Rivian Automotive (RIVN) 7 May 242024 Q1 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Rivian First Quarter 2024 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your host, Tim Bei, Vice President of Investor Relations.

You may begin.

Good afternoon, and thank you for joining us for Rivian's First Quarter 2024 Earnings Call.

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

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

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

additional call, Just around items the cover the the begin an months. to some overview on shareholder our we'll that, few I'll will who today's we over before with for letter, remarks. call recent which a to includes turn opening details published our RJ you the I of over progress encourage call. With of it read

joining Thanks, Tim. Hello, today. everyone, for and us thanks

will I drivers. in the making value our call, an the against expected progress our on provide and highlight update During quarter we're first developments key

exceeded efficiency results X and for continued year driving generation, a profitability. on strong and we outlook remainder our of quarter First the and the as cost delivering demand improvements, focus our advancing plant set foundation towards development

across We of continue these make strong each to progress goals.

plant producing our team Before navigating at discussing in key developments upgrade. congratulate and I our XXX,XXXth successfully on vehicle want during the the quarter, plant Normal to our retooling

we're highlight the accomplished incredible also to vehicle our of commercial see While what consumer platforms. I on we what our ahead, focus across building team has work to the Rivian. it's want at uniqueness and

are platform technology differentiated. a developed truly have brand and that We

and to the integrated software enhancements continuous capabilities enable hardware vertically Our product.

an experience, add commercial ownership autonomy, and elevated offerings. and telematics, improve body experience deliver help features digital across to vehicle both for consumer dynamics ability our and control, management, battery Our

approximately XX incredible. the XX%, to vehicles. The introduced our control recently of out in highest again. And by consumer taking over-the-year network production, by our a the have of goal customers as survey updates architecture, reports, to likelihood we with the customers. satisfaction electronic a substantial Rivian the recognized of with feedback new automotive for is owner units Since #X RX brand platform, reduced brand been our purchase start the an also and deeply have number was create launching to vehicle costs that zone, transitioned on We our which approximately resonates conducted products through

During in share was XXXX, market EV quarter the with best-selling fifth a of Rivian the X.X%. of first United States maker the

than and more and XXX continues cumulative million brand grow. driven have our vehicles awareness to miles Our market position

the over Safety. Building Highway Additionally, Safety encouraging. our the increase offering. XX% United We implemented drivers XXXX. We demo the in States the fourth grew on the the Top of versus this of Pick+ RXT the and from have recently strategies hosted brand first of and generation demand to of RXS been awareness leasing in quarter launched with XX,XXX XXXX, states number an quarter results Insurance is award recently this, receive the Institute the only pickup of for

results RX, new While our performance unveiled exceptional market March, for initiatives vehicle capability. midsized the versatile the products. by use to encouraged have which new and captures experiencing are built It's and still platform, utility, in essence outlook. In of and people. for brand we XXXX early of broader underpins with our for support the outstanding upcoming as midsized is well X RX delivery our great we room It's SUV the It and with its products. RXX as the see is ventures challenges, our everyday confidence our Rivian. RX

big scalability has demonstrates to with in tidy $XX,XXX terms RX This smooth offering XXXX. RX of is but RX and performance, even half crossover. start at start begin across dynamic to after price and in RX deliveries vehicle our ensure comfort performance delivers a and of will on factors mid-size first storage. is the It and RXX expect our of delivery unique RX, We started of end to passenger both the off-road. abilities, more variant different launch rapid Rivian a be below segments. ramp. form will the priced and dimensions,

and With EV brand with strength products the translate these established over market. a much desirability larger to United to new addressable and remaining $XX,XXX take our we've products, in our the best-selling RXS RX goal is the strength the for States this

and goal propulsion leverages Our vehicles electronics, high-voltage platform deliver developed in-house to a battery relative platforms, simplified technologies technology our with key lower-cost RX. dramatically RX, and to for software, in-vehicle midsize including our and

the by system through examples focus simplification of of electrical large vehicle, unit component floor high-pressure the cost. massive a die control further achieved on are RX and can associated elimination. is asking associated be few system topology or focus every the electronic for or deeply a through RX structural batteries, of for and cost how just opportunities in innovation we're part Our wiring Use and and using down simplified body if and whereby analyzing consolidation structure, manufacturing the the drive of on pack, design battery it efficient of harness a top to castings

half the the the production opportunities production now line also the production to compared of start will to incentive Incremental the original of Illinois. launch plant. billion site. estimate a start and in grow our RX. Starting production units competitive savings, of excited we in announced continue with up units expected to plan first cost we launching state manufacture provide RX This over We're opportunities Normal State to RX of Georgia Normal $X.XX an in up XXXX community total and with of annual expected from unveil save per needs our starting reducing RX million. is package RX recently announced year, of in Rivian's in and of which the compared includes Normal XXX,XXX by at Illinois through as to RX the Beyond accelerating our to engineering of when sourcing. At has to our for of capital first production and partnership our to billion significant value the RX, RX, XXX,XXX flexibility the between $XXX $X.XX of the

our strategy, the retooling shareholders. With customers, progress June new RX upgrade communities facility. to our to our vehicles thank significant. processes the our steps upgrades recent progress, made production back and around host Rivian improve materials line take The We continue leader partners, like the team this to conviction cycle in also pass is outlook platform. will RX position line. expected the the ahead to that opportunity we and in long These Investor tooling changes automotive including hold deep We to our are continue to best enable would our Normal industry changes in The details improved introduced and Claire. to on we producing when suppliers, late the entire material the that, call electrify all necessary approximately meaningful rate. to over the as Turning we're additionally, cost-focused cost. The The And we within now vision, I'll plant upgrade into utilization run opportunity term. employees, transition. flow the time, And Day. I at a improve and sharing technologies vehicle and to who to that manufacturing line more support to forward look XX% the higher RX and provided plant. inventory those

completed path outlook, Thanks, the first successfully RJ. We quarter. reiterating to upgrade quarter are during our delivery want results profitability. I by to achieved and strong our start and making retooling our on exceeded progress significant first progress the plant

first XX,XXX driver the represented we produced the vehicles, we $X.X quarter, vehicles and of of XX,XXX billion During generated. revenue delivered the which primary

second did to credit on sales. meaningful customers potential executed $XXX of regulatory for first any regulatory Our sale the gross was not in Based we profit discussions million. increase contracts, half of credits results year. Total include quarter with the negative expect the and the quarter

of stock-based and Our $X,XXX loss which vehicle expense. gross $XX,XXX, was compensation delivered profit $XX,XXX depreciation includes of per approximately

efficiency part anticipate which cost Our $X,XXX vehicle initiatives, to cost impacted results as structure. don't long-term we be of negatively approximately were delivered our of by our of revenue per part

We every continue making to vehicle we to on move money closer sell.

We our gross and for meaningful improvement positive reach profit quarter. believe we will expect during a this profit of half second fourth gross year the the in to see

underpinned is actions the we within confidence have by Our taken our control.

that in includes Specifically, upgrade we the tooling RX of components Normal will meaningful expect significant engineering newly our in bill supplier reductions drive cost integration and cost changes the and of upgrade improvements in result RX The design the completion recent materials. manufacturing negotiated line. in of the

benefit for our as costs efficiencies, will improved reserve reduction RX we in from loss well a depreciate Additionally, our as reduction tooling in original manufacturing RCB. our and depreciation expense as fully fixed

negative was which expectations. quarter line the Our in adjusted EBITDA our for million, was $XXX with

our of part elevated quarter quarter, During due built we a on they inventory. receivable inventory production quarter awaiting were to increased Consistent at parts. in the experienced accounts first call, with few our impacted counted XXXX thousand not our and commentary vehicles, the earnings end the work-in-progress we fourth were first These usage since but cash which first had quarter, towards our yet vehicles balances.

complete slight quarter our year. working reduce balances, for be we the material the cash in dynamic raw to from generate production. Between counted and now benefit second and will a to However, our expect they efforts are inventory capital this

reducing a of gross capital significant balance expected the inventory expenditures our to These material throughout driving balance existing launch being efficiency, Over capital working to benefit. I Normal, extend in fund include RX working take the through the operations to down, moment want business. actions and next providing actions by RX of These XX more and increasing taken a starting cash the and operating capital plan in to to half the first XXXX. production months, manufacturing XX%, our production greater optimizing costs to of are capital. than drive significant steps we emphasize efficiency reduce

facility is will our as RJ to down driving the of work our first Normal We upgrade year. We with pivotal more billion happen efficiency integrate few next a the As in XXXX. anticipate expected plant flexibility cash retooling provides the be its RX the mentioned, in plant result, decision Normal. in costs. is and and weeks And into reduce a a that in semi-fixed by the recently through RX in launch variable launch step RX plant $X.XX to half over reduction Normal This for most XXXX. to our a in will greater usage through our in completed of

in variable driver improvement of cost the to largest gross lower expect We profit XXXX. be

downs We the RX suppliers. of cost are on sourcing also see and EDV strategic with beginning to RX some benefits from

be the are planned a approximately by XX,XXX a We XX% cost shifts shifts will X-shift transitioning driving On by annual on X RX in made X increase line. efficiencies from rate. possible units. making is fixed RX to progress greater operation, This capacity line

expect While profile. to until these these don't we improved of to position second benefits XXXX XXXX, with we believe a exit half changes the margin fully realize Rivian much

the expenses. In we've addition, progress year, meaningful since made optimizing the operating of beginning

We half. below the enables to adjusted believe XXXX expenses our half to the expect XXXX, Rivian baseline be operating more down to expenses significantly to with operating compared cost slightly expected second with the as for structure. efficient start be year this a first We

cash the We its improve capacity. believe flow, operating extend allow of free are and annual at XXX,XXX these map, confident market that share. We gain cost profitability executing growth production efficiency will changes excluding while capital new to normal positive best production investments against long-term and cash our generate Rivian units to position business road runway,

Turning to our guidance.

production guidance our are vehicles. We XXXX XX,XXX of reiterating

grow As early single-digits And team for that well place for we're our RX has our total activities, the vans compared as as deliveries brand as the put by both the the RJ have over awareness by which mentioned, in quarter. and to I results XXXX. will confidence past of commercial low year go-to-market encouraged

reiterating also guidance of $X.X are negative XXXX billion. our We EBITDA adjusted

expenditures million ways the reducing to capital and move due to of to our We continue decision billion. XXXX to to we guidance line look for Normal, by $X.X the to our first RX $XXX are production CapEx rationalize

from which expect decision be savings approximately impact also $X.X this the expect billion. to CapEx, XXXX will We we

cash in plant expansion. Normal of million year $XXX fund from our Illinois approximately the State receive help to to proceeds plan we Additionally, this

their margin Over continue the EBITDA see a adjusted we free and to margin XX% target long flow high customers, that, for approximately approximately call shareholders our over XX% cash tremendous clear back want our and for open partners, team, support. With operator to, to the the turn to me again, thank the let Q&A. term, target. I to gross path margin target, teens line suppliers

[Operator from Goldman question Mark with Delaney Instructions] comes Our Sachs. first

have initiatives, that Claire, you've and talked could to including you you confidence of rolling said traction a modest could more growth in have available, items year, those growth want be seen there variants more you that share deliveries confidence elaborate some that you out some the and to some states some the from and year? about giving this become of delivery also you leasing the bit what's on guide volume some Pack new like for Standard, this

Mark. Thanks,

As XX QX RXS, introduced by we we've that launch we that driven think been number was to we that really the up leasing some now as and coming of able the initiatives, our the we've states to be over quarters including seen about our from to expand XX results demand, broader of leasing. leasing it's the that around the we'll for early go-to-market quarter offer north of and of well. adding first confidence

the inclusion the you the a seat the this that had we course And the introduction well some of As to product of whole. of the tactic was compelling launch but Pack the grow and of bottom and least test Standard, certainly RX us had over been to certainly stretch of reveal as key the as more evidenced well. And interest customers RXX a QX. that RX think into on then for that in that last the drives initiative Rivian noted, generated entry awareness itself, the broad-based opportunity XX,XXX launched over has I the ability brand as RX getting as significant the we of another through was quarter, not point our and course driver price end of the by we've

fourth reiterated My needed question next you the positive was is to tracking of in level? your Shareholder of in helpful. to And in year, terms that target inputs some path extent reach which relative on a that what order put to the the bit you the a how gross to key to XQ around of it reach quarter Can all profit to this That's the today. in share Letter? at you get 'XX more changed

a that and The cost with EDV. step remains within in of reduction. cost we driver predominantly our RXNS in of we driven costs already the by RXT, design in positive well negotiated the profit as this vehicles, cost focused material us each for the reduction. In see variable change material as by RX our And introduction largest expect for saw to path changes cost improvements QX, we've our gross engineering-driven material material to suppliers. improvement the changes category, it's driven And

sourcing tailwinds well We also expect second to the added see commodity the from commercial as in half as RX of cost our ongoing benefit on downs. XXXX

in the by semi-fixed Next, to rate line Normal And tooling which improvement: to drivers and X an as enable revenue we decline expense unit turning increased upgrades we've depreciation revenue QX. us regulatory and reduces overhead our per-unit key our software as to about in for past, the past as the incurred our the we expect is in depreciate remarketing roughly sales. fully increase the costs. original final delivered of There of also per ability in our accelerated the talked by The plant tooling QX made we labor due moved to and XX%, some as our increase well credits, we depreciation see sales the are services lever, costs.

confident feel our profit we're continue gross have year. a of So we summary, QX road that achieve to positive in against and executing to path and plan this detailed map in our in

question comes Morgan Adam next with from Our Stanley. Jonas

worthwhile from let for player a with provide you it story doesn't want unless I'm of ilk put a loans, technically in that a Rivian to would already this have collaborating the assume vehicle going potentially what would Amazon you way, to. widespread you're that electric comment an be maker RJ, So player not me today of to be it what of work to But that, or you support benefit a And to I start-up, large already? with going like to follow-up. and strategically on

the Thanks, today history They shareholder foundational of what very majority of integration the largest launching market to, were core Adam. vehicle and Amazon, rumors the represent a to as arm just about we of business. electronics elements today really platforms. and on our this a course, you our business and of avenues, a a But vertical we or we've makes around partner Yes, across been that alluded associated has and software built comment close sales. But don't one partnership variety vast the our of company, who's commercial the a of commercial think of speculation. level as is have we as core element the of unique

in computers rely up but vehicle us the the strength, base ECUs through opportunities various lot all operating to the the suppliers ourselves the the also certainly. and then system for X the without creating partnership software, need vehicle gives So the of Tier layer, applications on and the those essentially base across creates way a customer-facing

RJ, as on Driver I collection XX sensors, capabilities, and your XX vehicles, that, data ultrasonic just exterior focused to Plus, radars. a ADAS then follow-up if cameras, X

got vertical architecture. and ECUs You the you integrated, mentioned custom your compute,

And I was fleet net GenAI there's forth due that, through in autonomous to drives so, year of curious allocate from working think also revolution get to program achieving their you and otherwise and training. you end-to-end of access in more been it clusters of your people I'm of have a to change in and to last is Amazon compute, CapEx rival X autonomy hearing closer Apple super part in ADAS robotics that to get Tesla with and your LLM directly on NVIDIA and compute autonomy? order partners with you field the doing your that or team real way hyperscalers if hours through that that -- does you we're witnessed then your to all than either as GPU canceled. And it before that? and profile if car how concur did bringing can neural CapEx your learning

continues particular, just key to And made early perception only access is And the vehicle, over to perceive a create around element to best with allows by -- to of situation question, have that what the a which information. are to early radars agree fusion sourced and the controlling that time You of that response the is a in systems something entirety and deliver the should of is with, more better made us really far autonomy best we stack. not you information controls the vehicle in the of the the leverage set to for for a while, third-party get third-party the us the perception sensors the really controlling challenge it stack and that fusion point the sensor that loop do next. And nature allows cameras software the but perceptions becomes the we've grow best strong platform that opportunity that source the learning and built to collection or limited. through and that, which of

autonomous we've to a and of models how data then we continue so and progress particular, entirety coming also drive on the com use lot our around of really the the platform. our training the what's into platforms really to in control all architected And controlling of platforms future in

to over large a you but clusters the driving very ultimately, lots as of of robustness point build into out, build-out models, to train help and a them, time the ways requires -- Now it of run CPUs models. our training there's large

from Our Bank John America. with comes next of question Murphy

first R.J. question, a Just

managing XX, the the looking X just and got at unveiled portfolio? maybe probably we ramp I'm we've through you X How to where think X point Now going portfolio. this then manage we're that's and kind time vehicle refreshes be of X, of X the to X in? be that X of be point? just it software-defined the going this a of in do and curious XX. a curious becoming up not see complete you're continuous what's at a we're Just as and churns how improvement to get at vehicles the to going you of Or of reinvesting to sort something I'm portfolio going over kind the over and portfolio there's robust is to time? pretty is

to the represents of as to of the doesn't The its John. product introducing and for its really importantly, largest was RX But access such customers. market. with that handshake position Yes. part as platform the Rivian flagship company Thanks, terms flagship price of as brand it a world our because a as the in us product, point us is a allow

And of so step XXXX, and really so the which the go products, platform a from focus launch using can after RX platform, company scale far make on is what change represents RX what as that better products over underpins RX, continue as a and the better for addressable of us first our RX you'll a the market RX us, of important and our with that RX heavy a in be and to the business. And half demonstrated see in software time. whether midsize we is to for we've the or vehicles continue really to

that And opening customer over remarks, really vehicle. And we every every noted they in moment on I creates vehicle XX air has so couple over a track owners my folks RX number a of and that our better platform get updates community online these the when a of it this the led there's had vibrant launched weeks. detail releases to the see we've following of since the for as excitement

absolutely a foundational and known we're and what to we is ownership very we've a is maintain historically a so business of going to different car. type relative And something us owning core to this creates and as experience is think,

X-year make that the back change X form years. cycle. I'm a that mean up turnover to you get And rationally where kind a product that vehicles a [indiscernible] physical mean, a X [indiscernible] I just and think that's can cycle product the somewhat [indiscernible] [indiscernible] it's of -- portfolio that. years. you could to look of on basically mean X- basis really and I X folks in X follow not yet question maybe stay do to if kind [indiscernible] [indiscernible] just on I on there's

is strong very realize just bricks but that different, curious It's philosophy the [indiscernible] for we're they [indiscernible]. black believe not You portfolio, actually but that for about early days the that product also seeing there. I'm

about design continues to better cost think believe is that skin. going ago product a static would X, emphasized released. the here. that improvements is timeless a with the and what's in on this really, be moment rather a to improvements. think get continue how old and really would design and significant the of needs to came make It's the moment change launch make a the while provides under us, often realizing a we've cycle, nuanced the us the that looks I and as set what and we we launching progress just the vehicle of something something life has the to cost that's but historically, exterior vehicles, product changes it a thought And as But coming which something the element also talked element we we And product, so X vehicles with the years its much when you update lot about to brand. efficiency between or after design building X a product be, And less already get out, product And but to months of product that's we until company wouldn't That's update for it's I said, that software, not timeless today. We out. that time. of that's over And better, also, hardware actually of over course, there's structure. do improvements build to compute, the time. don't feels the think sensor continues like improve approach opportunity what really of occur nature

what if [indiscernible], that just pro on Normal the Georgia for to there's even you goes think other plant, would but if think were you I other infrastructure, you're like sound lower could -- things how for how one it billion capital? though you changing think much capital plant more the yet. -- that, be? to follow-up ask like capital that it plant. just the from directly doesn't can It from you performing the but $X.XX getting And Okay. roughly is the the lower XXX going I do sounds to lower it not versus would much Illinois to just that you're do But capital mean forma XXX

to well Illinois savings in as But $X.XX incremental as the had with revealed that them. think the is, I communicated I each that is I prepared tax which Georgia's most pinpoint of State billion RX. in package of the receive John, my year. million and payroll being this as associated incentives $XXX term, mentioned comparison incentives, the roughly near we'll Both direct we cash upfront Illinois, is would of we that from when remarks, Senate as

comes question from Barclays. Dan next Our with Levy

to for get probably you on a unit specifically, to the planning get it base -- start And per of trajectory. you're a doing if question $XX,XXX to on in gross mid-$XX,XXX Wanted RX, doing, you're need with call it, price COGS decent range. that margin, a sort high any COGS if means

call did, just You it, mid-XXXs. like

a less of talking little we're COGS almost about improvement So in unit. $XXX,XXX,

Any help conceptually per of it's to understand what's So you easier, it's down COGS there's trickier? maybe partially directionally would you is we a in scale. to can helpful. just how I need today bridge where RX. unit partially decontenting, be on you us or understand your much maybe control, could bit pieces, smaller sort form But just framework be how walk what's the through factor, from

Thanks, Dan.

goods improve on before, the materially reiterate a RX I product, which what its is, cycle life Claire to are First, we said want sold. just to cost on of

not play implement are year. And we the changes improve the of the so The that of changes and large integrate also we're a out to process that just through focused plant the to went very rate over was reason vehicle to increase for only going the shutdown costs. that on but flow in course see into the number to XX%, production by

cost part eliminated And body elimination updated this all a with been well changeover, of materials different going or processes. optimized or are example, part through different or the consolidated examples, areas designs or we've suppliers, new are where that cost, of structure, was XX%. there or vehicle actually around parts without reduction consolidation where through those even for on parts. of areas So the And have designs part redesigning using in that's excess part the

will needed, years supplemented view is have product RX it's of be of very into decision it's of of not fundamentally the of body when And then every different in the it goes has function we also is different materially every by negotiated requirements as off still forward can and through every supply part, whereas component, RX, flagship It's the of, the system? RX lens relationships on vehicle of a off-road part has. supplier that very set be And that partner on but capability, relationship, terms But system, we and a view. consolidated, road, cost point the leading another that's different capable that partner to of can So system set a on from structure there take, very wind architecture product performed RX integration architecture. RX part by be different the the requirements. a extreme built a set true we to every ago. to of point and are we extreme vehicle what

come it few our And just reiterate on vehicle. execute and bullish requires it. forms. part to to to very complete RX improvements. die the It in we But the a on remain as of one together of cost we those, can us course, many a but full ability on the pull the sourcing is is so the it program consolidation, deliver way structure. of Use I achieve casting significant out examples, high-pressure set of to called And

Another have parts is to more do thing. than to one

use top an is pack of the of the the floor the example. battery So as vehicle of the

location the of and appreciated, RX. really of actuating ECUs sensing simplified the versus design. for We in of And from have those electrical the but to systems significant number the ECUs point then opportunity massively doors often well minimize minimize to closure the harness they're as RX in an just or the vehicle whatever view optimize is as not

the and as significant learnings cost across And necessary COGS most into recent from to is in RXT, can shutdown, those types program to we so as making targets. make of holistically, we're the RX but roll the reductions the said, EDV leading those RXS, we all leveraging RX the aggressive board, the changes, you which sure achieve,

just helpful. vertical That's follow-up Maybe a integration. on

you can partners Georgia that I us past? efficiency. understand Normal maybe of move any if sense amid about instead you And on you're your RX But level relying so pursuing that key a differently into are still in versus and capital the just about understand vertical strategy, of thinking level you're integration differently thinking integration the but any have you very to I a one would give vertical more is strategy, bit the maybe obviously vertical done that what put pivot, this integration. of maybe to was the of in-house

by the rather which then not function vehicle. By of for exception within of Tier I vast, controllers a referenced easily areas the consolidate and Tier but those of majority versus suppliers is software one of electrical essentially us but what those a the control associated pursue all architecture Sure. the the controlling the And that that's just X approach really running to is a vehicle, one bit, variety all the vast in the all it architecture what X across it allows controlling the vehicle manufacturer, heavy those computers, more ECUs, functions, platforms. across zones. manufacturers key domain, much network -- for us of other that Dan, provide

customers. RX And deep area of controls air convicted on those in we heavy I of do up advantages an it year in that a investment stack RX that's but where cost, necessary across of simplification to functions I remain of set the color architecture vehicle things introducing all in real amount We've meaningful this of a that doing are from going developed RX, rather and say the RX, mean the the improving by not vehicle. And zoner that updates. call over changing to topology, the build as the changes is the So network that the terms part that's controller, process results cost-down very the be -- simplifies and, creates changing what a deep, We're control the experience that been also real where savings architecture, from what realized already but facing just of of in in that really we for measured the the seen RX. quite in platforms features, of simplification, with dollars that over the performance, of all thermal we area. just that's on that build measured capability, ECU up, made drives, screen, with us the not to fact, be is vehicle dollars, and the the vehicle of benefits the possible this the significant. And can the hundreds advantages the thousands the we've of leverage updates. will of harness process. allow will also But that will performance, way those all When all lot the course, of that's ownership launch improving battery RX Rivian software into

the high-voltage look we talked way a about at So systems. electronics, the approached RX. And this we've this launch important and of to of also I've software extends also a it's as that note can while to derisking

around. our RX by areas So technology building associated advantages battery of owning inverters, battery high we've it these modules, developed packs, with has of a really coming cost all see But it. batteries these And RX, course, that areas the units, with these by in-house. significant and fixed online, cost structural at in-house are areas drive scale we or

Canaccord Our Gianarikas with next comes Genuity. from question George

I think out switch gone? new what you've would to some can be to suppliers I how you up. you also decided in appreciated. mentioned have in relationships the there? your And as prepared of terms share experience there the supply back the know lines you're remarks that Curious bringing and any detail

and of the start line and single April, a as unique the robots new feeling. a a was higher hundreds stopped walking it robots since the walk allow a run seeing a our production you it at bit And of hadn't in to the We vehicle start the to design, plant, plant or so without through. your of plant you seen gave saw was of launch month, feeling that updated as the of stomach interesting. modified We on vehicle of you production new the we rate. of new George, precision sort in of through we hundreds and -- equipment, started the in at XX% and into line much execution letter, the integrating process a at

of manifest solving see see again in it's put the April before, the to areas to not place, the the sold to And a across all we're changes and on it overall gross in part goods of in the these plant some and the base, orchestra the to those to then map the new number and the suppliers our cost full supply to efficiency was to that running our of the line the margin. we that road was board to exciting very And both into of really that plant see COGS appropriate drive come into some level. over change have the the least. of costs and structure. It have materials vehicle changes the in existed improvements -- excited of in large And in significant the of focus where designs, course, we our a of our the intensity suppliers amazing plant to at solving portion to positive have executed updated were effort say with and challenges felt those build activities, and an new

you is coming maybe know And the of a in RX that follow-up, half as mentioned first Great. I 'XX.

are to forward potentially the terms timing? of that opportunities what pull in So

the of Normal The it. there's existing before drove in the decision harder taken us $X.XX time, But many measure things that talked RX capital we've Normal. was the to a shop associated the members. to RX out lot built savings numbers of lot we'll and able that the our And And level but RX team and the is launch it. level. pull something and director was to in operations plant, that I billion to the what's be floor buildup -- that, of now into it it's the teams to of about capabilities, just plant, allowed capabilities, spend leverage, and beyond time of takes group those -- on to time leverage half training the with only strong risk And strong and first not with the have but ability at leadership of leader a lot teams, we learning teams team timing, leader, Claire at out the the XXXX. across the at a leadership us with manager -- of

the But we base producing as to have that sure the about all to also product make can issues not our own. hits RX in forward, base really it's the what it's with that our would ensure driving supply ensure RX XXXX many relationships from it ready want of at not we important are better scale a from us supply amount through it relaunch we from excitement importance a ramp EDV that at is launch, isn't to we of through stronger. And there's the market pull is for supply is palpable, the sure but smooth as step control across Rivian we RXT person we cost of see we producing efficacy think that on within point the robust, the to possible, love that and to just but launch, one product single the post of also number there making as from the for robustness The sooner. is on we our trying have find our events a quickly. sure chain, now Now launch of gone clarity launch learning cost launch, excitement RX a the a ways notwithstanding ensure RXS EDV making of of all quality post plant, very as have and aren't view, relaunch launch the is downs. launch, but we supply when exceptional We've RX getting of of scale with to both each and view, not to downs the course, of the to point

comes question next Piper Sandler. Potter from Our with Alex

Perfect.

extent So with talk lot a I'm next, what now? as the the there exists now heavy like X could any the is it look retooling? or gone lifting of will if with To through plant the about right months, execution what wondering Normal X you've risk to you that in call it, ramp remaining

And the we efficiency to reduction improved efficiency the changes we're in really is the sold. the on of with with time cost out was relaunch. excitement post to out, through running The I into made real. around energy things are team just line to and plant going Coming of excited flow, goods within Alex. pull and lay cycle material how forward a and see is launch, overall the on that the Thanks, deliver improved quality palpable,

and it. facility. it's that, with the said that I And at ramp a in Now as of turns following ramp there with full a discussion, the if that, planned not ties on previous suppliers. to the as plant associated prescribed my is We're immediately so rate, back

the in many number So made And with along of given we base, ramping suppliers us. need our also those our make the ramping suppliers, with to changes cases, supply new at sure rate. suppliers are are same we've

also so remain Normal ingest getting in -- the happening, that that's ready RX. also ensuring as we're that to And all is really focused on plant

seamless investments well. as the And RX capital number as is as into ramp Normal making so there's possible a we're to efficient of ensure and

OpEx. first I to looks the then OpEx wanted going to second spending to is And back Perfect. something It half mentioned half. relative regarding Claire be like go Okay. down to

on won't the Just second on you spending marketing now in outreach. or wondering spending Is it half. what you're you in that that spend on and half the be did this is first what

drives You and lot RX of and that RX test mentioned unveiling. things after the with a nature

or that helpful. on -- any clarity just be maybe R&D, additional it's would Just

Sure.

off as made to with in point R&D first upgrades that there of the lines QX short the incremental of took is, and QX and we April well in We'll were succession. buildup first half we year had the Normal, the up that associated the shutdown spend we that. and support in the that back the order So time based the to contractors the levels into of that of in course see bring throughout tooling increase higher

so the versus both as And of figures. on the vans the as as of then focus the the RJ And mentioned, from as year, results R&D seeing our across commercial pivot and half RX work more beyond and around to half second starts focus the as development we look RX to an perspective incremental driving first well efficiency you're RX whole. organization the in and that, that a we're constantly focus

make so and teams making SG&A And as our in sales between which areas that until for expense whole. that other investments ways we're go-to-market reduce the in room service can in of to we a finding

our so half our operating expenses change for that what's year, step intensity OpEx. also path XXXX seeing to reduce the and overall reduction second importantly, enabling And focus but that is in

Rosner Bank. from with our And Emmanuel question comes Deutsche next

quantify control. of that benefit My first in that expecting your completed. is some and us help the now shutdown you're you the question the are upgrades is completed that Could

So they understand it was hoping to better.

like So $X,XXX of be rate. per loss not may you QX, had a a vehicle sort $XX,XXX of in run that

goods for cost? you And in your to that realistic So of per get a you sort of starting have vehicle how essentially call completed? improve the have it in like assume actions we to revenues do is of How bill as just How terms assume? fixed or towards per Or pricing that of much terms gross positive to do on vehicle? reduction see profit of extra maybe or we point. the a $XX,XXX much sold to loss material vehicle result could of per much cost

results continue to execution as you call, those we sight into see our provided at Emmanuel, in bridge map road look we a QX detailed of -- the achieve and earnings aggregate. line back to at

our responses, in we as significant introduce RX QX Unit Enduro we savings some our where well of design-driven one changes of to similar a in of to to we ahead ourselves largest reduction our of LFP reduction mentioned cost well have the costs engineering is when EDV as the Drive in new the saw what material saw costs. There's variable material we pack XX% in as the the that making my I in that downtime as of conserve as into itself, took through changes the we're introduction coming 'XX As And material costs. well.

of as as well. And and begin as that retooling depreciation the unit a with lap see fully we per upgrade labor the efficiency our our rate reductions we'll a given clear semi-fixed then the material help decrease throughout have operational go-forward dynamics our the start increase this we quarter, had enable I will improvements into expense accelerated overhead to going this tooling line in we'll course unit our to the mentioned, in cost that fact going of year and XX% some similarly, that depreciate off depreciation reductions visibility itself, in cost I see that into and the is basis. there's per with So those anticipate plant that in original on as also improvements also come we to well. in of And that will depreciation

significant underlying then the towards points, assumptions single volumes in for we every of Beyond point And price making is we an from relative our price we'll LCNRB that terms mentioned some increase of last well to XXXX vehicle as the we QX that, benefits anticipation as see and overall equally associated not as similar in as back our perspective. of volume a on drive money half call, additional the QX year on 'XX a sell. both with earnings in ASP

well revenues gross and of of achieve sales enable to in from our equally profit the the then electrification per really revenue quarter. credits, especially market, their many in driver software ongoing away a regulatory will that sale robust seen OEMs we've by really our the as non-vehicle stepping as predominantly credits that some unit regulatory is appetite streams of revenue plans marketing for the So and the back services Rivian driven streams, revenue fourth positive with

helpful. on Okay. the just And side. one then That's follow-up volume

that I comment the that the now in a remarks completed. think shutdown prepared made is you

minus plus You it? in units have the RX RX shutdown the capacity? sort way XXXX? XX,XXX next units of EVDs. until terms that think of max of XX,XXX essentially go-forward you'll capacity the to some RX essentially, of may launches value have, annual be let a RX it's maximum you let's level all in right growth any now about top Rivian, see RX XX,XXX year, say, shifts. for X that for of that a the on on Is this of first comes But So half on basis And is annual impact in of then of

Sure.

a couple of want make. points I to there's So

for units think of we capacity can RX, XXX,XXX capacity XXX,XXX as capacity Normal, we're introduction of the of aggregate. units First, have between RX. where shift longer-term RX in towards XX,XXX And about of capacity commercial that we'll building in and lines units XX,XXX RX for vehicle for vans maximum units

So have the matrix, we'll volumes ability that XXX,XXX to stay total within of the balance of to within units capacity. flex maximum the

could shifts on X that running on so commercial single X And be shift example, RX, full for a achieved, on vans. RX and shifts

it we So accurate. think is there's the longer-term flexibility volumes about but as

will units As operation. you that noted, XX,XXX the RX off volumes of be X-shift based the

And our Patil Shreyas Wolfe from comes with question Research. next

you and speed packs, ECU innovations curious that the of just RX around giga lot move into architecture. as it's still how ramp with about up could already structural should we I'm which you've battery we I 'XX. but know the think talked at RJ, a castings about early, the simplified

production think gets we pace which the you should to at get RX how once volume Just about going? could

out. there's just elements call Shreyas, X I'd

is, the of is organization, in the strength and first that wind then and back given running process growth launched entire iterations launch. the much are of a number I blends first of where development our in And RXT there. we've learning our if terms into process the so launch operations our strength and higher we we launched the experience strength products and The when number through a gone of the just to managing of we've today, as as our launch the clock relative teams of company

for base smooth are, foremost, supply that support making said, can key and the enablers a So launch with sure launch. first the

place of have the to plan. the And ramp putting will support supply those a ramp-up procuring not at the robust of supply are And responsible ensuring also built the up. quickly that components base team rapid possible. launch of suppliers importantly, rapid those those and of but so we've also it's only in those contracts, supplier -- the course, and as development the a quality levels chain is components Everybody that in wants interest ramp as our relationships of

So the health say health the ramp been we'll demonstrate see way but of also launch. what product has just the re-ramp process, what eco of is, the our we the the that designed And our out of with our I by seen evidenced of managing call also We've only RX. not ramp the it EDV of it re-ramp should in-house will base to We've program. But seen with units. the item from with for I'd this nature supply drive easily. we're the the last for here should the and post be

focus the last and design either addressed RX we've encountered items years. over RX to design So really put vehicle the efficient a any on takes X very on on away that us have and together heavy easily an the risk that or of allows

clarification a that I about. the maybe And of for initiatives does also of the that's you is QX? make rate secondly, calculation. talked profit talk for reaching if in the EBITDA from to excluded from efficiency just fourth wanted revenue run that target. It you cost first, like that the this excluded When sure profit looks exclude of year, been And a then about Claire. point just quarter figure gross gross various that's

Sure, Shreyas.

As really predominantly charges had and of we some in of those we in look changes related some the shutdown QX itself. similar Peregrine we that expect contracts as that there the year to this to mentioned we supplier of QX, were to don't be

positive gross be sets of the for a expect basis QX as full profit do go-forward we on achieving up we positive the So us XXXX that to gross profit as think for well. year quarter, nicely and about

And Spak question from our Joseph UBS. with last comes

had Claire, shop. -- what's plant I changes. know capacity that accurate? still back to because And after additional an the go understanding that that, was commentary XXX of sort said are paint going adding requires that? timing launch wait the launch, in My to an the how you addition to like sort launch? Or -- Is to RX for is that of start going you RX Because going to see before some be of the of that is like I advance capacity? you

we of capacity as total at XXX,XXX look different the units capacity. we're strategies of Joe, evaluating Sure. to paint the in a shop plant, number the achieve

be additional And could capacity beyond that. so shop that existing paint adding our could be within that

something at at looking it's we're studying. So actively

capacity of rate paint that the then, [indiscernible] in paint or it's shop XXX. shop current the below

The units the current in capacity is XXX,XXX shop. paint

a the increase significant. And like XX% ride, R.J., then feels on the just demand generation demo that activities, like XX,XXX

you getting though, and how generation what Is right? it about could should The us seems take the Or you the customers You vehicle Like mentioned there like mentioned is tell this great. what XX,XXX book, strategy. like improvement on dependent effective demos potential we Obviously, is a demand because that? help in like an anything that's we context measure quarter, that. guide is order should last and drive conversion? would

that understand or sort think I number? we -- conversion take should So it's context how what like important of either to

really way translating down then Yes, Joe, of demo demand drives us awareness my as demand the that remarks, is through top critical and focus purchase. top brand, opening all of funnel the expanding in for terms I said in funnel of a of

a of XXXX. roughly did in XX,XXX over QX that that's we drives XX% demo that drives test so in increase gave QX, what And we or

result step-up of that significant the to those of lot encouraged leveraging administer program, test one it's of service and it also us the So results. by have. a many a really -- we our was it's network initiatives and of we're drives, but

We and which expand creating RX, the awareness to do And encouraged that which seeing. outstanding make the brand, we've early I of includes want leasing the RXS. program, call just launched effect around had I we're continued also now an just out, and RX by the our we're sure to results

So you're satisfied for hit year? guidance the book order to with that improvement in the the

encouraged my done we're said, I word. satisfied, what to far. we're as we've is so a satisfies funny -- job say with but we're Yes, And be never it course, -- say encouraged. I'd I'd of very

time have RJ to remarks. the the Scaringe call turn over all we That's for for back questions. I'd closing to like

into of in we're RX. to visual a these that with and to order for long-term which body about also the went thanks, of Claire RX The and proud achieve today. This the shutdown the work the potential from is starting talked, pulled representation a future Well, when we're a And few just margin that, was we talk I, that the precision RX context us really critical it the financials flow see to our that We've from teams was now and reramping of completed call into off, therefore, normal of, last physical in execution of for products able that we've and the joining of to It production everyone, about quarters that. following be through important have site. numbers about that now and step gross to course, the happy calls. But on us. look for talk the the step we our are forward and platform.

efficiency on most COGS, build across making the how it's we're see costs. can what of aspect conversion a specifically and and is we team we'll every more actually, that's driving effectiveness of driving in that's product, addressable and Rivian see you So the to of And into vehicles. improvements what expanding see the materials, of lower future an business but we just the idea markets not focused do, is cost point very incredibly esoteric price

a but business. And and continue. translates to course, It's entire the are some launching of of that we margin ties that of see going the RX RX. then, the about about, gross also realize profitability of XXXX. cultural that the even that of year in excited early we'll through talked to our Claire as As through equipment, focus benefits to to this starting demonstrating drive rest And path within of depreciation accelerated the heavy

So for thank our next look everybody, forward and to you, joining call.

Thank conclude the you for This your does program. participation.

great now may You have Everyone, a disconnect. evening.