Rivian CFO to Participate in Bank of America Global Automotive Summit Wednesday April 13th

[Longhorngirl]

https://finance.yahoo.com/news/rivian-cfo-participate-bank-america-203500776.html
IRVINE, Calif.--(BUSINESS WIRE)--On Wednesday, April 13, Rivian’s CFO, Claire McDonough, will participate in The Bank of America Securities 2022 Global Automotive Summit. At 2:05pm ET, Claire will join a fireside chat where she will be in discussion with John Murphy, Managing Director, Bank of America Global Research. A live webcast of the fireside chat is available here.
About Rivian:
Rivian exists to create products and services that help our planet transition to carbon neutral energy and transportation. Rivian designs, develops, and manufactures category-defining electric vehicles and accessories and sells them directly to customers in the consumer and commercial markets. Rivian complements its vehicles with a full suite of proprietary, value-added services that address the entire lifecycle of the vehicle and deepen its customer relationships. Learn more about the company, products, and careers at rivian.com.
Contacts
Investors: [email protected]

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[nc10]

Thanks for noting this. A few hilites
my summaries not direct quotes.

- Rivian's capacity now is about 50k/year if suppy chain not an issue, target is 65k R1's, 85k EDV's
have demonstrated by running parts of the line for a full hour - full shift at a time, do this frequently
- have given tours, test drives to suppliers to help convince them Rivian is a serious producer in for the long haul in addition to high level negotiations. Current constraints are mostly just suppliers trying to ramp up, but future constraints (soon) will involve getting more allocations from chip suppliers and convincing suppliers its a good investment of their supplier resources to ramp with Rivian
- long term margins on vehicles targeting 20%, and margins of 65% on software and services.
- R1 line and EDV separate, except some common stamping, also battery module, drive units, paint shop
- use focus groups, mentions reading reddit forums,
- they see a chance to be cash flow positive in 2024, ebitda positive "afterwards" need the software/services part to achieve. Each plant will take ~ 3 years to be mature in operation, profits
- R2 launch will be from from Georgia,
- - was asked about prioritization between R1's and EDV. Shared mfg sections (batteries, paint, drives etc) not forced any choices yet. Redesigned some stuff in van to allow access to alternative chip supplies, may make it easier to ramp both R1's and vans. About 25% overlap in parts between R1's and Vans, hasn't been a limitation yet, so not made priority choices yet, didn't get a real answer to this.
- no questions about filling orders, keeping delivery schedules. Sigh……..

 

[Longhorngirl]

Nice summary @nc10. I could tell that the Managing Director of Bank of America giving the interview was extremely impressed with the R1T. I assume he had gone on a test drive in the vehicle that Rivian brought and he encouraged everyone to go down the street and check out the truck afterwards. He also mentioned that Rivian’s strategy to ramp up production with the hiring of the Magna executive was really smart. Overall, it sounded like he had a really positive attitude about Rivian’s ability to execute their goals.

 

[lostpacket]

Maybe I'm a bit of a pessimist but that software margin makes me a bit nervous that they plan on leaning hard on their captive audience.

 

[3l3c7r1c]

Maybe I'm a bit of a pessimist but that software margin makes me a bit nervous that they plan on leaning hard on their captive audience.

Software is possibly focused on commercial usage like fleet management for their vans.

 

[nc10]

Software is possibly focused on commercial usage like fleet management for their vans.

Forgot to mention, she did say their goal was to have frequent updates to continually upgrade users experience or something like that. My impression was they were counting a lot on both consumer and van software/services revenue streams.

 

[nc10]

Maybe I'm a bit of a pessimist but that software margin makes me a bit nervous

Agreed, was thinking the same.

 

[Guy]

Good highlight overview. I am surprised by the 85k target for EDV given that they have 100000 orders over five years and an exclusive contract with Amazon. Even I Amazon increases their order 85k for at least three years if the contract period plus ramp up this year and next is way in excess of 100k (>300k ?)

 

[nc10]

Good highlight overview. I am surprised by the 85k target for EDV given that they have 100000 orders over five years and an exclusive contract with Amazon. Even I Amazon increases their order 85k for at least three years if the contract period plus ramp up this year and next is way in excess of 100k (>300k ?)

That would have been a good question to ask. Would be interesting to know when Amazon received the first EDV, since a 4 year exclusivity clock starts (or started) at that point. It does sound like Rivian can only sell "last mile delivery vehicles to Amazon in years 1-4. I was thinking Amazon only had right of first refusal to all EDV's, but appears not the case initially, only in years 5 and 6.

From the S-1
" We also have agreed under the EDV Agreement that until the fourth anniversary of when Logistics first receives EDVs (the “Initial Delivery Date”), whether or not Logistics purchases any EDVs from us, we will exclusively provide last mile delivery vehicles to Amazon, and from the fourth anniversary to the sixth anniversary of the Initial Delivery Date, Amazon will have a right of first refusal to purchase last mile delivery vehicles that we produce. "

 

[Dark-Fx]

Maybe I'm a bit of a pessimist but that software margin makes me a bit nervous that they plan on leaning hard on their captive audience.

It makes me excited. I'm more than willing to pay for a stream of continuous improvements. If it gets to a point where it's not worth paying, I can stop.

It would be nice to have everything already in the truck, but I am sure there are ideas that haven't been thought yet that will end up as features in the future.

 

[crashmtb]

Maybe I'm a bit of a pessimist but that software margin makes me a bit nervous that they plan on leaning hard on their captive audience.

“Software & connected services” replaces the dealership cash cow of fixed ops(service centre repairs & maintenance). No semi annual oil change + upsell to bring continual $$$ with an EV.

This is why franchise dealers are not so excited about EVs

 

[moosehead]

@nc10, thanks for that.

Did you get any sense that the 50K current capacity was max they have been able to achieve prorata in recent weeks, or if there was any triangulation to the mysterious and unfounded 50k unit production that some seemed to latch onto late Q4 2021?

McDonough also was saddled with reporting the massive ($2.6B) loss in Q4 during the last earnings call so it was hard to really see any of her other competencies. Did you get the feeling she was on top of it?

 

[Davethadog]

I’ll give them a buncha money if they let me tank turn in the whole foods parking lot.

 

[Craigins]

Good highlight overview. I am surprised by the 85k target for EDV given that they have 100000 orders over five years and an exclusive contract with Amazon. Even I Amazon increases their order 85k for at least three years if the contract period plus ramp up this year and next is way in excess of 100k (>300k ?)

that is the factory maximum capacity currently. 85k EDV and 65k R1 = 150k vehicles which is the Normal plant capacity, targeted to be reached by the end of 2023.

The vans are simpler to make so their rate is going to be higher.

 

[nc10]

The vans are simpler to make so their rate is going to be higher.

It is an interesting point though, that I think @Guy was making, that I hadn’t seen mentioned by analysts, etc. Amazon’s current orders would not necessitate making vans at a 85k/year rate,, and rivian is not allowed to sell vans to anyone else in years 1-4. (Unless Amazon ups the order).

Let’s hope rivian is not locked into 2018 pricing w Amazon. Surely not….

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