Q3 2024 earnings released. Sales & positive gross profit reiterated for Q4 2024

[SANZC02]

Q3 2024 Share holder letter released It can be found here

Edit: quick takeaways

Still on track for positive gross profit Q4 2024

85% of R2 Bill of Materials sourced to date

Most of the people subscribed to connect+ after trial.

Amazon increased Q4 orders and selling tri-motors to mitigate supply issues for motors as these vehicles only require 1 Enduro motor per build.

Projected with the VW deal and on hand cash to have enough cash to get through R2 Launch in Normal and midsize platform in Georgia.

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[Dark-Fx]

85% of R2 Bill of Materials sourced to date

"We anticipate the material cost of an R2 AWD Large vehicle to be 45% lower than a second generation R1 Dual Large vehicle."

Should help the doubters here about Rivian's potential profitability once R2 starts shipping.

who am I kidding, those people are helpless.

 

[Donald Stanfield]

They are reaffirming their sales and gross profit for the 4th quarter. Letter makes me feel better, expenses have all gone down, and it shows they are on a path to viability.

 

[RivianRiverRat]

"We anticipate the material cost of an R2 AWD Large vehicle to be 45% lower than a second generation R1 Dual Large vehicle."

Should help the doubters here about Rivian's potential profitability once R2 starts shipping.

who am I kidding, those people are helpless.

so you're saying there's a chance
don't know material cost and markup but retail prices
R1S Dual Large = $82900
so
R2 AWD Large = $45595

 

[Hereforthesnacks]

"We anticipate the material cost of an R2 AWD Large vehicle to be 45% lower than a second generation R1 Dual Large vehicle."

Should help the doubters here about Rivian's potential profitability once R2 starts shipping.

who am I kidding, those people are helpless.

So they would have to sell R2 at $50k+ to maintain same profit as R1?

 

[Hereforthesnacks]

so you're saying there's a chance
don't know material cost and markup but retail prices
R1S Dual Large = $82900
so
R2 AWD Large = $45595

A little scary since they aren’t making a ton on the R1s? Will need massive volume. Better get ops in line.

 

[RivianRiverRat]

A little scary since they aren’t making a ton on the R1s? Will need massive volume. Better get ops in line.

that was also the lowest price R1S (dual large) with no add-on options so I bet it will start climbing from there
but at least it is in line with what was said at the intro event

 

[Mellowyellow]

They're still losing $40k/truck...

 

[SANZC02]

Amazon increased Q4 orders and selling tri-motors to mitigate supply issues for motors as these vehicles only require 1 large motor per build.

Projected with the VW deal and on hand cash to have enough cash to get through R2 Launch in Normal and midsize platform in Georgia.

 

[DuoRivians]

"We anticipate the material cost of an R2 AWD Large vehicle to be 45% lower than a second generation R1 Dual Large vehicle."

Should help the doubters here about Rivian's potential profitability once R2 starts shipping.

who am I kidding, those people are helpless.

This is key, along with +GM affirmation

 

[SANZC02]

so you're saying there's a chance
don't know material cost and markup but retail prices
R1S Dual Large = $82900
so
R2 AWD Large = $45595

That 45% is only material costs. You still have build hours as they are refining the assembly steps and the fixed cost savings from anticipated higher volume.

This is all positive news in my opinion.

 

[Honey]

Glad i loaded up some more stock yesterday ?

 

[gultin]

approx. $300M per year in regulatory credits in 2024, and similar number expected for 2025.

 

[DuoRivian]

so you're saying there's a chance
don't know material cost and markup but retail prices
R1S Dual Large = $82900
so
R2 AWD Large = $45595

The base R2 is RWD and I would expect AWD to be $50k.
If you assume material costs were $50k for an R1 then 45% less is over $20k less along with easier to build (less labor) and less complicated (lower warranty reserve cost) means $45k is achievable and profitable.

 

[1T2022]

I feel that R2 sale price will be above $55k to make a little $$$$. Don't price it too low, it should be above Model Y.

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