Rivian Reports 2022 Q3 Earnings. R2 Vehicle Platform Launching in 2026

[chopsui]

The results were announced this morning

https://assets.rivian.com/2md5qhoea...fb002b6/Rivian_Q3-2022_Shareholder-Letter.pdf

Sponsored

 

[johstacy]

I don't see this as a bad outcome they are reaffirming several key projections including number of vehicles they are going to produce. Yes they are taking losses but they are expected losses and within tolerances. If we can get control of inflation and ramp the supply chain I would expect Rivian to be making money hand over fist by 2024.... see below

" Our core focus remains on ramping production. The demonstrated production rates within our Normal Factory continue to give us confidence in our systems, equipment, and team members’ ability to ramp our production lines. However, we believe that supply chain constraints will continue to be the limiting factor of our production. Based on our latest understanding of the supply chain environment, we are reaffirming our 2022 production guidance of 25,000 total units produced. We are also reaffirming the annual guidance provided during our second quarter earnings call of $(5,450) million in Adjusted EBITDA. We are lowering our Capital Expenditure guidance to $1,750 million due to our streamlined product roadmap and the shift of certain capital expenditures to 2023. We continue to work with the state of Georgia and the Joint Development Authority and expect our R2 platform will launch in 2026. We expect the R2 platform will unlock a global market opportunity for Rivian and are excited about the early development work that is underway. We remain confident in our ability to fund operations with cash on hand through 2025, excluding the impact of the investment in the currently contemplated joint venture with Mercedes-Benz. "

 

[bd5400]

Net preorders remain strong, which is a good sign. Up to 114k now, despite ongoing increases in deliveries

 

[DJG]

I don't see this as a bad outcome they are reaffirming several key projections including number of vehicles they are going to produce. Yes they are taking losses but they are expected losses and within tolerances. If we can get control of inflation and ramp the supply chain I would expect Rivian to be making money hand over fist by 2024.... see below

They won't be making a profit until they ramp up the GA facility, which doesn't start until 2026. All of the investor scrutiny is whether they can make it until then with the cash on hand or if they will need to raise more.

 

[bd5400]

They won't be making a profit until they ramp up the GA facility, which doesn't start until 2026. All of the investor scrutiny is whether they can make it until then with the cash on hand or if they will need to raise more.

Seems like there could be a bit of a gap, considering cash on hand is through 2025 but R2 isn’t launching until 2026.

 

[MountainBikeDude]

Can't wait for no max pack questions during the call

 

[DJG]

Seems like there could be a bit of a gap, considering cash on hand is through 2025 but R2 isn’t launching until 2026.

2026 was just pushed from 2025 I believe...But the goal is to get to R2 ramp, so they would continue to pull levers to ensure that and there is nothing special about 2025.

 

[bd5400]

Net preorders remain strong, which is a good sign. Up to 114k now, despite ongoing increases in deliveries

Apparently this will be the last net preorder number they give. Future earnings will not include the number, allegedly because it will be less important going forward.

 

[MountainBikeDude]

No more preorder tally going forward... that kinda sucks for us as "enthusiasts" and investors. It's a great way to gauge popularity

 

[itselectric]

Interesting they are choosing to not include pre-orders. My guess is that they expect a lot of cancelations if the economy weakens in 2023 and they are getting ahead of that.

(This isn't a prediction of bankruptcy, just that next year, everyone might be feeling the pain a bit more and Rivian will need to buckle down until it subsides).

 

[MountainBikeDude]

Interesting they are choosing to not include pre-orders. My guess is that they expect a lot of cancelations if the economy weakens in 2023 and they are getting ahead of that.

Very good point.

 

[Redline]

Interesting they are choosing to not include pre-orders. My guess is that they expect a lot of cancelations if the economy weakens in 2023 and they are getting ahead of that.

Very possible

 

[Forager]

Interesting they are choosing to not include pre-orders. My guess is that they expect a lot of cancelations if the economy weakens in 2023 and they are getting ahead of that.

My thoughts as well. They’ve probably seen momentum of reservations slow through the quarter as the economy has turned.

 

[johstacy]

Interesting they are choosing to not include pre-orders. My guess is that they expect a lot of cancelations if the economy weakens in 2023 and they are getting ahead of that.

Lets hope the economy makes a turn in 2023... but I have to be honest it's not looking good if we keep going in the direction we are

 

[Redline]

Lets hope the economy makes a turn in 2023... but I have to be honest it's not looking good if we keep going in the direction we are

Even if we get a soft landing, until we get interest rates down, I could see issues.

Sponsored