Rivian Automotive (RIVN) 6 Aug 242024 Q2 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Rivian Second Quarter 2024 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions]

I would now like to hand the conference over to your speaker today, Tim Bei, Vice President, Investor Relations.

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

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

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

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

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

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

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

the underpins developing XXXX. RX in to towards a as well I'm profitability. call, To too. up I generation the introduction progress we aggressively RX During transition RX, first messages the vehicles depth and on potential drive recent in The progress Prior half value platform, the our which expect against our to I and second fundamental the making levers our to need full Day. our subsequent which underpinning reinforce during our update will drivers. quarter this we in generation want developments our recent goal include Investor as to key quarterly an of we're encouraged achieve details, provide highlight launch the to the conveyed key discussing of our the second ramping vision, of by midsize

our this a by driven beginning, J.D. superior of based integration. frame experience appeal study, such across deliver have developing The approach a satisfying performance condensed ability drive the of hardware, cost our The experiences our where software, in most certain continue improvement customer automotive and cost structural developing on and these brand significant we dramatically integrated vehicles from the years building product the gives demonstrated ability RX vehicle, the vertical long-term score customer spent highly and in autonomy the technologies key RX, From of costs and the RX and the industry. create We recent confidence us is the continual received benefits desire across vertically as Rivian time components highest is technologies intentional success by in reduce and to desirable to electrical propulsion. The Power lines. to advantages. to

technology stack The announced of a expand and the we Group. very into serve our substantially and Zonal products as prepare to year. moving in and our platform, to electrical associated industry-leading architecture. with market technology the As to platform the announcement on testament to validates electronics XX, platform expected expected joint is Volkswagen The and for software expected is applications venture June to software Rivian's our future technology and for of venture this close fourth technical joint we quarter the our partnership. work architecture Volkswagen software along the the foundation development in integration expect the well, software electric stream Group is

a to consumer to platform expect our integrated to technology shift deliver transitions is modular the scalable will connected, and help complex, create compelling highly and best services more positioned industry strongly vehicle more electrification. As accelerate we architectures, that auto smarter, products to we believe

the our deliveries, Group. of development with opportunity to second-generation RX want take also I joint and our of formation acknowledge Volkswagen our execute ramp production who team. to has this on to continued and RX venture

for event process normal. vehicle expected cost. in we incorporating second the improve cost-focused of manufacturing pivotal quarter upper while into the that platform to technologies company. new successfully This RX The completed and the time upgrade the retooling utilization improvements is are also XXXX, material operational During and a changes cycle

lowered with parts, reduced processes with For line X,XXX a XX% cost the complexity on example, RX These reduced vehicle the removing joints body contributed emphasis the to and heavy and have in associated chains and improvement rate. an we expected have nearly steps. production

encouraged introduction design, platform, new zonal commodity The performance a to architecture, variants. being new resumed with an Following with reengineered production retooling are completion cost entirely RX of The tailwinds the compute cost new upgrades second-generation have and suspension ramping second-generation most RX material and new the and the of early of expected RX commercial upgrade, enable autonomy with combined our engineering in-house we and and system. reduction. of units press vehicles significant are the significant drive platform, downs hundreds

to is want I emphasize Importantly, to go. there more

on costs and We costs material lower conversion are XXXX through focused reducing RX beyond costs.

the we RX, through cost of opportunities RX to reduce continue materials reductions. cost additional As seeing source to supplier further we for are

addition, venture favorable the believe In those Volkswagen food more and chipsets, systems. hardware circuit that from This us printed achieve assemblies board the allow to relates we all to joint Group content components, with will suppliers. expected pricing associated

to want which in and change in drive new capability I a cost. delve units, further represent second-generation significant

tri-motor in for XXX-horsepower XXXX, engineered X.X Ascent released the miles. review approximately These vehicles quarter. seconds, RXT is range. The offering while all X The all our per our to with to are in to underpins range XX The third and tri-motor of in-house. motor. now conserve configurations, indura start blend manufactured hour in second mean in estimated front tri-motor which tri-motor generation towards variant an and power the exceptional addition The delivers Quad of motors variants on deliveries rear motors miles system, end motor new expected the Ascent X fully a RX in motor one and motor in are motor mode dual includes of our and the XXX designed,

The We're and less XX-mile X.X positive. for less to in our motors. with Ascent quarters. seconds. coming quad-motor XX.X is our been than quad-motor the very second-generation drives RX delivers get excited small horsepower in more Feedback generation demo It than in designed available build. simultaneously XX better The to X to vehicle has is X,XXX and achieved secs adventure of on products X while for less a customers to sand costing peak

wake suppliers, products in carry up exciting This fossil We by ways future. sense enjoyable towards based every to but and day vehicles continue a urgency like This something the better. about consumers, day. are is experiencing employees, make on of combustion products desirable they're our world internal isn't possible for also just use every communities fuel-free would and thank to all design support to people characteristics really pull those attributes customers, deeply that better our to I is creating because that products including shareholders. the and thinking that environment, that vision, to our partners, transitioning who

I'll to Claire. that, call pass the With

RJ. Thanks,

quarter greater of second significant and progress technology XXXX, establishing we new business sheet, strengthening stack the During the further differentiated opportunities. cost of made nature efficiency balance our driving validating our

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

impacted retooling upgrade. by expected, quarter the planned with associated As production downtime second was

QX of production to strong our Our to quarter, quarter our starting to sold third inventory quarter goods line in to and RX. lower performance, inventory the balance be deliveries the through which below first-generation production majority were strong of expect finished throughout of continued the led as and we Due quarter levels. our our second results we deliveries be first volumes third ramp our with

was $XXX Total million. gross negative profit

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

vehicle $X,XXX of not cost the related do our approximately revenue initiatives, incurred our to In long-term addition, anticipate quarter delivered which structure. we per of in part efficiency we normalized being cost

reductions our second significant half cost see platform XXXX in to deliveries of RX we RX the and ramp expect second-generation of the our We as production during vehicles.

XXXX for write-down we LCNRV the RX our material quarter progress our association the efficiencies in reflects operational QX in second-generation and reduction vehicles. with the cost our compared making with reduction are associated to Additionally,

profit confident year of positive of the our path XXXX. to XXXX remain for full modest the fourth in We and quarter gross in

focused of other unit is leveraging long-term profitability of our services revenues. scaling revenues incremental help and include product RX to fixed gross our costs, of software team mix and material and reducing profit costs target through our driving our our delivered per Importantly, achieve costs XX%. RX term drivers key and on already out platform The pricing,

the with second quarter, the equally receipt with billion. definitive to achievement announced to additional of in regulatory to billion the investment form $X the the Volkswagen approvals. Group Volkswagen $X intention incremental size total an with associating of electrical of initial a have deal, architect During also Group milestones next-generation this The investments deal of certain joint we owned software the and for billion In controlled agreements, technology. $X venture are create and best-in-class subject made investments up completion of to and planned

we that are expect the criteria is of $X Assuming all full the intended to to flow Rivian. benefit met, billion

capital a and normal meaningful free short-term the flow joint and midsize and well investments capital path investments provide and to in efficiencies as opportunities in we In positive future Georgia, cost with $X revenue the addition to billion expense expected our initial of cash addition to to Rivian, through cash, enabling anticipate The the on incremental planned the are platform operating benefits equivalents Group, savings to and venture. materials, to RX through ramp as cash operations associated by of the Volkswagen scale.

deal will As year, RJ quarter the details we expect we to that of close provide mentioned, the additional and this time. fourth in at

our improvement focus is as working and operations the XXXX. across quarter, of improved During the greater to we XX% capital our to cash quarter reflective first the business. from This on second cost of flow efficiency compared continued

vehicle these for to of gross our our XXXX. cash second We further loss of will gross approximately compared we reduced and improvements trends profit per the inventory in reducing usage our balance. believe XXXX, made first $X,XXX result As quarter half in the by

of of are we of XXXX XX,XXX our to delivery billion. guidance capital billion and production ahead, expectations expenditures reaffirming $X.X of As $X.X low guidance XXXX, we look growth single-digit EBITDA as compared negative units,

currently coming units RX upgrade, of annual line in run As a results XX,XXX operation, we reminder, on out the retooling are rate the of which output. operating

Our line XX,XXX lid running to a a X-shift output run of is potential units. rail has currently on which van deliver commercial operation, the

the second XXXX, or ahead equipment new for facility into look that X our half plant first half not year upgrade of of month as than of will for XXXX during we producing integrate expect ahead and be X the launch. vehicles the As our we more normal we

see to We approximately XX% to XX% continue approximately a and clear free target. a high target target, margin margin long-term cash margin flow adjusted EBITDA teens path gross

for suppliers to thank their wanted tremendous support. our partners, again I customers, and team, shareholders

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

[Operator first George question Gianarikas comes from Instructions] Genuity. Canaccord with Our

about talk relationship? your strategy, please Maybe particularly just Europe start, geographic just to the of light BBE in recent can you in

George. Thanks,

As end Germany. today, primarily RX specifically are it products but sold States have products being the our -- and we Europe in in States, in stands deliveries the products United primarily made commercial United focused are Canada. are And some EDD and the throughout

in with of as you markets, market. terms and those our combination we and at a to of future midsize of crossover course, their to And RX developed capturing also regards X European fit a SUVs them been with in it also the not market with see really to the the products RX, but but core both you both look market. Now at addressing sweet can capturing RX-RX believe U.S. really what smaller our fit have European for spot only U.S.

is -- growth of in the things with as business. heard so about we're the is X excited times, addressable of this platform talk one us market And about just many so the you've us the for the

on your that VW into potential But I you the some a as JV? of working that. transfer is the follow-up there update maybe still to on you're And mentioned any through know relationship. details the OpEx

Yes.

built or us technical formed, is well As allowing enabling and topology you to joint the allow software enable and our that this sharing. to scale on quickly. beyond platform I network haven't was specifics architecture really stack think we -- of call course, cost around across any around VC announced our markets we venture, technology global to very Rivian's the it's and use, basis relationship the that we're And get how to line. importantly, product leveraging multiple and the out really But of to of formed associated want inclusive said, I'd

of those point of about terms consumers into the So that that we're that exciting that, helping move the choices in view go about that, towards think ecstatic provides chain create products point assemblies of that and to drive we supply a impact the We're systems. from scale sourcing about electrification. and can the view us also to a covenants give excited as

Mark next Delaney Goldman comes with Sachs. Our question from

to target quarter? hoping to seen I drivers in the all, margin the perhaps a company is First, we've bridge? incentive gross that positive how fourth as the mechanics utilizing was towards and gross better of you're tracking especially X.XX% things positive the like profit the understand at Has changes the that

Thanks, path positive X to QX. Mark. gross in drivers There still to are our key profit

the Investor material Gen lot cost Day reductions throughout time The our Spent and cost cost as our a anticipate the second this XXXX of commodity well. course cost map X negotiations well tailwinds year into variable improvement. first supplier that we the seeing with reduction had road introductions, we've is technology of the through as talking as the half that of associated about at new material

credits is per of by improved that we driver com line last fixed upgrade volumes, see our had Tri-Motor anticipate this growth about the production our XX%. increase normal, of you which we'll that our expense reduction remarks, leverage, the in approximately speak we an for as RXs the our RJ revenue business with in retooling is fixed revenue help cost increased drive of sale is leverage. rate as preowned as sales. depreciation prepared this and introduction production heard past, the talked across QX will And well the our introduction non-vehicle this, this us, key the the we together enabled has And as unit. the second cost about as through in by The his And well in from regulatory in and driver delivered seeing

QX, to We positive path very to continue profit vehicles. to it's gross remain limited Gen our X our in had note confident of our sales that QX important in results

themselves our of line as the we actions any that our seeing flow-through or whole. a actually production costs through results not as the you're throughout yet look of flow at we've material improvements So the made the QX

question improvement? XX% to as such the second motor pack, to the cost for second how was X compared achieve, My first think Gen to better material Gen. about looking You're the dual large the

savings cost you've potential think the to that you I improvements now seen from incorporate of not able you the there did some realize those you the news think out response and VW be have of may suppliers. some

cost early, can of to magnitude somewhat you able still see on share of bit improvements as a the may opportunity? you it's that realize some execute you're I So but on potential material expanded

Yes. the Thanks, Mark, for follow-up.

building with scale leverage go but the certainly we're of cost You're absolutely made technical months. that right. like-for-like RX. on last a materials over negotiations terms supplier see, There's to in There's based -- upon we relationship drove that's the that the more the XX% some and going that we're comes XX we've room with of the the not only changes applying the with with vehicle referenced to also Volkswagen, we vehicle reduction in for bill to that

see facility. do it's long-term also we're XX% here cost our gross progress And that margin towards normal of we these building goal in about for we reducing our materials, the continued efforts improvements drive see continued our as to so at to And -- on conversion talking And bringing production happen as RX also those plant. within the continued going progress be both come but costs normal leverage costs to cost the are well. fixed on the in conversion that's enhanced plant, from efficiency produced over the time, improvements -- we

Our comes Jeffries. Philippe question with from next Houchois

have customers us Could might kind One on first how you the customer A for on your idea the of of of release. Velo going EV questions when are update couple mentioned deal? is outside you might on have an give of and an trials me. in

question, The the the started programs and prove software non-Amazon the on the customers with of mile EDV Having the terms the we've excited really vehicles. through emissions is just past internal of vehicle. for deployed got pilot program of with the that as but relationship over in we is these Amazon. vehicle us robustness it for of also partnership running we're really we strength helpful a something platform to refine, of really Philippe. Thanks a able about not fleet large and is And the outstanding the basis the the we've in was offering impact carbon before, our combustion been per reducing surrounding

respective this we've of what a numbers digital this It's working an an have, in business pilots about a let's how of is changes serviced, so focus a And the of you're support infrastructure a distribution we've vans lot adding for a we RX XX, the when the these XXXX. the a that's each the of different by effective that in are of as XXX-plus models chargers it. talked charger appropriate about fulfillment And adding past, in reflective XX, over really for if operating -- what bigger decisions are been around more nature of and XX, of in necessary vehicles course many this than say, are where business build fleet. center new running or ramp-up thinking garage vehicles lot single center, these year, and pilots of of a out XX, significant center, large power fleets lot into, you're on vehicles for it's maybe large your running anticipation

what forward other these together off to put So driving the Amazon, looking Amazon. beyond learnings to we starting customers we with talk great and been about basis are that of are we've

can I squeeze If Right. another one.

and JV, terms between shared we able the cost I On regions. in to And accounting you disclose in quarter? to are extent the will fourth disclose around relationship, that QX. get of at might expected much how information some you point, might the a that Will the to close correctly, did lot Volkswagen Volkswagen with understand you of get and JV the we the JV -- the questions the be be

exactly. Yes,

with JV venture the the filing which Volkswagen of we once financial do be the Group to including associated expense financial with associated capital this year, the technology the cost we'll some on efficiencies the agreements pointed joint will operating longer-term and anticipate and additional So the impacts of is savings, we'll We the clarity provide closed, in incremental provide Rivian's as beyond being that definitive JV QX of trajectory material forecast anticipate revenues benefits, venture. Volkswagen seeing future joint to. and

question Barclays. Next Levy with from Dan comes

what to right earlier, in the about old starting point on you second you based Mark's how And in should some out inventory. just discounts? we could hit on you wondering dynamics unpack the seeing, margin. some where wanted -- question forget and because ASP help those quarter some flat from the ASPs were I needed you just think of perspective go XQ quarter gross to there guess, we the some I in you're hit if know the you to us of what where the maybe to was discounting back really I clear to use of to And ASP that need we believe about an for were the

just on the ASPs needed discounting the way right So targets? your to and look about anything for

of immediately first as introducing if is it's not production start production while to just what or the Dan. an we -- system. challenge generation a have The the a we second stop you no still, referenced, inventory Thanks, generation in exactly with update always course, is which producing product,

step pricing, we Gen burn the a capability. look deliveries production vehicles. attractive that and or as in just a X was that of We vehicles with through producing in and the start in the clear then really with that did don't our Gen said, bit, QX have Gen terms vehicles. we been between some of by the essentially, X our our in talking results delivering rather as system of variants them And X we've we're about quite change exceed And as but pricing of reflective of vehicles of those to seen the and X some you the at really differences shift vehicles. performance long-term the burn inventory we've of through X And in saw we Gen clear on there's very inventory. Gen the all down the pleased number So

range and the with of we to thermal quad-motor. operate. ongoing X have move in call the our terms particularly Acceleration that one. extremely out driving tri-motor price I'd that And outstanding is a a in has allowed of have a is The ASP, the high. the a forward where for really to price expectations we Gen want the vehicle, intense really Now to performance It's -- the off-road to saw big we efficiency introduction here first-generation step but is the the and first thing clear quicker. of is for us generation performance other quad-motor The tri-motor relative improved. occupy position for lot quad quad-motor upmarket space the in references,

-- over offer to to us very can sensitive, to to allows are the that vehicles well wide and And we and very the pricing a ] intentional. folks XX best to rate price over $XXX,XXX, that was so want up tri-motor And products build. quad-motor at was the dual-motor, of also that just [ but customers between over goal starting only going band what give that not the the of into

that just built choice We the certainly configurations And drivetrain a more trial which launched, we the premium of element also level variant maintain is higher is a new so that course, more content into delivering customers which with a package, Antrim is trim features. at point, this from But at have we of and another call but happening Antrim. help a is what providing price theater package those or this trim But a changes the originally more ASP. importantly, had. we've had

additional far our then be call, in QX because towards themselves we is then In be expect case overall we we that think the of the the of having of sales as to of which, complement made would our And stretch price of of delivered that consistent X we that more point, sit we that in the vehicles some aggregate, to RJ's to relative have expect color other And of on end our said QX just year. QX couple case back revenue of lift today. standard point, back 'XX business our comments the tri-motors had per earnings the 'XX. to to the a to which QX to past. prior expected here in QX seasonality points QX, we'll allow consistent packs the sales, for Maybe to $XX,XXX seasonality final ASP starting be comments, continue commercial we've of last of for that it's about in We indexed will year, us our with of as the still band ASPs relative unit up Amazon-related sales higher this which is still the for

Got it.

like sounds some there. mix it assumptions there's positive So in

or manner than this Just a what markets. reliant money the be that . a you as from of wanted capital the got perspective I -- follow-up, many wasn't to going efficient plan going on you think you a fact us What on a were if to do VW and markets. of the more go through to I And to does product the previously that sort table be consider wondering allow investment. fully this capital to capacity the

through sheet to heard support allows still the part as But our normal sheet and the this focus balance Investor what and but of normal, positive efficiency hyper-focused of capital from X it launch a we both driving to the to how still into facility. investment represents us our but cash of launching using terms both X and of all in of terms with recognize of how focus the is it. seen the of sheet us our what only importance point as part Claire in that of us you've in talked important balance the also of not view. on that support towards of Really for business, balance Day, I terms that a taking we deploy the point of flow. we've have view lot And operate the the our business, profitability really about and we for X, CapEx of and organization risk the on represents hyper-focused And our in eliminates scaling us on an is driving around launch that deal comes

Our next comes with from Spak question Joseph UBS.

dive little quickly. the the a RX bit line, back done happening could doing you expect given maybe Claire, is most next are can more exactly and RX what we year? pretty ramp plant that up impacting in of what's just the already then, RJ, changes the work can And that

gross -- properly down third could understand sounds calibrated there. planning that we So want improvement for sequential year that's maybe next in the of the we're recover until it then quarter shape you margins fourth because sure like quarter. guys maybe some are and downtime to just I make to

Sure, Joe.

into the we've to the taking operations changes the some 'XX, to this is said the integrate we we're while next about for roughly down a going necessary plant make we as looking be think year, production plant. of the So month RX

to to most work of the shutdown recent We will Some But in with conjunction of in already second work plan. our shutdown together parts X from sure Gen guidance We'll to did we to with to early very year integrate of working -- Gen part wanted the will and around happen plan RX. That's are next possible. appropriately this that, certain X our the did next splicing the make make preliminary X, move that's as going of to Gen provide half year the platform. be set expectations happen RX around plant what we have of has we've the Gen that for some the X the in happened. but on the in

just based not shutdown, of financial as question the -- your there given quarter look then part through as goals we some in our off margin as second look will And at be a of improvement chopping the we sequential well, the the gross trajectory.

to shutdown As normal volumes of had particular, some XXXX, I modest But given for to rate of QX shutdown. in that we'll of overhead itself in with were we lower like for still shutdown, of the we'll quarter, aftermath gross had the impacts year and mentioned the half, of right maintain -- entire back prework the the able the our in point, that get have itself. more of this off remarks, to absorption a in profit but in be facility some shutdown the that based we of that lower labor production second feel we positive akin experienced the QX depreciation November do of my up the to to RJ's certainly we we line

we expect see as as ramped up Gen a up already gating factors of a we've won't of chain, which the course technologies fact X we stage product. redesigned we have given back one through ramp our new supply in gone sort the of our that the So standpoint, ramping production up is from of

before Okay. number to if actually modestly know don't it out it to quarter. of at I quarter? the in profit regulatory seems you hit not true, I cost way. loss the But think you that's credits. correct. D&A is bit comp, curious really breakeven the also hit in you this closer vehicle certainly Is don't about and it even something per ever look And that that And know fourth little it cash impacts would out or the talk you that's actually by called we like positive stock like level. this talk gross you that you're gross if if take it directionally like from profit as gross about much a that's some you offset stuff would this your a ever seems a But second guys I'm -- about structure question, way. if

Yes, the impact call in depreciation prior my prepared we revenue that's per of had $X,XXX out just $XX,XXX per And unit right. quarter. wanted roughly other of remarks, $X,XXX absolutely to cost initiatives another unit, we stock-based then the in roughly of and comp

So respective roughly that you X adjustments. of make per those $XX,XXX was unit loss if

of we prior So gross hitting a positive cash certainly sort profit. would breakeven anticipate to

question comes Sandler. Potter Piper from next Our with Alex

what terms, just $X,XXX on unit, following one quick a that? that layman's I initiatives," is just the question. guess Claire, The up "other a last in

the significant suppliers what cost of certain terms, we we've it or layman's There Gen characterize the X in there. material contract Gen changes out we as you largely -- costs associated would imagine, of I to reflected In modifications from made, half are as with that's swapping can the and with amendments roughly move that made introduction way X. our is is

Okay. venture. Very joint good. I on Volkswagen my question is the guess second

into know doing sit you've I presumably, platform tight in the to procurement design QX. got actually of to and into Volkswagen out to guess, hashing meantime, being just out yet negotiations, have sort to to do on with do to they things the and behind the engineers eager them anything they presumably, basically Volkswagen something supplier information who with working sort the in they dry? comes await getting sit it restarting basically heft go you've design the are Are until instructed financial got supplier underway. and of tight? got But engineers, do the collaboratively when people are vehicles? allowed world some work to not you've is that start will of ink So Volkswagen for negotiations or Or Or I or start, instance,

to that Rivian are but we scale opportunity see beyond a lot suppliers product of some level the level technology the the you Group at venture long already within the just component we our an point this view, relationships seeing and of where this and imagine a vehicle, we've joint the product electronics From Volkswagen partnership. for associated very have into absolutely see portfolio. about This excited are is the the Volkswagen the supplier beyond and can developed, we that with with tailwinds line of -- at as

overall together you work -- if in this, not if is this without working of a a encouraging of the will. have So product, read-through done not creation actual as even early do but that's terms the deal, how Oliver a and the announcement CEO and spoke perceived this into supply and and at really And it's having a not really lot content done beyond around having work of of scale been we and or the technical teams of we deal Volkswagen about Group looked point it's together. this of view, been just work diligence, the by with we're I how chain. From well magnitude

platform call our invite Group but Wassym, our Volkswagen him a and just is about number And going talk which first products. so talk on this, seems deliver hardware of our to But the working the of been this. to here, into products, but about me software the that tactically let I'm what towards have set on team team elements of integrating first

extremely the integration we're electrical Thanks, that the with Yes. actually integration We're analysis. making excited RJ. architecture in -- progress

working driver that really, the been forward understanding scale down will demonstrator Arabian have Volkswagen the and Volkswagen stack, in a entire have closely and technology our well with portfolio. actually we're software Group, the how electronic contains electronic we Group the engineers components, and really Arabian moving Our very up with now and

Baird. question Kallo next Ben from Our comes with

term. is question first My near more

then the of building that to how is you Just RJ, job internally about measure my demand about that done -- context models? Can refresh. trends built talk you to you to you've to is your to if that you've that but could us any future how you've good a everyone, a you since extends And brand, question brand important guys, way seen you how talk can put or brand. second

building media certainly continued but better. us made it, variety saw recognizing a media automotive ways for ago there's the X from RX general echoed And on measure really with that. years that action more Ultimately, our And we to received perceived. the growth our of as into is we as see great lots for X lifestyle foundation to how it We Ben. across exciting something was pure And we world. Thanks, we're of first to and introduced a Alex, serves Gen how to it built. the was even those products products. you the that of brand put our to is wonderful we're set And technology, of This of -- positively. products -- a our of different And strong fee internally. as how our look really was handshake that took at recognizing we've what things RX outlets they strength the and

and But internal a the ways analyst brand. of I to whole at at community, important look have host that that We investor track regularly. metrics think third we our for is look parties would

under previous ways the out its in done volume. bullish than highly actually, most recently, of after importantly, the and take there's think vehicle And today does continually as the looks going a the #X, have J.D. strength the had price a combination came it for or market study. a strength RX. the appeal the $XX,XXX product and where U.S. rated represents our a past same lower #X product answers pretty of X we in the gap at pricing overall packaging study be If at great, and with share encouraging. the we've in market into well the I'd the brand in starting most and RX. at We're of veil best-selling prints strength that market, the on RX our that offering we in and really characterize to is in their severe exciting incredibly in performance $XX,XXX really we to segment years, with really need -- it this not in well product and that EVs previous apply where in same yet with choice of announced, that's And and bodes consent, brand for come carry real can can a compelling we market a sub-$XX,XXX having where look number what their brand we're one And extremely penetration that do If But we and and to #X $XX,XXX. brand terms strength what's recently but share category it's that strength in a of premium I over Power -- RX of annual at

Patil Our Shreyas from Research. next comes with question Wolf

opportunities some curious $XX of First terms are you we're can regulatory million seeing it legacy opportunities growing you're at be to the the credits sale given It right of in appreciate just that the the lumpy. in of this OEMs? sell seeing I But in with credits. was quarter. of struggles seeing all, what point,

across electrified of to strong line around companies the less more that of And have we generate or environment the in the is decision market investing regulatory think segments have our going reference revenue means And the across had to that more But credit regards I'd speaking, revenue. say planned be that so less and have fact originally But electrification now. a importantly or reflection in the to are certainly very what is a we and the practically number of points. market terms product multiple is potential our into Yes. right is -- anticipated. then that just price different than clear credit product I that top strong we credit the

think XXXX, void the demand us, see very coming XXXX where this demand. hybrid what just believe something much a form vehicle, be pool that's we hetero latent that's has product, of for that most factor, for very right a continue lot lot the waiting products positioning, so environment. that or so I siting There's environment creates like we combustion And is. buy seen type product the demand and a see haven't this is a for advantageous is but features, demand waiting. surface folks right an us, And us, that's into And to there's very, really product of to attributes credit RX going of important of on strong actually internal but read the of waiting sitting, through continue we have large they been for an buy the vehicle to

that software is, one middleware layers. is -- of it in-house system Great. baseline Okay. application thinking second is from built And the entirely to hypervisor architecture, the almost your in about operating my defining elements the question the

talked not about level of You've vertical having before really this integration. automakers, legacy

help here the over in big edge a is potential see OEMs, access But with the how legacy essentially, that competitive this is most still to industry for now you transition is advantage. to to even clearly, able an platform, replicate your to catch maintain advantage curious software this make VW those or long-term software. So industry you Do to approach, think essentially, the I'm now and about this an the monetize may you eventually that feel and will want asset vehicles? do the -- you this software-defined up opportunity

There's to a speak ways this. few to

before the and consolidation also significant call within get cost we think the of the electronic platform, a but first, to I meaningful advantages a will associated and allows it creates of architecture vehicle, differentiation within to XXX building number relative ECUs and VC neck not traditional vehicle. to have harness advantages, ECUs, the of of therefore, that which or for customer-facing only stack simplification and wiring infrastructure product that

our down talked And about X. so this, we that in-house we've reduced to X vehicle Gen at ECUs, XX

And so network have it approach. simpler a topology significant to a advantage lower structural is far computers traditional of and architecture cost than dollar that's cost multi-thousand and far

and first a cost real So advantage. foremost, there's

cost. respective systems with their partnership products turn components and will advantage to extend those which Volkswagen source that us bring and our at a it and well with course, scale Now allow of cost in as into will volume, lower

a owning consumer-facing of offer around lot view, just owning a really the owning architecture, as continue described, it represents what but not to the software a I optimized it the hardware make from better. is and point But to ability

center produce it's truly So more skins amongst you changing can become to robust, rich let's the many say over like players. the have or profile In the only deeply management for changes improve that's the into me require just your difficult on different where features can can the vehicle set you display. performs ECUs characteristics, way even rely But better complex lab better and software, way and small more vehicle and the battery of your cluster surface but when they changing way and more and coordination time. parties not dynamically third in up all very level rate so and a into charging the vehicle this associated changing than better get system

us can attritional minutes And can for take approach. so months that take things

spent be made I really of is consumer also performance is that that to before see choice. of than electrification, characterize not to we all that design, to and by be our combustion UI with our -- order we're customer us we which a the points I needs on. and platform, as choice highly that more and space would allows And so said, beyond this that is we and the to EV in them near they compelling the facilitated time by answer hope remotely in really space. amount the just world, And enormous enabled scale couple and products some of joint pretty There have we'll what mirror believe environment. around for the EVs compelling of XXX% vehicles. a extreme the experience lack digital being are need there the choice vehicle continue course, we've even the framework, like user design it There's And the in It's behaves, of a that have the the amount today. digital requires a experience, strong real the Volkswagen something what essentially venture that way lack to in something of approach also And to of differentiated it towards it but an bringing create both. we platform around to products drives and

with Jewsikow Ron from comes question next Our Guggenheim Securities.

quarter accelerates. think important as year XXXX gross about out to about is this spaces. past second fourth the the to way demand or profit you've to plan Rivian an opens the of being But the laid in geographies think talked for new order about just the those bridge to know your you've I there of intake what any part quarter? spaces, in half coming in launching is in RJ,

Yes.

of to of touch beyond consumers number them our XX begun with over them really experience called chance vehicles features. we've great spaces, and expansion be those to infrastructure to also a activating X And our have we spaces for we program. you the to to to service out, So next just firsthand launching support play our But as drive months months. sitting spaces all going -- ways our the demo have last the a X are over get to are that

only locations And but course, service they just more quarter-over-quarter, they have that we're locations so over sales-related as and service, and other not test we demo provide number service XX well month-over-month, than a that of drives support drive of do delivery those activities. and growing as,

venture close the our infrastructure, be our our network. charge later that build for summer, customers That's And experience Rivian Today, beyond, opening out to also we'll then this touch Rivian network. point brand. But to DC only. service network that's is to our for being And we're up. network another continuing fast a

and a and to way it for as which So exposure us the the is even to as a non-Rivian to brand customers exposure will great products company. experience as get a well, network allow folks to the use

values is kind Or follow-up of as maybe kind $XX of encapsulates more And know come this, quarter there gross like feel this half of on million to just the profit the $XX Yes. we or fully towards on breakeven? you it's suppose or do a zero-emission vehicles? back credit million in your -- question the probably revenues. year this Is this model quarter I you

And beyond Day, have are over for and Investor contracts XXXX we in of we itself. under 'XX there as well. for right at place mentioned Ron, $XXX regulatory additional million Yes, contract as credits now

the tip the iceberg the for about really our is and sale think of regulatory So credits. XXXX just we $XX of the million opportunity as

comes Gengaro question Stephen from Stifel. with And our next

I think me. for two

were The for just fourth more at Claire, this beyond, or first, out, that key X kind in expectations point? more about profit of points are gross and can less and confidence talk you visible and when any quarter less have progression laid are the the there or you we about the that talk

Sure.

the the for drivers, leverage variable visibility think everyone's unit. fixed is delivered we which into revenue that cost per improvement, we X and in increase benefit As have about cost

contracts sit piece, first the that contract. here are under one, today, with and the On our partners as we supplier

that Similarly, expense. increase as fixed in our So about we then efforts ramp as enabled will we leverage have that from clear a material by second see of the the production half cost the depreciation the year think the we the cost trajectory component visibility volumes. other into in there. be And cost-down reduction is we'll

the to alluded RJ now production. we're As call, X in years starter our anniversarying post earlier

of fully our to expense initial our the part associated depreciating tooling is reduction launch. our in some And related of with depreciation so

skew we again, revenue drive On right a little credits referenced think the trajectory delivered on unit under So into in the it And a I then well. the our this mix the increase And of set have just component regulatory us line will per final as well. from that of contract tri-motor as perspective. we're unit. that allow component now for again, you enable visibility this clear bit that then as to year higher about again, are our that end, sales ramping

we look So the of performance. have a as into visibility we lot second half

any CapEx not, this the 'XX, appreciate thinking one, sure Great. or and That's that. I'm on for we good should not color. you And quick if I other parameters about? comment be

Yes.

think that $X.X CapEx as estimate XXXX, be we've So in we in we about the the to past, area. mentioned spend for as roughly billion

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

excited platform. which around is us excited business. content, help that, product of to out componentry to up RX through everyone, our occurred continues you, our at architecture really issue, favorably the the also network seen the the stone leverages operations but the to that the bill that some to generation the within RX growing a with come to materials and associated stepping the the stack, to even a what's capability see what into cost I'm with was of particularly that for that of and really joining the updates plants, Yes. for drives have both efficacy reflects we're where business. the us and RX seen second today. laid and topology, continued us sets really within level, we've And to lot vehicles We're well software Thank for really architecture, transition progress the launch we're making the beyond -- the really for of a second-generation the seeing as important also RX customers with how with our track RX, be us structure the

So look again, joining. continued progress speaking for We're everybody to profitability and soon. forward and to efforts looking thanks, continued drive everyone, to forward to to

Thank you Thank concludes you. the for your This conference. participation.

disconnect. now may You