Rivian Automotive (RIVN) 7 Nov 242024 Q3 Earnings call transcript

Good day. Thank you for standing by. Welcome to Rivian's Third Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note that today's conference is being recorded. I will now hand the conference over to your speaker host Tim Bei, Vice President of Investor Relations. Please go ahead.

you Call. us thank Quarter Rivian's and Earnings XXXX afternoon, for for joining Third Good joined RJ our I'm our Today, by CFO; Claire and and McDonough, Founder; Javier Varela, Chief Officer. Scaringe, Operations our CEO

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

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

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

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

and Tim, going the about X joining specifically us RX you start by you, Thank talking all to the up. ramp Gen and thank for today. I'm

seeing improvements a experience hundreds the new we of call introduced performance in but plant we're of on the made efficiency. changes we've quad a of performance. well of a market the is design motors better excitement first-generation costs our changes our the a to lot those customer single cost also we're a and exceptional to a and with X, back, long-term trial, substantial the Those material around and than improvement enhance for excited in in much the cost First, Tri-Motor progress what and profitability that two we and Quad, the are of what And Performance to with it and Quad our and at as delivers with the lower manufacture really is terms vehicle. And changes critical it in also front bringing as the puts takes and the we're important efficiency the really XXXX. of but Gen other in lot business. updated focused went of variant, it the to one introduction of engineering that be also motor

chain has certainly is substantially, our of Now of bunch some priorities the those that, with our with there's ramp we're and suppliers new of hard brought in and business, supply have been very, as QX. And had or quite Gen for of saw this quarter quarter, of contracts, as address very that, to really of the challenges. issue, impacted a those by is introduced working particular, production short-term in this highest of with suppliers materials us supply challenges. in limited we're tough X, been a particular, around suppliers, of And some a This on really challenges in one seeing that. who new but the cost and we it is with because in XX% one those terms we bill has or and us

its Day, part talked the the of like-for-like a just the point set in been timing and a the underpinning terms it the what's components. really capability be design and XX% is Now we've to RX for XX%. cost going about the sourced us are It's into level materials the isn't X cost. the these as reduce all feels XX% cost through within by or at a And of Rivian it package in stands, the of of lot terms learnings built grown a at -- into program. a And is of our sourced from systems in of of we've of the reduction the a itself And on performance is it's we've RX. And aggressive about really targets on sort overall delivering this like but key to exciting. that doing about product today, but relative program. of that RX And relationships looks It's view, It's it's Gen the of went of design this that's Investor substantial And design allows advancing. the what program content a overall we've the to that bill a supplier the RX and also is that on ramp-up, RX of of going basis track. components, RX.

the all targeting that a the launch plant at facility this positions our the in and strongest that Beyond the key the XXXX. underway. into capture is, we're grading creating of line first just architected for here half that's level the sure share we are this hope market we've that's RX. The gone $XX,XXX flagship start also our capture but a RXs, site been of that's cost is of with course, The of production over with of And can we're done. one make really to to done what point, our key to same us work same objective at RX vehicles, our focus really excitement And something is at the level of RX, is unique share program $XX,XXX. and of the essentially normal. price of market and, vehicles marketplace. And players special to making excitement, the starting around in is and deliveries the expansions This well delivering course, level

this the for supply program. set both we're also the established are targets the from that And really driven the critical putting and course, learnings contracts being place we've on that's the for progress into plant, cost in so relationships the timing and the delivering RX of aggressive chain we've but

pack, using structural cells, And pack, on also we've something go the so Now millimeters the XX uniquely as cells relationship the a that and sulligical conjunction But of pack not time. diameter, battery designed of cells, just the actually the of vehicles. the structure quite XXXX forms millimeters And where element of into battery the core cells announced pack the of really some a sourcing for in a of battery cell been in is act structural of floor ] the that we holding with, XX the modules the vehicle. of working part course, where with top the This body. the is pack is And those a today LG [ for tall. we're program.

the delivering across making through program about is positive RX gross talked drive the are point these we've types of RX park with doing for so margin. us a healthy part to or we're decisions with which our price key at And elimination that consolidation, the efficiency cost but

into architecture, remain architecture, that Volkswagen body for also is Gen core put the It's leveraging vehicle continues And venture that and of really joint underpins Volkswagen. joint we've about, platform well. beyond to topology RX. our sourcing, venture that, and RX the structure, things We battery of a Now progress talked of about RX software the the the important of is some one stack with excited the the developed this. ECUs X electrical really elements other we

vehicles. technology impact so and seeing different can make its leveraging the drive about passionate are we into way many teams our Our through

are through the demonstrator these We hardware in product. put RX venture platform. other Volkswagen about have free software have the provided And only part cash joint our really our on talked a for These produce drivable in Georgia, Rivian RX us a but the into continued ultimately, production only by we've from where fund also past, take of the will flow. vehicles Volkswagen us. the the and through And we our we've this allow of Normal, the which that capital in this us and plus will capital to investments where launch Group launch but as growth allow midsized venture, important to joint of positive us not plant

of before, in RX, in restating to the $XX,XXX the California, draw it most see said in. electric hoping I help popular SUV We've to that California. that said, with the just level going SUV, ultimately, it's as creating popular I of driving most I so by just the vehicles with capabilities exciting what's features electrification. We're and customers internal transition RXS product SUV combustion not compelling helps as and [ and the that that's the over out the end highly through seen vehicle The vehicles, and of of in continue popular NTVs to ] is Now and want it RX. that's combustion customers being to the carry do importance excitement most and pull

this continue suppliers, course, around optimistic incredibly all us has we'd vision. what our That's to that our future. shareholders. focus. of employees, communities our support like our This those partners, customers, thank that's so lastly is and And the And our to

So I'll Claire. call the with that, pass to

Thanks, RJ.

made stack. greater quarter the the XXXX, third During technology driving cost nature efficiency our and differentiated progress of of validating we

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

and the challenging was production vehicles to started depreciation our the stock-based profit our expense. second by of first-generation $XXX inventory on delivered due amortization call, the The per expense, inventory. sequential $XX,XXX the vehicles third was of variance shortage consumer our RX, was a and impacted on part expected includes in reduced quarter. Total the goods second of We following in QX vehicle $XXX basis low disruption successful upgrade RX third deliveries sequential of plant Demand third negatively gross specific of the due XXXX the ramp the with mentioned RX which quarter compensation sale production for backdrop. to we decrease quarter gross limited to loss $XX,XXX the for As earnings and quarter. and RX availability retooling finished quarter approximately sell-down in of negative RX million,

and second-generation our in Pack we reduction long-term of are the commercial comparing versus when material cost an $X,XXX expected the vehicle RX of XX% cost QX to addition, XXXX. enable cost which platform, with per to the produced delivered combined XXXX Large incurred part in improvements being RX related tailwinds with anticipate cost not structure. The a Dual-Motor commodity approximately QX we quarter revenue of efficiency introduction our do normalized initiatives, In

as this driving is expenses. into meaningful compared RX generation. fourth efficiency to to our focused cost Importantly, on the result second-generation and in see We line to expect first operating lower continue the throughout reduction and in target, company see remain This we our a in continue cost with this quarter, quarter. material greater our third in saw we the

which of reflection place. the years, a Our level cost the had we've were and initiatives GAAP quarter X put the is lowest million, savings in in third operating $XXX expenses we've in

vehicles. are We XX,XXX production annual XX,XXX reaffirming guidance of our to

production van fourth quarter in deliveries require commercial Dual-Motor. and Tri-Motor obstacle. X is this our increase and in want to variants only believe expect to We I a as those the we emphasize short-term

annual single-digit We a are vehicles. XX,XXX reflects low to our compared which delivery as growth XXXX, to of reaffirming range XX,XXX outlook of

GAAP an key and million drivers: increase quarter remarketing, This expect modest sales have other by regulatory credit a now in services. $XXX We gross We driven first, revenue to XXXX. is in revenues, to approximately total the three is expected software service, non-vehicle of increase in a such XXXX. have as credits, of regulatory by to of unit fourth supported profit per expect

We also selling meaningful increase we QX. in sales Tri-Motor RX sales improve an as in our more mix average with the expect see to price

improvement RX our an vehicles, Secondly, costs. supplier the material the commercial raw we costs in and are material due lower as part second-generation negotiations seeing of changes to to design transition

We variable help our down per quarter EDV also of unit cost mix sales will fourth the also the expect drive increased delivered. in

in to delivered initial of improvements the vehicles, fourth to of we quarter. Lastly, the depreciation reduce our changes our cost based tooling, in per process design expect the fixed on and our manufacturing vehicle vehicle

to firm in balances and to quarter. The continue into decline to LCNRV expect the in benefit RX fourth introduced the also new We strategically purchase technology designed RX were term. commitment long

these of building to leadership we RX. to existing operations, allows faster compared RX and made team in and costs. the leverage as our path the us best to operations RX, and RX manufacturing much sourcing addition, first in benefits, overhead Normal, we've addition significant having to profitability progress a anticipate In Because logistics as

shortage to While motors. Due our the on for guidance volumes, $X.XXX on the our to to adjusted unchanged absorption associated with to XXXX cost progress billion guidance Enduro in produce is a focused cost lower component at revising EBITDA the loss annual to we term, are for billion billion. $X.XXX XXXX we $X.X loss. XXXX of our between fixed lack is RX structure make team addressing the continue impacting ability near CapEx

ahead, with venture we opportunity of excited Looking are about the Group. our significant joint Volkswagen

receiving venture fund RX the road the variance Rivian $X.X our cash formation the flow of certain of anticipate of with short-term additional joint equivalents billion the investments growth together mentioned, free for cash following build-out with Rivian's ramp and and and positive. and cash, in milestones are to capital to RJ in of As Normal we expected taking proceeds RX Georgia, map

upon turn other We line happen Q&A. are excited open the expect their savings operator thank to cost the partners, again we potential closing, I tremendous quarter. share to to benefits this back over that, support. With milestones the call wanted shareholders and suppliers the and customers, for let me for which our team, to to

line [Operator of Marco [ from Instructions] ] question [ coming Last with Emmanuel (sic) First Wolfe the [ ]. Research ]

the which economics comment mean in in How around profit in, terms maybe much you meaningful unit for fourth somewhat of amount quarter we quarter But improving RX. still the do of the about fourth how a rec on where economics? and modest credit fairly in XXXX? for unit levers and it's a for it to the profit. improvement And assume expect implications is of we about think gross I question in how you should without think would My have unprofitable. in first you please? then it is the it past gross on keep you does are other Obviously, improvements can

Sure. Thanks, Emmanuel.

we our QX that As gross drive positive profit unit. of growth in you improvement is in profitability of seeing one the to drivers anticipate as the revenue per gross noted, primary the we

selling throughout that's so we'll sales that as this in been talked course credit I driven the the million some year. improvements by that And both the achieving of of average see as well terms we in $XXX regulatory our about anticipate that prices. of

unit, per also As as well delivered revenue well. XXXX as our that we XXXX, in as into launching translate on offering we'll be a motor quad

as tailwind will overall also increase that ASP whole. be a So catalyst business about for the a we think as

the costs the piece continue another we'll into and we're So years the continue depreciation then variable yet progress commercial reduction from aggregate for process the XXXX, expenses go-forward plant in as continue and But about vehicles progress to progression. The meaningful in majority fourth down driving have we both of And is to improvements the our our initial be us from into through will we've Generation as achieved. per at fixed on that in cost as look X driver the as we've while quarter work RX our largely improvement RX in are for we particular. especially an per Clearly, overall look production X in cost reduction unit then think QX, down guidance additional standpoint see did we've commodity continued seen sourcing year as variable to now this unit. The production step to our QX our last depreciated we'll production XXXX. a cost tailwind continue ahead at well that as is unit our in on in to we per cost starter that we'll tooling We piece material have our whole. our impact production, be well. we still the is, we're dynamics within from seen efficiencies as a as this the we see a well. given operational see and look still category tailwinds next in pivot way And to improvement, cost another see to a from standpoint into

lot a That's power. of Okay. great

about based XXXX indication you would factors, follow-up some credits give expect my ] how be And gross would be to these then of profit Just on think also can all XXXX? Riv do of you positive? maybe us sort [ for you

Sure.

that for formalized in earnings Our remains for we're that operating that as QX gross additional or trying on on will say outlook provide are call year our today guidance environment, the when XXXX. target details we whole. a XXXX more to profit goal and we'll we'll positive fluid full I a a provide for

regulatory As sale the XXXX seen to future line we've visibility next it as pertains year. them into into opportunities reg a with whole? be in here we credits have do to credits, our and would for of what for expect

Our question next coming the of Jonas from Adam Stanley. line with Morgan

So you consumer environment. a challenging highlighted

are dealer quarter of Just what curious, And wanted I'd in also full you leases. you volume versus sales also Can be that. of related sales percentage a the to remind sold confirm what leased? us your of credit? any could events is residual of is out And drill tax on this given portion those are of direct exposure your to changing? not that us you remind value how And customers realize is Rivian how the week percentage inventory? what if taking pre-ordered who $X,XXX your And can

Sure, Adam.

we As think the something and team utilize residual your that program. was on maybe shares studies anticipate it's leasing a lease together Chase our levels penetration a seeing the Chase to carefully accordingly And as in part to residual the something it's Rivian market leasing. question backdrop within our of first we're we values that adjust vehicles parties -- and Overall, is of second the And as third that what achieving. our quarterly have of I'll mark we basis broader we XX% reserve as monthly whole. in partner part on values the take we that with quarter. the lease

whole. of about volumes As in the mix preorder our of had we volume a overall end from think preorders, QX, the as we pricing early

our receives don't to that a that qualify that consumers early to were given and Gen the of are of lower $X,XXX take vehicles on in benefit able whole the finance a an levels, customers sales most income utilizing of pricing really QX. And overall of in the their advantage purchase X remainder of overall see percentage and X those in price or it's customers were largely vehicles purchase. of consumers that our of then leased as they that the that our or uptick Gen the credit, point did we So credit, population as terms of a terms cash

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

COGS backed to And quarter the side. is there's that unit? revenue decompose to supplier you clean on start maybe could roughly up were Maybe recognizing I in. the get to And then benefits, what of out current COGS cost per the the way $XXX,XXX bit more on Emmanuel's you was want initiatives. just some of just material maybe But on if at and third unit, follow unit just the COGS it if specifically a question. and into a inefficiencies there that decompose look per volume cadence of how that cost the pieces on XXXX, better the your per layers

Thanks, or This something said, Dan, through with ramp Claire relationships the number spend with changed replaced up as third all on. relationships. of up And look focusing of new supplier for ended noise quarter course, and it's Gen time a either was the of our question. platform, tremendous to that quarter hard we is, -- supplier amount of X and bring a

that for supply we replaced and bill overall quarter by production we in said, interruption halt had the I some did of as vehicles the of cost. And about amount some course, time of the of produced then, lower materials XX% As impacts. the that measured

material I look and to in XX%, the going look quarter cost you costs important QX through in QX, in is note noise, this you to in XX% to our of you be be material the cost that and thing if QX. saw at lower were project So compare we to were the all in to vehicle we year, to QX what material than is that think this

fashion, lowering we're materials, So a cost how progress also into plant. driving making our terms efficiency we're structure. lowering real of we're similar meaningful of in running the our In bill

we is per build more So driving the the that unit into down. coming vehicles. quality hours We're

through is running QX. all flow there's up the hard it's the elements So smoother, the made just really of different that plant but to the see

also for a And margin to he's a so of it And progress really do talked we lot, that here. not working just I we're He's communicate months, one a this have the M&I the couple been rest along here of fact leadership on closely the and QX positive comments Javier of hard few to and about I together, see. joined team, QX to overall. With important team things now of the how want RX that just the short, makes terms said, guide making invite actually think, the we have the in continued plant, in despite margin importantly, to that with the positive out chain. on to we're both and do most call is to continuing a on progress But production the but of that's program, there. towards supply RX very the gross

powering Thank implementing big you, lean a is improving focus and value way, shop. I the RJ. if acceleration, it streams an compressing performance, it's Indeed, may currently the that call

So potential all leaders, team group unleashing of of leaders. members, our the

started results the promising are engaged see have very and visiting recently improving this We was morning, pleased very line people in performance. really I'm how and to with

the and it end-to-end Rivian teams, system, of again, cross-functional We accelerating And improving integrated for with [indiscernible] when are collaboration. The well more priorities prepare performance in view short quality, at their that principles right levels But robustifing is delivery that an the or the in working all our system, comes of big lean operating and and plant our important enhancing for the operating way implementation. as to the industrial the appropriately to RX term right times. is what's those to results. cost

helpful. Great. That's

from how stronger drive is runway there in unit per COGS to the actually Just much down. the if us operations you remind on could benefits 'XX,

Sure.

the we'll shutdown Gen is year standpoint. of benefits introduce entirety production little the of think given X the core for line from a have having had the the XXXX. of As that the is ramp over we course Gen we in to to, And the had X about XXXX relative production the to a as XXXX, that one also we up noisy and alluded into just bit RJ what

opportunity So RX, operational and now we're as within for here efficiency overall an to is coming ready XXXX. those team to drive of manufacturing and the which facility many our next really we manufacturing principles look focus core around have ahead, in in ensure lean Normal, Javier drive

We will still of of our in a month lot do XXXX, and a part have work ready for over shutdown shutdown as in be sure second we're will -- the of year of number our there, that production just half that the a to start specifically production. of of a on many paint RX of shops, cadence of the shared to make shop

could it's but waiting know collaboration we've and the remind we're of just Scout sort the to On architecture. electric could closed, where currently Maybe I -- for seen the in I of one you us more. joint stands? announcement, JV If just Volkswagen, using be squeeze the

Yes.

compelling able being we're our about support markets. looking developing of with As And really and forward a across to Volkswagen. I partnership to said, products brands excited portfolio

we've a vehicle stack. And Volkswagen demonstrator Volkswagen which is yet, within products that's that side such and of in nature the today, both brands incredibly be been stands our our and this architecture, ECU that but and technology electrical across what technology on encouraging products is software exciting our not a our announced driving Group of technology, it essentially many the deal and of the this and it's Group our Rivian will partnership As teams side. And built family. the going utilizes to our that terms to the the into deal different scale seen is in course, cadence go of

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

over fourth I will And in or I with XXX better think constraint contextualize production to help motor? can ask Rivian stands. week. better quarter where per the you units implies XXXX supply us a Enduro vehicles little that the guidance you with roughly stand where the production be currently Maybe understand XX,XXX

you, Thank for questions. Mark, your

that say are a specific record have the constraint. sense And would And trend short-term the we been now supplier, are really cross-functionally, We Really, up teams weeks to -- and have promising, a promising. normal the very that together constraint, create working weeks the time. urgency, I working in The what's we right of constrained the important ramping site. we on is that we demonstrated last new with recover last gathering that teams are working in more capacity is in have with a right see capacity. been

I think So that, that, that the really think over problem I problem very weeks. will we -- be think, that next in

My was you outlook the was regulatory it relative credits. around prior for had million Clearly, the $XXX as XXXX. upside help $XXX million now to I second closer expect for question leading the year. Maybe this view? thought us what's an understand to you said better to

Mark. Sure,

the our as areas the counterparties been is whole. needs across well team portfolio board, opportunity focus year, credit into OEMs red our on the throughout many This complex the we for deeper selling As we've the of sell state-by-state seen increase a our credit we've gone of a of to highly this and as overall core of an manages OEM course puzzle have a the to that team. in basis other of as underlying as value the the relative to credits regulatory

to team is these great a able just sale this being the so make that value demonstration the of And Rivian of of million in able has progress the to bring outcome credits. our through regulatory to $XXX been to achieve of

question Our from of with Spak next UBS. Joseph the coming line

on call, and mentioned that of talking little couple target. Claire, bit, gross profit still positive you times a about in a just this

just year. downtime again some the of later You sort mentioned in

recourse RX at something the point is the So just full like on to related gross revenue? do regulatory the that? kind that when year the vehicle, be RX? and I do we like Like you year? to positive, clear, some just do for recognize of have that think when cadence And you any question, how it of of Is for about guess say the you like X profit

Sure, Joe.

As overall, impact. have you at XXXX, out, we rightfully will look pointed we as quarterly

positive every XXXX expect we will in that profit in don't be So right. own gross quarter its

entirety. its in year the for positive be to is target Our

we the enabler by And that of year are our relative so credits that certainly in of whole, the we'll think regulatory of gross path as be have as that in lumpiness will some of an the XXXX a well impacts next as that of about driven some profit to aggregate. positive recognition

the timing we counterparties an of so government cases, is as related needs into recognition working understanding of regulatory timing many look some to we're as that we with. agencies of And the future, well. the do have of credit In out

understanding view But is our achieve credits. current the recognition of about as a for of exact that's cadence lines we'll bit up those little of overall we it. the it So some think time that

at of level, high from agency like some you an agreement the just recognize Like buy But stuff when excluding someone from recognize it you? revenue to like, it buys it maybe can't you on a you.

Right. when counterparty. an agreement. the transfer we credits It's to not It's on that

Okay.

you some of like the maybe some and just Because question, that be little second year? fourth take I Or a doesn't too? had I you past, in you quarter. mentioned The this, to but I lot you right Amazon deliveries in production Is late vans in -- advance were building thought I actions next quarter. heard in fourth van inventory, saying really say of the apologize, are thought that as I a in joined the will up

the with changed something So cadence there.

Yes.

production well I as in our prepared Tri-Motor as my fourth quarter. mentioned As increasing in the we're vans remarks, both of

require of well variants Because one as units. increasing those those production as Enduro deliveries motor. of only so And both

way that production aggregate. or us increase from the for efficiency overall the our in so maximize best standpoint, year to for And operational an was

this the would expect I do So additional would sales be Amazon we in that of fourth van there say year. quarter certainly

question Gianarikas with Canaccord of next from Our line Genuity. the coming George

previous question around what relationship, piggyback on like understood Scout Volkswagen the about and the the it want car do had relationship and electrical the I to a vehicle. we lot with From software, just looks to but RX. a with

] cooperating And be so a extent from to to be similar Rivian? to well expect engineering. regard as [ you Volkswagen And we sort will on there closely with how aesthetics lineup as what of can

of to design that range the each it's doesn't platform software. wide framework. screens The ECUs, to really underlying the mean software products to joint important brands it like, of those that's and the UI the the looks going will look, the platform, but our architecture, what the their have is link the the and is the of digital what to like that, the framework running UI vehicle screens, George. and brands, inside venture, the to Thanks, and [indiscernible] ECUs. that's and And digital electrical number vehicle that sub our decisions -- the around And on across screens, shape recognize decisions inside really looks what and encapsulates software a around but all course, of overall doesn't used electronics be products design which, going itself of vehicle the

with decisions, Group. any in regards with role Volkswagen remain of our decisions to those within design So course, brands, the

update a commercial just as when the on maybe in additional any follow-up, vehicle expect ramp And volumes? traction we could customers marketplace and to

operating they're operator. the of not not because said we've just that the as procedure the charging but often for a which of these level purchase not the cycle energy. some decision to standard level out simple Yes, of vehicles, means the sales that that on takes operating now, commercial time. it designed often power, fleets while changes for requires have sites It vehicles, the on fleet It's of is infrastructure, been the may for larger

the about super And the we're their logos electrification. different vans and towards the with had fleets place, see over team. that we've world starting to brands out year see that them of this and as of start we'll in start in XXXX, the efforts our so, that on And put is those different to different journey with more last a the beginnings focus are to seeing and said, we in for excited

Capital. of question from Tom our line the next [ Norian RBC with ] coming And

Sorry, one more the on regulatory credit.

benefit So in if $XXX alone, million imply Volumes were of QX. hits $XXX did depressed negative the I would is in million I QX million look year-to-date. at XX I gross in profit like believe the think, $XXX that, think million, that ] $XXX QX. [ Is you QX I a

back see of QX that feels million. helpful. -- bridge really sequential just the you as QX of cost be that So like It If of should the significant, in that think they're a would sequentially cost that to piece quantify coming bridge improvement a be not on QX, clear just helpful be improvement could to might is? $XXX piece benefit what be that, just between

specifics. we about ones additional preorder give through sell don't talked as core going We revenue in I start is think Tom. well, as to the we drivers the the quarter related holder previously mentioned there as pricing. underlying early But as we ended we the about Sure, beyond improvement Tri-Motors that significant be selling to in average prices

we underlying below in quarter boost the structure would we sales the that natural as more a a is embedded whole, absorption. look be we the so QX cost full guidance fourth production our think about then as fixed And level our at as think in aggregate. And about underlying in slightly mean, as I price overall cost

we're seeing a I benefits really So the in down are where mentioned, there, as depreciation. step

in LCNRV to on we'll per commitment progress levels cost We also firm variable expect then down. And coming see see our purchase basis. a continued unit

of there's RJ in as you So previously the that QX see as bit noise well, highlighted numbers. a

QX So off unit unit further per revenue and of XXXX, more fixed cost across of the we drivers into where point our seeing per each anticipate go-forward core three will per cost variable representative unit improvements. be launching progress of

RJ, Got it. that's not price the range, is RX, believe XXX-mile it And $XX,XXX variety my one the when I below. follow-up, be the the might on

demographic, beyond have in features the miles with XXX-mile wondering the -- a sub-$XX,XXX -- would perhaps be compete? under GM range. vehicle different Is Equinox to it range it that makes a be how range. XXXX, different just that with XXX-plus with that environment does battery at Just we competitive competitive seems of How $XX,XXX

with that Just out at how competitive shakes range, that love that product to price. at hear the environment

Tom, excited talking Yes. about We super Thanks, RX, question the we're RX. about for love on it.

Just that over on spec to XXX clarify, range on the the to a still for is relative level. what's But $XX,XXX RX to possible platform the variant vehicle starting miles. on correspond lower price a performance

the else miles sales is say XXX-mile, what interior some towards market. of unlocks of choice product being range. spec a of more at than be for going is overall we have the giving believe an range. the we've never on of spent excited where we of slightly a that's XXX-plus performance and But it's content customer lot price time So different lower variants. And a with a levels are spent performance top can time on lot the very, and sub-$XX,XXX unique we for I've to believe, factor, of the and a is XXX% need lot a there the to demand And And this EVs for for the electric and ultimately form a product biggest choice, in I'm than path one relative vehicle of new is as that few unique customers the back compelling RX as choice a and very around of for in important RX. brand And options in I product in we say having been as and looking attributes, lot vehicle, today.

from our And with Paribas. of [indiscernible] next question the Jakes coming BNP line

what's then first maybe such the the regulatory deliveries echo part step-up? And can order the And I On per us? reference or question, revenue would your on for you in the $XXX the just excludes unit ASP. increase fourth first remind year-over-year visibility quarter, this to ASP just credits. fourth the your the quarter, EDV Adam's the of sizable million assume compared for increase book in level weigh quarter for a increase of Is in to

what view, to year help great might well. and growth would as sequentially look could is whether you if that EDV or mention be the So like

Sure.

year would land As quarter. vans the selling unit those what QX, quarter the that increase back look by the say, closer this as in we sale being see you by XX% X% we a price, in of aggregate, year, out sort in fourth our which lower we of to revenue year -- in much as relative partially called the in increase in is QX per see the And the as in to were increase commercial on experienced third rightfully last about fourth about represented level an of over this we in did I revenue in to average just see an a whole. And of you comments think we'll offset quarter, commercial of aggregate.

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you have the then it. Got And Super anything? helpful. just ahead, for do -- go

to a on visibility book or just little I whole. was a as order going Yes. bank comment bit order

more consumers the demonstrated in vehicles. a drives Our in We we and into demo -- relative more from as our get continuing to Rivian interest standpoint more teams those push awareness increase levels. our by in that build go-to-market we're translate to a continuing of XX% And behind QX drive whole had for drive brand QX saw are wheel that orders. to and interest to up that to and have the

clarity on tranches. just the a certain going milestone with the confirmation close achievements funding missed I to be then if associated or is on I additional believe JV, apologies it associated JV, are My there VW before And effective that. with year-end? And to VW's just

the color So those what at can entail? milestones any might all of you provide context on just

the it the the we before ourselves. Volkswagen out such few has close if setting some partnership joint -- types lot played Jake, defining gone significant work end the expect will, of is into to the venture, over of that of months. part you of and certainly a that's a last and And that the KPIs, fully we're scaled for

the deal. terms milestones that worked the And financing in at associated so define with those very and team with comfortable closely portions the those, we're of we've Group really unlock certain to with of Volkswagen

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continued on relative efforts to driving most the our across we critical differentiated to our focus were able XXXX. that in about we operating this strategically significant is centers can many bring the and of second the than have ability million expenses half of As operating XXXX investments collective in so in the efforts were the first Rivian step aggregate, And first level support half will able think about we to the we invest cash being the rollout we lower think talked underlying the down lower about year. that the of which we of we strategy. to reductions half members a as $XXX continuing of we've areas in technology have the in in cash the from service be We've to about of where our for go-to-market to to what as team expenses, about think and efficiency, unlock that which business is seen many as our spaces our QX, company

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

Perfect.

relationship. and at been, and you amount a regarding going media know, get closures on guess, the looking or been had But clarity head know, Volkswagen may plant fair potentially words ahead? count impacted some whether maybe in any mouth. just it of on impacted. the impact in a may don't the restructuring Volkswagen. to, any has things I wanted on this intrigue put question teams of with There's I So ways you've I I reductions, could And don't the I there their working be not that way? you obviously in you obviously, Or that can't are

of Alex, them designed nature thanks for technology. way advanced a really deploy The question. the been relationship with what provides efficient for the partnership we're building our to that's Volkswagen and

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and and So deal is, partnership Rivian, this it core this happened. going business to the drive as is why to just into ultimately, this reason structural within is advantages a is cost I this has this think, as

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say, So or non-zero. stream the to costs are data WiFi let's to, music a have hotspot

that the it also additional or and pay upfront the not prefer about be both whether captured the that ultimately, of the package closely, bundled And others brings this so features. And in variablized over the think price is more meaning our a capabilities ways. provides you'll appropriately to we charge in but going the different particular, just customers covers way sort autonomous upfront that basis. at of they'll can as to us tell with us this captured looked internally that. price it industry for to for customers all growth like we've at them we've models pay some model very we're in of least be providing thinking early to whether prefer it's existence capturing in to us pay vehicle, rather things it where a the to it difference, and pay on for at the an would And in in reflects cost time. And it's but look new with along that say get likely have to some And what connectivity, of some that new of going to it context for features, terms too platform for the of watching how I to in are and that

the Shlisky of D.A. from And our next Mike with Davidson. line question coming

in you're on fourth maybe guess, fewer I are kind better had Has options they basis, quarter. assumptions I'm heard seeing that at just -- But mentioned, I've have demand higher when of some consumer new challenges like-for-like look the orders, impact earlier about challenges these people been making cheaper at the trying all? you curious the are might to some mentioned prices, price having. variants or of on trended with a that higher if you the features. given that's of

to recognize different because a that, we've broad important spectrum It's three of configurations. there's And of launched powertrain really now customers.

pack be we'll Tri-Motor, a launching a XXXX, couple Motor. our in to the Quad And of different updates have sizes. we battery and then a we Dual-Motor, have So

willing and pay large of standard miles a to of demand have want effectively, curve what our others more populate some -- sensitive. have and to Max Pack. And they are and XXX seconds, X the customers where X.X they're XX, best can the that's buy, be price us get going to to We to call thing we trying possibly the range

Claire of what of margin the positive just point excitement I for from we're that are you accurately referring the to this. how we it, it's see predict level quickly things us view. But a to in try think and the things now our of have this, demand And that, a but are what for hard vehicle Tri-Motor the excitement these imagine, Quad. put hard to see level high. to these -- customers to variant and can excited acting are And is customer predict. our model and it to is about seeing is a market we're try the try very course, we for for how there of the for And is and quickly when moment, disappears shop, that into

X.X first-gen mean Quad level. or is on any looking into than mile imaginable an go smooth and as it vehicle really, a off-road whole this XXXX, refined. just less vehicle everyday and Quad is it's incredibly It's Motor thinking exceptional. our And can -- that driver. It you use in I so It's can quarter great, was next-generation seconds. can do It's the into another the almost environment, a but

to close mode of miles conserved range. getting in While XXX

healthy of and So just it's to of unique And such priced as it drive a be attributes. course, very the business. a therefore, combination will margin

allow topology So -- trim reason of the types. combination these is battery motor have we this to this customer multiple and different combinations to are us different into sell

back to showing remarks. will turn over further closing for I'm RJ now any no questions. call I Scaringe the

Thanks, everybody, on the today. us call for joining

and associated of some and challenging are with me incredibly lies and X a the internally thinking around into opening The the RX is the I As every I some just ramping the in available both you into Gen had contagious supply excited we Gen but but RX. excitement from I'm ahead, around preparing and was the this XXXX. heard complexities remarks. customers, think and around also externally, nuanced launch and not but QX, of X our vehicle production our product teams into in it, that about wish transitioning with time what myself, the program, is developing interruptions with XXXX for just say quarter very we importantly, are internally. And But with to This today.

us and a of with a RX significant partner me embodying continuing volume how us call next we're lower Javier and along that vehicle we're around for to as ourselves and we fully to So Rivian that excited but are doing get can considerably a with focus program. And cost to everything really that, about cost is with that, market, this to in is it's also with on been to on stage the really such time, preparing build both for have Javier growth to targets, program the we produce He's on maintaining exciting which its join today. that for our vehicles. ramp-up great focus said, significant

thanks, to everyone, and look call our forward So with next one. that, for joining the

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

You disconnect. may now