2021 Q3 Rivian Shareholder Letter – December 16, 2021. 71K Preorders Received

[Guy]

Not a typo.

You can go back and listen for yourself. Its the follow up question part from Adam Jonas at 26:25 into the earnings call during Q&A.

Again, RJ says the. plan is to deliver the preorders by 2023 (end of 2022) and new preorders now would go into 2023.

I think he misspoke about future orders. They will be 2024. This is still good in terms of 16000 additional orders and still planned for 2023.

The call was good and some interesting information such as battery packs not being a key constraint in the future. Extra inventory etc.

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[Monkey]

I'm a pretty early LE R1T reservation, and I'm less than 10 mins from the service center. I've not received an invite yet. Hopefully soon!

My friend, lives in Boulder, is still on track for January delivery. Has never heard of any test drive anything here and he's asked.

I'm betting they're referring to the Breckenridge media drive that originated at DIA.

 

[Dbeglor]

Not a typo.

You can go back and listen for yourself. Its the follow up question part from Adam Jonas at 26:25 into the earnings call during Q&A.

Again, RJ says the. plan is to deliver the preorders by 2023 (end of 2022) and new preorders now would go into 2023.

That's not correct, I listened the first time and just re-listened. The question referred to the S1 which said that current preorder backlog would be fulfilled by "end of fiscal 2023" and asked him if he would still reiterate that guidance, which he did. RJ misspoke and said by 2023 but he meant end of 2023.

 

[BradSomrak]

That's not correct, I listened the first time and just re-listened. The question referred to the S1 which said that current preorder backlog would be fulfilled by "end of fiscal 2023" and asked him if he would still reiterate that guidance, which he did. RJ misspoke and said by 2023 but he meant end of 2023.

This is what I heard, too.

 

[R1S Maineiac]

I expected more. Between this number and the hiccups in production already, I’m curious how negatively the market with react.

so my horribly inefficient napkin math has me guesstimating my delivery for around this time next year....unless I hold out for the Max Pack

 

[kommonplace]

Definitely tempers my expectations for the estimate I'll receive by the end of this year. I can't imagine there's any scenario where I get my R1S in 2022. (June 2021 preorder—look, hopes were slim but now they are pretty much non-existent.)

 

[SANZC02]

Amazed no one beat me to posting this:

https://assets.rivian.com/2md5qhoea...6fc93cb/Rivian-Q3-2021-Shareholder-Letter.pdf

Highlights:

"As of December 15, 2021, we have produced 652 R1 vehicles and delivered 386 of those, including the production and sale of our first two R1S vehicles earlier this week." - Page 6​

​

"We expect to be a few hundred vehicles short of our 2021 production target of 1,200, however, we are encouraged by the progress and learnings our team continues to incorporate into our operations." - Page 6​

​

"Since launching our mobile drives, we have hosted drives in New York Metro, Seattle, and Denver." Page 11 (Wait, Denver??? I'm not early enough to have expected an invite yet, but amazed we haven't heard of anyone yet)​

That 1.2 billion has a onetime charge of 458 million so actual quarterly loss was ~760 million.

Interesting that they still had 5 billion in cash at the end of the quarter and after the IPO they have 19 billion on hand.

The new preorders are good, plenty of cash to work their plans, have all three products approved for sales. After hours they are down about 9% but the report was actually better than I expected. Would not surprise me to see the stock fully recover in the morning. I see much more positive news in there than negative.

 

[virgnia_rivian]

I agree that the news wasn’t really negative. Much of it is what was expected. But from an investor standpoint, I think more transparency on ramp up would have helped. Even if they said the ramp up will be slow through spring. It would give investors a longer term view.

I also think some of the after market dip is short term investors bailing. Which I think will be a positive. Stock will likely recover some tomorrow as many buy the dip. If you look at the long term, there’s a lot to like about the stock.

edit.. and bottom line we’ll all have to continue to be patient.

 

[EVTrucking]

IMO the news was negative, not unexpected and not something to panic about.

I was hoping that they had hit their S-1 target and even slightly exceeded. I am a bit concerned about so many undelivered vehicles.

My expectation for the delivery date estimates due this month was hopeful but now I am thinking my estimated delivery for my R1T (3/21/21) of mid to late 2023 is overly optimistic.

Building and starting up a new plant in 2022 is a concern. IMO Rivian is spreading itself too thin at a critical point in time.

The number of pre orders is at a point where folks will be waiting for 2-3 years. Ford has the capability of ramping much faster and I think Rivian could lose pre orders.

 

[Whmorken]

https://rivian.com/investors/events

Thanks for posting the 3rd quarter event! Good listen.

 

[Cbarwick]

I'm doing my test drive tomorrow ... excited. Except ... just got this email. That sucks.

 

[Whmorken]

I missed the demographics answer, did he say 90% are first time truck buyers? That would make sense, but wasn't sure if I heard it right.

Yes, he said that. Hard to believe. Amazing!

 

[Cbarwick]

I take it back ... that is great service. Didn't take long to get another invite, but they are picking me up at my house EXCITED !!!

 

[Zoidz]

Yikes. They just said they're reevaluating the pricing of their vehicles given the inflationary environment. The bad news keeps rolling in.

That's not a surprise - every single business from the corner sandwich shop to Apple are, or should be, reevaluating their pricing structure due to inflation. I would be more concerned if they were not.

 

[Zoidz]

Not well. Down 8% in after-market trading...

Tesla was down 5%, and all EV manufacturers were down.

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