipment cylindrical terms and the lines battery And, the case the has assembling long-term that we've has control what actually a As today, we And through up. things done a XXXXXXX each been modules those highly this facility that loops, areas vehicles module cells. producing assembly and automated isn't us quality a packs, for the three each it one our in because process that's into And of brought modules. pack modules our working have our inside been have directly building it's process. far we nine has and risk a battery and of the work ensure takes quite of of those bit in in

significantly constraint constraint. coming took while this of as put of one, automated we line this as this been couple that's what And line And last fortunately point, what like now. scale call two the a commission much majority fully vast what the essentially a early we which call number of And speak. a larger of year then the is line long-term zero, so then have a We that's we've didn't a development the line battery have that models is producing this we So to And thus has we line for running roads two, years line into been over not recognizing decision line line we as with see see higher far. this we have up to constraint, line we volume. want to do a last we -- long-term capacity added this months. given we've last a

looking I have. the demand get looking mentioned to accelerate going production, XXXX, great that. delivery you Are at for the Claire looking just do your grows, won't platform given also Thanks opportunities is pricing to to maybe your things there envisioned -- can pricing, just to you're and just that adjust product? that RX backlog problem related as to to for And Claire the people to accelerate you're the at to strategy. I think what get a originally on ramp opportunities you until the where you that you'd at the for are inflation Or, response the alluded product? are based point

at looking how demand that the certainly can the products. we're we accelerate production, to the really we regards strong given With have for ramp,

ramp only we is discipline parallel. the One the as made we organization not in also that exercising things into to designed the lines plant, two the but set that things we the we've sure of are way we've up, built capable of

been our we that to With discipline say, strong of the within electrified we're has that line. recognizing separate set able And are be lines very we're that our is XXX,XXX capacity we we intentional separate to to activities. also XXX,XXX part vehicle at to have capacity we those what plant. They're onroad, within incredibly XXX off broadly and can -- And on vehicle. for leveraging RX features to over intentional say the and that here increases working plan pricing. vehicles have the we've pricing, a road, And increase, around look but for plant great had us how in product be backdrop to it's horsepower, just how us that So that commercial assembly the in are our very plant also built. only those resources. of allows inflation has teams do lines, teams drive, two allows into them. to the to line also in chance great deploy products, to been and And drive look but three those great but at those for at space really the fun to units also set, I'd not from seeing, demand put caused our seconds, product normal the vehicles capacity, grow the and a capable, regards a incredibly looking zero And that of everyday us the that And you've units. we long-term to between very I'd accelerate ability to are not together certainly really, XX

very a we priced. aggressively of competitive terms in are they So recognize set,

about that quite team. certainly So talked something considered a management as we've a is that and bit

Thank Great. you.

you. Thank

Our of comes Ryan the JPMorgan. from from next question Brinkman line

question, please. Your

my question. receiving. taking ask of for thanks been orders Hi, the to about pace have wanted you I the

given first around media cetera. to of they'd because the after that the just company attention in the getting product the increased was the IPO Also with increased reviews the think et maybe the RXT attention IPO. the lead I getting increased maybe was up

or if has update So there has be name of maybe Also took the interest the market be leg get elsewhere. events orders news, it big great in fleet any would the non-Amazon the pace company's Thank if RCV with of the after increased in or you've inbound been like interested what in California another the from some IPO done customers. been up to maybe an potential that you. looking weekly platform

hi, Yeah, Ryan.

said I it think you right.

to markets predominantly to our deliveries We're through an our we to the of They've in intensity that greater in getting terms both we've then that were vehicles, more heat definitely the an weeks, had those employees, in in the growing, and our end major experience more the the markets. the also importantly, map which intense. Equally is the And seeing major them with what few The always all is in and now vehicles those coverage demand interest, our launch customers. seeing Mile but last around present. out the definitely the resulted having happening media. Over First and you're metropolitan program, demand. markets customers, it's the coming big all of areas non-employees, first attention and then of grow started to demand in demand increase increased all of getting in

So we be needs anticipated still more are, I robust. to demand than definitely, would the but say,

the how you having fleet. the are lot Amazon decision Mile market of space. and scale interest, player Last RCV in being allows have, an anchor But learn arrangement the fast, we seeing the as to in strategic we we was have outside Last Last to interest. allows exclusivity made, space, as space, platform, us a a mega delivery And, that and a large inbound there there. a with Amazon And out On we them deploy know, Mile is an huge biggest customer Mile delivery to the us

that this use or cases. actively engaged space, with are players their at different serve We looking in formats could specific configurations

every with FleetOS. excited delivery to that present we more the that and outside will opportunity first flexibility, quite this modularity we size about And space. applies management platform, Mile scalability also fee. provides the Amazon, platform actually of recurring a use are of launching to services we commercial be of fleet the grow it's this Last be the on opportunities and drove this This the even side. interesting of is is the what monthly with It vehicle management going fleet cases vehicles the business are So delivered the sell lot other of as with to a the that side

another launched. that's So that unlock value we've value, of long-term

which about pack? are what lastly threshold, it custom don't just I would know, that? a point as would a Okay. on, there, thinking like by battery battery or you or a describe sense make sourcing with manufacturing And bring encouraging. the Is does you house? At How vertically batteries partner to question you guess, How That's mind Samsung? strategy. date unit very integrate the or battery to in then relationship I have a insource to pack of maybe to designed volume maybe in company maybe with you. Thank more

Ryan, this is a great question.

half In to fact, it going see really, need to I cars most all and sheer as XX a planet. in think million XXX we're the questions year, around And it's of produce an in a the electrify that from vehicles the one to necessary the scale of important probably industry a electrification. one batteries and in billion context increase to on the aggregate the eventually stems to of

an XXXX call what about world. first suppliers. SDI we of we've approaches. this, as that the with see we the the be category capacity already a cell parallel, really done lot second what that type create capacity truly need or that meaning we building like existing three, happening to the capacity, with to is for capacity. strategy cell nickel content And being we've deals demand a Essentially, as would is happening -- industry. see sourcing sourced don't first second high parallel, we've vehicles. the co-investing thought And mutually that. capacity again, starts or element existed for in we're we existing not parallel in exclusive. new from So of across that's see doing need really I climb, more the That deal is certainly cell, are approach, And we've category And is And that that these cylindrical developed in And of cell. launch Samsung it's And what a cell. has to

be in for vertically us, those and of We to And cell, next co-investment We've of last haven't core arm late to announced taking to the the quite last yet. continue sourcing integrated more year. of vertical is control cell. path, the that intended sourced of out all the of form some is us. approaches, is of working doesn't any a capacity was where we'll integration scaling the that approach the really need our in first look and company, time. for our design been And important. completely beyond as pilot cells two control. producing the created capacity for mean newly with the parallel three of that co-invest partners, invest the strategy and on And and cell just that even world, of us we the business. simply that critical in be meaning three that growth. to response for the relationships then critical the for those raw amount strategy. the in we'll into And of second-half newly we capacity when fact, that starting capacity in materials an third approach at XXXX And entirely to But is go into be going as those going we us one already in categories in created XXXXs, cells don't pathways super are as a to All looks start our supplier It out and we remain to existing scaling that

you. Thank helpful. Very

you. Thank

of from next question America. the Murphy Bank John line Our of from comes

please. question, Your

because first than bit of trucks coming thought you'd the they're we and ramp A furious have maybe to out a certainly But were the more preorders, everybody. of it's build fast question to on road we the these momentum. really on faster And have expecting. here. a Hey, this

Any your to the quick. pretty certainly it's demographics, and are expectations, sort traded of specifics here, around rolling folks of in. not the and being you relative have but it's any And how curious where are these if are vehicles that indirectly from? early a the on buyers just because coming I'm the sort read So preorders lot

outstanding. we're couple of And the we've But over also Yes, the heightened it's really a IPO that. seeing is media it's over variety coverage sources. that the awareness certainly months of lot exciting. different last, outlets of been last contributed of Their Certainly a broad a response just of to what from the the vehicle has lot the company. to and been seen

that that do deliveries for into of of excitement and from the of there earlier, every vehicle events early a different number mentioned and a Coupling we some their company, just joke, we so often the I vehicle is of around their excitement the as so to customer excitement more said, done XXXX MotorTrend’s drive representative the and so the early continue. Year we're is vehicle, sort doing, expect because seen As With of with we've for turns for the sales of us that of much comments Truck our product. that and awareness emblematic just then publications. we've selection what the much

we awareness on continues will And some lead the in in talked we our preorder as ahead opportunities production. volume to to demand. expect ramp focused we sure on do earlier certainly questions, about, how up, go We ramp. it for we has look that increase make to to pull continued of And continue us as to

trucks? preorders? I the Are on into previous these staying mean, trucks or that are that buyers in are buyers folks early these that truck of any on are who stepping what's RJ, so they sort early placing read the up folks? read And the

absolutely. Yeah,

validated is one RXT a never that this having the is own close have so to product interest many definition, we this. having RXT. lot segments. We so And and much in a RX. a our truck. been we share majority has positioning validation always of has the the the coverage should be customers this of and in of shoppers hypothesis, in a lot the experience this intended vehicle that coming right, the I think sort by of you're our had the is vehicles, true what this one And where have it strategy, customers has whitespace. And that attracting this and terms And that are attracting the the from, of for are a own of where finding whitespace absolutely with never been of customers -- XX% with vehicle to in of due be hypothesis two of from the to factors we cross resulting electric of one, adjacent activity that that markets will vast add and are I buying had is the

that to close expecting once actually up are are only personal people to hits the drive and to in able RXS market, close even bigger, able get are We experience this it. the

quality as encouraging. could it from do Absolutely, very we has it definitely of the are mentioned, opportunities earnings, -- we view. So up more point what RJ opens pricing And, from on is of we than a anticipated. also

are we So these now. looking options right at all

something it’s problem have a high hands. Well, on class real you'd your

jobs what worked if going to a as net multiplier X,XXX for the incremental you this in I'm lastly, when argue deal is through you with with mean, chain. on Claire, just think terms the XX,XXX I Georgia, have spent use be going the out you Just have Georgia on Georgia to this you otherwise? curious could a were And would what CapEx, gross be versus all to to on is benefit this it you go to facility, net certainly that value about how XXX,XXX I are? mean, Georgia, versus worked CapEx big jobs

Sure.

of cost we originally CapEx put that the in there we would record, growth plan original the advantage So, our to relative this an thought would to our position anticipated in we market. about metric that out second what is certainly say for as I overall facility, terms

really talent so, in scale true excited across the we're and will closely the second that a but really you market really of not that pool package U.S. facility as optimal we one be about Georgia State think with attractive the incentive we to out package, a as incentive we’ve that worked Rivian exists production just the the mentioned, market. build want within here. And It's very for and significant

mean, that I Georgia. really for you quantify good thing Could at a it's all?

you what NPV. the if able your idea base you're case So, I versus of what here, to an can just on out expectations what maybe pitching in. relative give us I'm be they got curious side, mean, should or capital you to work

that a would more have we'll on deal say, as deal now, future But and Georgia announcements. in to that for well. certainly come would I Rivian right it's great great just say I for

much. Great. very Thank you

you. Thank

Brian line of Barclays. question Our next Johnson from comes the from

Your question, please.

Yes, drill bit want the just I little you. ramp. on production more a to thank down

went mention in where through think little think of the you to more kind constraints of of mind you the brings classic constraint off you maybe confidence describe to bit versus a anyway? you key that battery the is? you their the the be or packs, course can the the design welding packs. its Constraints. did the knocked would do how investors about something If Now detail, the complicate Theory get of that Could case, word worst perhaps constraints, vehicle, fundamental And battery

this, like ramping production orchestra. complex In it system is, up a I as before, really said a

So members of the thousands operating you then have and vehicles production team of suppliers facility to together. assembling thousands within parts, and put of robots of to the hundreds thousands working providing prescribe movements,

shop that we paint aspect assembly different highly throughout as as any within vehicle, or stamping line. process, shop, whether battery as lines a I those doesn't plant, continue And with assembly, as any The is body automated daily and that just and of of full the progress or really or So through bringing challenges we we're those tracking the have or it's or there's we general constraints. battery represent the the us. how said, assembly, each artifact an And said, go managing multiple meetings driving to every constraints of ramping And long-term that expected. hourly output. we're largely up whether for all day, how constraint

that areas in other We will have a of the of in put the second terms of plant. line way battery that's out the production front coming capacity module on

that is So say output. what front-end of a to we output need And we work through designed plant in part ramp through of I'd these represents challenge. typical this this curve, just higher S up. training loops, workforce, type significantly as to for recognize our terms we of is the work at just the run the of seeing And which we're is quality as today an

up. things out and a ironing daily follow-up, the board, a And pack, be on of fixes, of basis anything in parts to opposed as having drawing either longer and bottlenecks go come to the that attacking particular just back that or would to cycle configuration just to terms the kinks

see manufacturing been don't either vehicle plant the or supply any designed, has challenges has the way that the with designed. we No, chain, or long-term the systemic been

Okay. Thanks.

you. Thank

the Our next Mark question from line of Sachs. Goldman comes Delaney from

Your question, please.

Yes, taking much questions. thank you good afternoon. for the And very

of of going a range miles the it's to I'm So attractive, XXX the think, commercial business, on very the seeing routes. you're cover side of I that estimated start would number

executing hit you would Is vehicles there And of seem initial in around XXX,XXX? order that percentage of to from to XXX,XXX initial technical more doing? to before take on a delivering upside milestones terms be of to some it order be the better that Or may upon to may it as certain so build be having that moving understand Amazon. what

a it's good Mark, question.

large the as we about result, they're and commercial not us. earlier, the Jiten very sure most that And demand focused pool and only the of to space, represents think a space rapidly deliver this they're we're but such largest the we As electrifying. Last for on to their spoke also within making Amazon a needs player Mile

of not critical really it's them do vehicles. starve So that we

beyond that that's the the vehicles cargo workspace. saying platform, platform RCV designed in space, that’s contemplating vehicle Last in was fully Now the the Mile, architected so and

long whole out that spread tail a a but of very host applications. across large exists both commercial also of there's volumes, opportunities in So

that. is focused the are it's wanting to towards of and how But are the that the we're engineering the managing working complexity introducing, time. at for and rate, so and just plan, And on and with design up those something team the that right vehicle at right us, versions bringing do non teams the we're we that balancing much EDV

the the talk not be narrower on ramping we're is complexity, we're variant XXX, a heard come up will ramping EDV about Adding we're which and over top desire the EDV me XXX. that earlier, quarter, production. introducing the and RXS variants minimize to we'll additional the As next balancing but EDV you of of the while But shorter RXT, course of just van. up

while bit is auto quarter second move for hoping unfortunately we could And some Omicron previously as my time, factories. now. a At same through or complicate been and terms easing environment the a little for see in closed of components, have on to tight companies you started other question And the have helpful. variant That's of supply reopening few semiconductors it's comment a could long that the fourth perhaps things. the

that on more in give the you. could environment. company bit seeing just chain a you if any So, hoping specific may Thank its supply changes be

and we've to Yeah major And suppliers I'm for and are smaller of is might a very, a number suppliers. the speaking rest picture not Certainly clearer also to incredibly that an issues translates to that a very say we've that very us ability really that's cases, in commodities in industry as been second to plus positive of suppliers have them challenging. of have different doesn't areas not been of we ways, the some shift both on have managing of ramp, of a be their as that I'd the where what supply on in heads attention. chain. components. be our chain areas COVID. true to taken very that supply has been to smaller seen by lot this, the hire been It's last with and suppliers I'd the A element And semiconductor semiconductors environment are that. very With where have how the gets the those, expected. issues across And return, months it's across having These unable communicate we're approach say of in expectations. in supply unprecedented constraints to with And worked semiconductor the and said, challenging our over that or transparent of a But our the our ramp. clear go one that week variety focused of three thoughtfully. certainly is, most we're

their challenges hundred we're in types team We're several working working supply lot of these very closely, cases on production in a So with them of hands suppliers. with with seeing facilities. got with and many a different that's up them our suppliers. We've all those base bringing

very very that they to we're have sure good also collaboratively we visibility, the achieve both make working So and ramp.

you. Thank

from next the question Deutsche comes Bank. Rosner of Our Emmanuel from line

Your please. question,

of revenues And side. on is subscription. start you side first like around average Yeah, to side seeing that timeline or what of the then to essentially question take on any the in software rates some sort vehicle? was the thank My going revenue would both consumer from sort initial be views day these consumer much. very one, Amazon, you of and expect is subscription and on On terms then per like of commercial

by And the And deployed operational, this set of so feature Yeah, recurring parts the grow makers on more the that included, of we FleetOS. sort them this hi, launch. to words, are the just as vehicle these start that, a goes on at consider other and features value a Emmanuel. a set. TCO level expect we side, to feature Two as for Amazon set comes deliveries month, commercial VX we of subscription confirm In with as live creating of Amazon. to each monthly are FleetOS to

now live on commercial subscription So basically goes side. that software

to membership charging, software flavors basis, roadside on, bundles membership which put for other end software side charging of on time, would actually we customers and diligently. vehicle is we are goal fee. include, feet, again, that a a this and a individual will of elements that monthly not Apart membership you software basket or designing the features, the There free which will connectivity. limited but our are The On our And consumer which build that will offering start business other this at where is will that subscription, our this to would there we the complimentary other get flavor curating different and be time the of of that represent, be could working And the an that membership, period, a today And use flavors. every owner it gets members this year. side, basket. or services into from together. that, side that primary has be

for it's to expect us yes, months. we've announce deliveries, in with free and early comes those the as those We work period. a on which doing coming But started just membership

seamless point services experience. in perspective really seen from and have given other for to that financing insurance is, The our add vehicle, that on only the a we strong would as uptake the regards I just well

minutes. XX minutes. can literally twice through delivery a You our transactions in less it process go myself matter through in and than I've of gone

the that part well. initial that perspective, use of on especially edge features And ease two transaction simplification so a of of are rate through and process that really leading those has take shown as from

And color. then great second coming That's Okay. ramping up question, back the my to topic of production.

out. reports confident early be being target some able the to of deliver to understand I up so of going on kind the XXXX I SUV a points But targets? it's around challenge of based through RJ, you've environment. that So being sort obviously, expected, issues, your weeks delivery far and are with be this few obviously guess, your pushed be generally There you on ramp not to should back were of what seen around some timeline some these structural of and and sort like

rearview is in mirror and line delivery this are forward you're your you mostly some overall, tracking in so targets? the confident And that with going of

in quite reiterate. months. worth year. three on it's but bit we're I the to We're said the been a Yeah, over And, have just last commenting ahead. activities what vehicles of launching at confident the little the guess call, the path it I it's start three important this

first those the EDV sale. being three lines. on very produced We we those making also delivered And they're line and RXSs three different all two off at RXT there's with week, two launches, drive XXX soon vehicles I customers. September. Clair as just certified on in we'll for first And the two the first the of deliveries have actually the this the production sold So correspond first certifications, be you three And here been when look different different two before end year. of the and

we're a to And running RX multiple the that's programs of vehicle building, and a the line architected to same critical there's sure such products, make there's wanted the producing facilitate producing So company an was this at as that's products. element time. line the we operating the what we've a discussed commercial before organization is and

decision both able validation put a our enough while vehicles ramping for the our to to our produce of we just what to we're One RXT in those the shared we well. line the be critical of focus months through line, it RXS And into market that putting rapidly a see recognizing because the the RXSs the within into took RXS were and started RXS certify up than took we September. was it's had over the and on line last were And our and through then integrate But a as challenges that and fortunately of process. been as RXT possible. that weeks, that and decision we we is proved given the And the being long-term production we we've two quickly it in seen to brand we has few and on units as for having managed bringing customers the sellable products long-term RXT, we and more challenging anticipated before. still line, of really

past certified what the we like rapidly the the RXS And activities now the the next and fall, RXT through grow course for as both it year, so the this van commercial EDV, as of at positions us RXS into RXT done well and both look those to having look XXXX. will ramp having and as really

you. Thank Great.

Thank you.

of Our Sandler. Piper comes line next the Potter from Alex question from

please. question, Your

guys. Thanks, Perfect.

capacity you Is in First be in in is something Georgia? alluded facility question in the working Georgia, cell that cell I'm the to interested, Georgia. into co-located investor XXXX? that have to contemplated plants that day letter eventually that going you'll you're is the one house in have on to that case in in house capacity from with be

around grow this looked about is think key at we the of to us, Georgia us for site, is the one different we considerations the and As for from. as sites a country, this platform

much of we immediately the will we've the production. to over of but the plant So, annualized the site. in as the cell And introduced selection amount made way grow process, come capacity, a contemplating went But there XXX,XXX battery significant the we've selection products started that. that phases. in And units we'll first sized site same

we be And in dramatically cell add it grow And production, then the then will house so, our launch first cell site, over course structure of the vehicles. thereafter, of the that on the just point that of when a in quite will will we scaling house view, And and shortly of and from following given a lot a years. from it's in something we've criticality site. the selecting placed emphasis cost production

second the of fast question recall, network. then on I chargers or XXX And great. Okay, the you're DC on a target so If chargers. in fast just DC working

target, that timeline to maybe also Thanks. initial and behind accelerate, still is regions any if that of opportunities what curious Just is the hear the focus? to

Yeah, absolutely.

long-term for track target on having sites. our are XXXX We the XXX of

are across that the locations There setting robust going and up charging the Along setting with We and sites, be this to that area in the synchronizing so support business it we're in point we progressing. in sites, from infrastructure up. and making multiple and is procuring a prioritizing doing having critical in continuing country are trying of where different our in we of invest to sites adoption also it view. with from planned believe both are our of commissioning, And, service infrastructures, are are stages. we customer deliveries. a And stages to and fashion experience a

Thanks questions, to Good hear. Great. the for guys. taking

you. Thank

question line Gianarikas comes of from next Our George from Baird. the

please. question, Your

my thanks for everyone, Hey, taking question.

materials but of Sort you. the a making you you about critical for how several materials Thank of secured you ramp previous production? colleagues your as asked, question priority curious have tangential some place how next OEM I'm And think supply on you years chain the sure a chain as to to EV and much of auto recently supply contracts. material a

to made before regards with comments the I similar Very cell to production. overall battery

playing that. We integral the And strong have battery, battery materials. really to of upstream of in our drive importance far incredibly team raw the supply we've role an the conviction around built

space, understanding deeply and course, leverage house mining the then or deeply processing say. understanding that and I in designing should support of the deeply So cells that's that that understanding space,

of of factor believe this I next are in very lot the space, take that we we're build the necessary capacity of active that and haven't focused the I to to very on. say build with material, in we by upstream something We that. when announcements And increasing over will need XX-years. mean, So XX chain made while customers, a the in believe up, role certainly said, that upstream it's XXx, rapidly the this to expect supply a OEMs investments rapidly of the we to a end XXx any case, self-included supply and up raw the that

Thanks.

RJ, does Thank program conclude back remarks. you. further any I'd the to This to like question-and-answer hand session for of the today's program.

on everybody the here, such have business. and And time great Well, about ahead the to call. on spend support some joining to It was excited Thank strong look future questions and really We're from thank some you path we partners. really for updates to you. investors discussions. excited the forward and provide our

your you, Thank This in the and ladies conclude for does participation program. conference. gentlemen, today's

Good disconnect. may day. You now