RJ interview on CNBC - May 8, 2024

[mung]

I don't think the 'new idea becomes Apple's product' makes sense here at all. Apple has shown they're far behind in AI (behind the likes of MS/OpenAI and Google) and now they've openly given up on Project Titan (which was their car project then became a AV project then a dead project). They have demonstrated they got nothing when it comes to vehicle production and manufacturing. Now, if they are worried about being left behind a new world where cars are the next big platform, and want a foot in the door, they could do a lot worse than teaming up with Rivian. It is a solid brand and aligns very much with their own premium branding and customer segment. Sounds a lot like back in 2018 when there would be a rumor every week that Apple will by out Tesla.

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[mkg3]

...Got the typical non-direct answers CEOs usually give but the Apple rumor answer was not "No" and there was maybe some RJ body language they make me think maybe????

In both the earnings call yesterday and this short video, when Apple is mentioned, RJ brought up Amazon being a large and early investor for Rivian. It his way of saying NO.

One of the Rivian BOD is Peter Krawiec, who is SVP of business development for Amazon. Its very important since any kind of a major tie up require BOD concurrence and why would Amazon help Apple gain insights into Rivian/Amazon customers?

Incorporating Apple Music and Apple Watch as a Key level of access is not the same as how the tie up is being characterized in the media. Already iPhone is used as a key and people stream Apple Music via BT. To include the watch and the app would mean very little.

Unless, Apple is buying out Amazon shares, and Amazon is willing to sell those shares, this is another meaningless hype by the media for clicks....

 

[1T2022]

to me it sounds like RJ was inviting/welcoming Apple to invest like Amazon to gain access to Rivian platform.

Recently Amazon acts like drifting away from Rivian.

 

[Captain JB]

If the example of Alexa compared to Apple Car Play is fair, then I say bring on Apple as Alexa is not reliable, cant be used with two different drivers (at least our R1S cant) and is a severely inferior product compared to Apple Car Play

 

[Meengr2]

Apple $$$ + Rivian $ = Good

 

[Zeusy Zeus]

Amazon has reduced the amount of EDV’s they buy from Rivian each year. Yes Rivian makes the EDV’s for them now but they are looking to partner up with as many people as they can to stay alive. Imo Amazon isn’t a good partner, someone said it best here they have ownership. Amazon can afford to lose all the money invested in Rivian because I’m sure they’ve made plenty on top of it. I wouldn’t be surprised to eventually see Amazon pull out and someone else come along. Amazon just isn’t doing what’s needed to really help Rivian be set apart from the competition. Think about the resources Amazon has and supply chains. Why couldn’t Amazon help Rivian with more than just buying out vehicles at a ridiculously low cost to them? I see that as a contract not a partnership.

 

[SamDoe1]

I don't think Apple has any interest in anything more than a partnership with Rivian for a number of things. Could be things like software integration into the Apple ecosystem all the way to helping Apple with expanding further into the automotive space like Google has.

They may invest, they may not. Amazon has a huge stake in Rivian and a large outstanding order for goods to be delivered but it doesn't seem like there's a huge push for Amazon to be integrated into the vehicle beyond the crappy, lackluster integration of Alexa which doesn't really do much for Amazon anyway. The big thing for Amazon is the integration into the EDV software which was likely planned and integrated from the beginning. The vehicles intended for everyone else don't have much Amazon in them anyway.

 

[kurtlikevonnegut]

Amazon has reduced the amount of EDV’s they buy from Rivian each year.

I don't think that is true. My understanding of the agreement is that Amazon will buy a minimum of 10,000 per year with the full 100,000 by 2030. They have fulfilled that requirement, but not exceeded it. I think that there were some who thought that they would match their orders to Rivian's ability to produce them and get Rivian to the 100,000k mark considerably faster than the 2030 deadline, but that hasn't come to fruition. That's not the same thing as decreasing orders.

 

[richguess]

I have a Tesla M3 L/R, have a R2 on order. I don’t use any of the apps, just get in the car and drive. Of course, I’m 77 and wear hearing aids. But I’m waaaay more interested in the handling and performance of the vehicle, its range and reliability than the electronic gadgets. Yes, I understand they are computers/microprocessors on wheels. But the driving aspects are where the fun lies.

 

[kcwenner]

I really hope that this doesn't happen. Anything is possible.

I wouldn't mind Rivian booting out Alexa for Siri, though.

Agreed, Alexa IQ 100 at best. Siri at least 120

 

[Hercules10]

Agreed, Alexa IQ 100 at best. Siri at least 120

No Alexa is borderline 80

 

[Zeusy Zeus]

I don't think that is true. My understanding of the agreement is that Amazon will buy a minimum of 10,000 per year with the full 100,000 by 2030. They have fulfilled that requirement, but not exceeded it. I think that there were some who thought that they would match their orders to Rivian's ability to produce them and get Rivian to the 100,000k mark considerably faster than the 2030 deadline, but that hasn't come to fruition. That's not the same thing as decreasing orders.

I hear what you’re saying but to satisfy an order that large there needs to be a pace. So that means they would have to double last years order this year which doesn’t look like they have. I think Amazon has realized they don’t need that many vehicles (at least not currently) and they have all the leverage. Have they even announced how many EDV’s they will produce for Amazon this year? Nope and I wouldn’t be surprised to hear no mention until Q4 with another disappointing number.

 

[kurtlikevonnegut]

I hear what you’re saying but to satisfy an order that large there needs to be a pace. So that means they would have to double last years order this year which doesn’t look like they have. I think Amazon has realized they don’t need that many vehicles (at least not currently) and they have all the leverage. Have they even announced how many EDV’s they will produce for Amazon this year? Nope and I wouldn’t be surprised to hear no mention until Q4 with another disappointing number.

Service Centers and charging infrastructure are the limiting factors for adoption. These vans need the charging infrastructure and local support for repairs through a Service Center before they are added into the mix. These restrictions have slowed the rollout of the vans to specific geographical areas, but once those areas are saturated with EDVs they don't have a need for more until they open a new geographical area. Amazon is being very deliberate about their rollout, and it's clear that Rivian is also being very deliberate about their process as well based on the pilot programs that they are running.

Rivian is not behaving as if they are in a rush to push vans out the door, so I don't think they are seeing challenges on that front as of now.

 

[Zeusy Zeus]

Service Centers and charging infrastructure are the limiting factors for adoption. These vans need the charging infrastructure and local support for repairs through a Service Center before they are added into the mix. These restrictions have slowed the rollout of the vans to specific geographical areas, but once those areas are saturated with EDVs they don't have a need for more until they open a new geographical area. Amazon is being very deliberate about their rollout, and it's clear that Rivian is also being very deliberate about their process as well based on the pilot programs that they are running.

Rivian is not behaving as if they are in a rush to push vans out the door, so I don't think they are seeing challenges on that front as of now.

And if they were would we hear about those challenges? That’s my point. I want to be optimistic here also but I just don’t see it.

 

[jjswan33]

And if they were would we hear about those challenges? That’s my point. I want to be optimistic here also but I just don’t see it.

You have no information but you want to sound the alarm, some might call that FUD

You have to remember that the deal with Amazon is cost+ and the price to produce these is going down, by the end of the decade I wouldn't be surprised if it is half of what it is today. As a result Amazon has no incentive to take on more vans faster than they need/want them.

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