Rivian Q2 earnings - released with pre and post thoughts.

[JediKnight]

in the Shareholder Letter, they did mention the possibility of adding a second shift for vehicle assembly towards the end of Q3.

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[kurtlikevonnegut]

In listening to the call, RJ could be a politician. He gives long, drawn-out, and rehearsed explanations in responses to questions with zero substance or answers. More transparency would be appreciated and admired.

A CEO isn't going to say anything that's going to move the needle in the + direction on a shareholders call, but very well could slip up and say something that will move it on the - side and/or result in an investigation when speaking extemporaneously. As a shareholder I would prefer he keep doing what he's doing.

 

[BigE]

in the Shareholder Letter, they did mention the possibility of adding a second shift for vehicle assembly towards the end of Q3.

In listening to the call, RJ stated they have already started training workers for the 2nd shift and that they will start to ramp the 2nd shift near the end of Q3. He also stated they will have a ramp-up time for this new shift of workers, but it will be faster than the initial line took to train and get up to speed (paraphrasing). He would not comment on how much production this would add and also avoided commenting on a question asking what was production rate on the final week of the 2nd quarter which would have been nice to hear. Overall, they have 17,000 more vehicles to produce in the 2nd half vs 8,000 in the first half. He did also mention that Amazon as a customer, based on their business would love to have more of the Van's in time for Christmas deliveries as this is Amazon's busy time of year. All in all, it sounds like Team Rivian is hitting their marks and on a solid trajectory.

 

[bael]

I have to imagine each truck, at the reduced cost, isn't doing much to their bottom line right now,

I believe it was Claire on the call who specifically mentioned the price improvement getting past pre March 1 orders

 

[pc500]

Nothing useful or beyond what is already included in the shareholder letter (that I recall).

Which within itself, was very light this go around.

 

[pc500]

A CEO isn't going to say anything that's going to move the needle in the + direction on a shareholders call, but very well could slip up and say something that will move it on the - side and/or result in an investigation when speaking extemporaneously. As a shareholder I would prefer he keep doing what he's doing.

In past public companies, I had to memorize scripts, FAQs, do "training" and "sample public speaking/interviews" with legal/IR before I was "Certified" to speak when analysts may be present.

 

[nc10]

Overall, they have 17,000 more vehicles to produce in the 2nd half vs 8,000 in the first half.

"Sort of" minor correction, 8,000 produced Q4 2021 through Q2 2022. 7,000 if you only include Q1 and Q2 2022. So 18K to go, less whatever they made in July, disappointed to not hear about July production.... Sorry, for nitpicking....

Quarter	EV's Produced by quarter
Q3 2021	12​
Q4 2021	1003​
Q1 2022	2553​
Q2 2022	4401​

		Cumulative Produced
10/1/2021​		12​
1/1/2022​		1015​
4/1/2022​		3568​
5/9/2022​		5000​	(from Q1 earnings release)
7/1/2022​		7969​

 

[BigE]

"Sort of" minor correction, 8,000 produced Q4 2021 through Q2 2022. 7,000 if you only include Q1 and Q2 2022. So 18K to go, less whatever they made in July, disappointed to not hear about July production.... Sorry, for nitpicking....

Quarter	EV's Produced by quarter
Q3 2021	12​
Q4 2021	1003​
Q1 2022	2553​
Q2 2022	4401​

		Cumulative Produced
10/1/2021​		12​
1/1/2022​		1015​
4/1/2022​		3568​
5/9/2022​		5000​	(from Q1 earnings release)
7/1/2022​		7969​

No problem…I just went off Rivian’s numbers on the Shareholders Lettter which is rounded off.

 

[nc10]

Did anyone listen to the webcast and was there anything useful?

Some notes I made.

I was disappointed they didn't really give us any feel for how July went. I did learn the the new EV incentives for commercial vehicles had less restritive requirements in terms of where the parts are made. They said the incentive on a 14k lb EV commercial vehicle could be $40k, and easier to achieve vs passenger/consumer EV's now. Mentioned the RDV 900 as a fit for this. RJ thinks this will really help drive commercial adoption.

Said the RDV 500 was more narrow than the EDV 700 being launched now. (didn't mention height or length)

The R2 plans included US production of parts, will better fit with IRA incentives.

New orders include a lot of high end trims, average price $93K. RJ mentioned a few times, he thought he had more pricing power, good feedback on features on vehicles delivered and in reviews, sees high price orders so expect Rivian can price higher.

The EDV's with enduro motors will have a single motor. RJ said he had been driving a 2 motor R1 vehicle a lot, said he was really pleased with performance. ( I think I hear a price increase coming)

A big part of higher costs has been freight and expediting costs.

Switch to rail transport for vehicles will mean a bigger gap between production and delivery.

Raw material inputs 115% higher than start of year, I think he was mostly referring to battery chemicals, and Lithium

 

[Mister Person]

8000 orders added in the last 3 months. I'm surprised and sort of expected more. Any idea how that compares to the previous 3 months? I also wonder if they mean 13000 minus 4000 delivered (or something).

 

[Jac]

8000 orders added in the last 3 months. I'm surprised and sort of expected more. Any idea how that compares to the previous 3 months? I also wonder if they mean 13000 minus 4000 delivered (or something).

The increase of 8000 preorders in the quarter is net of delivered trucks and preorder cancellations in the period.

 

[nc10]

Also I believe they recently posted 10K production of R1s

I've not seen a press release or interview report officially noting this. I'm a little skeptical of indications Rivian reached 10K R1's by the end of July. At the end of June it was <7K (including 2021). I've mentioned elsewhere here, have been shown VIN's reported above 10k, and other indications on social media, but sure seems to me if they made > 3000 R1's in July, along with a significant number of EDV's, they would have announced in some official mode. 3000+ in one month would provide some real confidence to investors.

 

[nc10]

The increase of 8000 preorders in the quarter is net of delivered trucks and preorder cancellations in the period.

To quote the 10-Q document: The term “preorder” refers to all configured preorders prior to May 25, 2022 and all reservations made on and following May 25, 2022, net of delivered vehicles and cancelled orders.

Not really of consequence, but I wonder if there are some non configured but non cancelled early pre orders not counted?

 

[EVTrucking]

Actually, adding 8k pre orders in the last 3 months is remarkable given the extremely long lead times, higher price, higher interest rates, inflation and large selection of EVs.

Those of us with R1Ts, purchased at the lower price should feel extremely fortunate.

 

[Autolycus]

To quote the 10-Q document: The term “preorder” refers to all configured preorders prior to May 25, 2022 and all reservations made on and following May 25, 2022, net of delivered vehicles and cancelled orders.

Not really of consequence, but I wonder if there are some non configured but non cancelled early pre orders not counted?

They’re just making a distinction between the old system when you selected some configuration when making a reservation vs. the new system that doesn’t allow you to do that. New reservations are just R1T or R1S.

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