2022 Q1 Earnings Report & Shareholder Letter

[Eticket99]

Anyone wonder if the R1Ts built but not delivered are starting to accumulate due to QC issues? Seeing more deliveries here but more issues are coming to light with fit/finish (all to be expected as things scale).

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[SANZC02]

Anyone wonder if the R1Ts built but not delivered are starting to accumulate due to QC issues? Seeing more deliveries here but more issues are coming to light with fit/finish (all to be expected as things scale).

Based on the earnings report today all of the ones they say are built are ready to ship. They are not counting ones on the line or in QC/rework.

 

[Scoiatael]

Anyone wonder if the R1Ts built but not delivered are starting to accumulate due to QC issues? Seeing more deliveries here but more issues are coming to light with fit/finish (all to be expected as things scale).

Could be QC issues, but might just be Rivian is having issues with shipping. Even Ford looks like it is producing way more Lightnings than it can possibly ship right now.

 

[Craigins]

Anyone wonder if the R1Ts built but not delivered are starting to accumulate due to QC issues? Seeing more deliveries here but more issues are coming to light with fit/finish (all to be expected as things scale).

My guess is 2 part:

1) they are limited on their SC delivery capability. Each site can only handle so many trucks, and each site can only deliver so many trucks over a given time period.

2) they are expecting an X% service center need for new vehicles, thus they are slowly distributing to not overwork service centers. Looks bad if they deliver all the trucks and each minor service center visit takes 3 weeks.

 

[lefkonj]

with personal at home deliveries it takes more time. With a service center pickup or dealership you could deliver 50 vehicles a day to customers from one location. Wonder how many the NY service center can coordinate in a day? Maybe 5-7

 

[RoadRunner]

I'm pretty sure RJ stated on the call that a vehicle is not counted as "Produced" until all QC issues have been resolved and it is ready for delivery. Which would mean that the difference is vehicles in transit and waiting for delivery - and there are some additional number of vehicles that are nearly complete but are either waiting for parts or QC resolution, on top of the number they state as "Produced".

 

[Eticket99]

How confident do they seem on that 25k vehicle delivery for this year? Based on the math it's going to be difficult.... And the issues with current delivery of trucks, logistics isn't magically going away in the next 6-8 months. Strange they highlighted that guidance so confidently.

 

[Cosmacelf]

with perusal at home deliveries it takes more time. With a service center pickup or dealership you could deliver 50 vehicles a day to customers from one location. Wonder how many the NY service center can coordinate in a day? Maybe 5-7

Yes, this. Rivian will have to switch to a delivery center model at some point since the drive to home isn’t scalable. Also, most of their Q1 manufacturing was last 2 weeks of March, so not enough time to deliver. And they are a startup, so not surprised their outbound logistics aren’t up to snuff yet.

 

[EVTrucking]

No upside, could have been worse.

No Parts = No R1s

 

[Cosmacelf]

How confident do they seem on that 25k vehicle delivery for this year? Based on the math it's going to be difficult.... And the issues with current delivery of trucks, logistics isn't magically going away in the next 6-8 months. Strange they highlighted that guidance so confidently.

Yeah, they’ll have to execute really well in the last two quarters this year. RJ did say that they see light at the end of the tunnel wrt parts shortages. And they’ve run their manufacturing line at burst mode at much higher volume, so those two things together seems to give them confidence.

BUT just because you can run a line at high speed for three days doesn’t mean you can do it for a month. And supply chain issues is truly an unknown at this point.

 

[SANZC02]

Yeah, they’ll have to execute really well in the last two quarters this year. RJ did say that they see light at the end of the tunnel wrt parts shortages. And they’ve run their manufacturing line at burst mode at much higher volume, so those two things together seems to give them confidence.

BUT just because you can run a line at high speed for three days doesn’t mean you can do it for a month. And supply chain issues is truly an unknown at this point.

They also plan on adding a second shift this summer so as long as they get the parts the lines will run longer each day.

 

[EVTrucking]

They also plan on adding a second shift this summer so as long as they get the parts the lines will run longer each day.

Seems odd to add another shift if the line goes idle waiting for parts. I would think they have a fair number of folks doing nothing for extended periods of time and that will continue into 2023. Rivian is certainly not expecting the parts supply issues to resolve this year.

 

[Sgt Beavis]

My guess is 2 part:

1) they are limited on their SC delivery capability. Each site can only handle so many trucks, and each site can only deliver so many trucks over a given time period.

2) they are expecting an X% service center need for new vehicles, thus they are slowly distributing to not overwork service centers. Looks bad if they deliver all the trucks and each minor service center visit takes 3 weeks.

Dear Rivian,

I hear you. I know your pain. I’m willing to do my part. I’ll happily drop by the Denver service center and pick up my new R1T. Just give me a call, we’ll work something out.

 

[fbitz777]

Dear Rivian,

I hear you. I know your pain. I’m willing to do my part. I’ll happily drop by the Denver service center and pick up my new R1T. Just give me a call, we’ll work something out.

I'll be happy to pick mine in Normal if that gets my truck quicker.

 

[crashmtb]

Seems odd to add another shift if the line goes idle waiting for parts. I would think they have a fair number of folks doing nothing for extended periods of time and that will continue into 2023. Rivian is certainly not expecting the parts supply issues to resolve this year.

There’s always time for rework! . And cleaning/line maintenance.

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