Rivian CEO Talks Demand, Rivian R2, Loss Per Vehicle, Cybertruck (CNBC 10/4/23)

[Electric Rivilution]

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[Tenn]

fairly straight forward and honest - no reason not to take him right at his word. It looks like they may be looking for an cash infusion in the next 12-18 months though for the R2 ramp if I’m reading between the lines correctly.

 

[Donald Stanfield]

He's learning. His answers were evasive enough and positive and based on what he wanted to talk about. Someone has taught him how to speak with media and it's showing. He's starting to look like a real leader and I like to see that. It should give you confidence in the brand that they are moving in the right direction.

Like the money question, he said Rivian has maintained a strong balance sheet and will continue to do so and they will evaluate options when needed to maintain strong growth. So he didn't say they would need to dilute shares or raise money, and he didn't say that they would not need to. He kept the door open and didn't give the street any reason to dog his stock price. No ammo to the short sellers which shows someone is teaching him how that works.

 

[Sgt Beavis]

With the dual motor R1S/R1T coming online, those margins will continue to quickly improve. Also, I'm pretty sure Rivian is a good way through the pre-price hike orders. Vehicles selling at the current price are going to make some massive headway on those margins.

 

[DuoRivians]

He's learning. His answers were evasive enough and positive and based on what he wanted to talk about. Someone has taught him how to speak with media and it's showing. He's starting to look like a real leader and I like to see that. It should give you confidence in the brand that they are moving in the right direction.

Like the money question, he said Rivian has maintained a strong balance sheet and will continue to do so and they will evaluate options when needed to maintain strong growth. So he didn't say they would need to dilute shares or raise money, and he didn't say that they would not need to. He kept the door open and didn't give the street any reason to dog his stock price. No ammo to the short sellers which shows someone is teaching him how that works.

I think he’s learning to sandbag numbers and beat overwhelmingly, haha

 

[Trandall]

Ever since the 2nd plant was announced I've been of the opinion they will go out for more funding. I'm not sure if the situation will necessitate it or not or how the market will react but I think it's fine and not a bad strategy to maintain a strong balance sheet to ensure confidence. I'm predicting sale of more shares in 2024 or possibly 2025.

 

[Trandall]

With the dual motor R1S/R1T coming online, those margins will continue to quickly improve. Also, I'm pretty sure Rivian is a good way through the pre-price hike orders. Vehicles selling at the current price are going to make some massive headway on those margins.

I'm not sure how they are writing down warranty costs per vehicle but they will need to also greatly improve in this metric.

 

[DuoRivians]

Ever since the 2nd plant was announced I've been of the opinion they will go out for more funding. I'm not sure if the situation will necessitate it or not or how the market will react but I think it's fine and not a bad strategy to maintain a strong balance sheet to ensure confidence. I'm predicting sale of more shares in 2024 or possibly 2025.

Rivian will most likely raise more money in 2024 H2, imo.

But if they do it from a position of strength, eg proven gross margin positive R1 business, the street will reward them with higher share price, because people will want to invest in demonstrable growth.

 

[jjswan33]

Rivian will most likely raise more money in 2024 H2, imo.

But if they do it from a position of strength, eg proven gross margin positive R1 business, the street will reward them with higher share price, because people will want to invest in demonstrable growth.

I think that is the right move. They should have released an R2 concept by then too, I think this will help the investment case and generate excitement for what they have planned.

 

[WorldComposting]

I'm not sure how they are writing down warranty costs per vehicle but they will need to also greatly improve in this metric.

Don't the dual motor vehicles have shorter warranties compared to the quad.

 

[Sgt Beavis]

I'm not sure how they are writing down warranty costs per vehicle but they will need to also greatly improve in this metric.

I have no idea how much their warranty costs are. It wasn't in the last quarters report.

 

[moosetags]

That all sounded good and reasonable to me. I appreciate that he mentioned the expansion of service as a point of direction.

Brian

 

[Florida Panhandler]

I’m pretty sure as well that much more hype from the company about the Georgia plant will start late next year, the upcoming R2 prototype reveal and with it the notice to Wall Street they are going to issue a bond for $4-$5 Billion or so.

 

[Sully151]

What I have not heard is how the R1’s are actually selling beyond pre-orders.

 

[Oldsmobile_Mike]

Look at the reporter trying to lead/steer him with negative questions... ?

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