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https://www.cnbc.com/2023/05/09/rivian-rivn-earnings-q1-2023.html

KEY POINTS
  • Electric vehicle maker Rivian Automotive on Tuesday reported a first-quarter loss that was narrower than expected.
  • It said it’s still on track to meet a 50,000-vehicle production target for 2023.
  • Rivian has been working to reduce its spending over the last several months in a bid to conserve cash.
Electric vehicle maker Rivian Automotive on Tuesday reported a first-quarter loss that was narrower than expected and said it’s still on track to meet a 50,000-vehicle production target for 2023.

Shares were up about 4% in after-hours trading following the news.

Here are the key numbers from Rivian’s first-quarter earnings report, together with consensus Wall Street expectations as reported by Refinitiv:

  • Adjusted loss per share: $1.25 versus $1.59 expected.
  • Revenue: $661 million versus $652.1 million expected.
Rivian’s net loss for the first quarter was $1.35 billion, or $1.45 per share. A year ago, the company reported a net loss of $1.59 billion, or $1.77 per share, on revenue.

On an adjusted basis, Rivian lost $1.25 per share during the period, compared with $1.43 per share in the year-ago period.

Rivian had $11.8 billion in cash remaining as of March 31, down from $12.1 billion at the end of 2022. Capital expenditures for the first quarter were $283 million, versus $418 million in the year-ago period.

Rivian has been working to reduce its spending over the last several months in a bid to conserve cash. The company said on Feb. 1 that it would cut 6% of its workforce, or about 900 employees.

“Our core priorities for 2023 are unchanged,” CEO RJ Scaringe said in an earnings release Tuesday. “The team remains focused on ramping production, driving cost reductions, developing the [upcoming smaller] R2 platform and future technologies and delivering an outstanding end-to-end customer experience.”

Rivian said on Apr. 3 that it built 9,395 EVs in the first quarter and delivered 7,946 vehicles to customers by quarter-end. Both numbers were down from the fourth quarter, a result of planned factory downtime as Rivian upgraded assembly lines to incorporate its new made-in-house “Enduro” electric motors and lower-cost lithium iron phosphate battery packs.

Chief Financial Officer Claire McDonough emphasized that the new motors and batteries are “critical to achieve our long-term target cost structure across current vehicle platforms, as well as R2.”

Rivian’s R2 platform, now in development, will underpin a series of smaller vehicles priced below the R1T pickup’s current $73,000 starting price. It’s currently expected to launch in 2026.

Rivian confirmed that it remains on track to hit its full-year production guidance of 50,000 vehicles, roughly twice the number it made in 2022, with total capital expenditures of about $2 billion for the year.

The company is currently building the R1T pickup, the R1S SUV and a series of electric delivery vans for Amazon at its factory in Normal, Illinois.
See, producing newer, more expensive models pays off.
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That's a nonsense metric.
Rivian is losing more than 2x the average selling price of each vehicle. That's not a function of COGS specifically, more overall build out and factory overhead, but COGS is estimated to be 25-35% more than the current vehicle sales price. Return on equity is poor as well.
 

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That's a nonsense metric.
Well COGS is a great metric, just in this case it is useless as you said. The important thing is the COGS is where they need it to be by the time their production is ramped up. Everyone knows they are going to lose money now and it's important for people to remember they aren't actually losing 50K on each vehicle sold. That number is factoring in ALL the money being spent to build a second factory and ramp production. So much of it is not a continuing expenditure or will be spread out over many vehicles.
 

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Rivian is losing more than 2x the average selling price of each vehicle. That's not a function of COGS specifically, more overall build out and factory overhead, but COGS is estimated to be 25-35% more than the current vehicle sales price. Return on equity is poor as well.
Where is the estimate that they are losing 35% based on current pricing? Who made that, what is it based on?
 

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Rivian is losing more than 2x the average selling price of each vehicle. That's not a function of COGS specifically, more overall build out and factory overhead, but COGS is estimated to be 25-35% more than the current vehicle sales price. Return on equity is poor as well.
Your metrics are nonsense. You choose them (every time) because you have a bias. You're not a reliable source of anything.
 

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Well COGS is a great metric, just in this case it is useless as you said. The important thing is the COGS is where they need it to be by the time their production is ramped up. Everyone knows they are going to lose money now and it's important for people to remember they aren't actually losing 50K on each vehicle sold. That number is factoring in ALL the money being spent to build a second factory and ramp production. So much of it is not a continuing expenditure or will be spread out over many vehicles.
Exactly. So it's not a metric you use to tell how well they're doing. Particularly on a day they posted better than expected numbers. You use it if you have a bias.
 

NineElectrics

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Since inception Rivian has lost about $14.5B and produced 35K vehicles, or about -$400,000 per car.
 

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Since inception Rivian has lost about $14.5B and produced 35K vehicles, or about -$400,000 per car.
This is an irrelevant metric because you are essentially devaluing the fixed assets of the company to zero and instead considering every dollar spent as COGS.
 

NineElectrics

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This is an irrelevant metric because you are essentially devaluing the fixed assets of the company to zero and instead considering every dollar spent as COGS.
No—losses do not include the value of capital assets. Every dollar spent is not a loss if it purchases something of residual value. If I spent a billion dollars on gold bars, I won’t record a billion dollar loss.

I think Tesla’s retained earnings bottomed out at -$6 to $7B. Then it opened its Chinese factory, which, along with pollution credits, saved them. I wonder how many pollution credits Rivian sells.
 
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Exactly. So it's not a metric you use to tell how well they're doing. Particularly on a day they posted better than expected numbers. You use it if you have a bias.
Since inception Rivian has lost about $14.5B and produced 35K vehicles, or about -$400,000 per car.
The bottom quote is an even better example of dishonest numbers. Shill patrol is back in force on the .50 cal FUD gun.
 

Donald Stanfield

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No—losses do not include the value of capital assets. Every dollar spent is not a loss if it purchases something of residual value. If I spent a billion dollars on gold bars, I wing record s billion dollar loss.
Then why did you include it in your "all the money Rivian spent" post?
 

NineElectrics

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Then why did you include it in your "all the money Rivian spent" post?
Huh? That’s not all the money Rivian spent. Not at all. It’s retained earnings. It spent far more. Are you familiar with that term?
 
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Donald Stanfield

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Huh? That’s not all the money Rivian spent. Not at all. It’s retained earnings. It spent far more. Are you familiar with that term?
Why don't you give us all a lesson in trading. While you're at it you can talk about the hedge fund you work for and why you keep spreading FUD.
 

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No—losses do not include the value of capital assets. Every dollar spent is not a loss if it purchases something of residual value. If I spent a billion dollars on gold bars, I won’t record a billion dollar loss.

I tink Tesla’s retained earnings peaked at -$6 to $7B.
You're ignoring reality. Rivian could just build it's current lineup and pretend it's sustainable in the long run. But that would be STUPID. Instead, they're spending money on the future, on a cheaper vehicle lineup and a factory to build tham. Which is smart.

The metrics you're stuck on are metrics from some guy on the internet pretending he has something valuable to add because he can do basic division.
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