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Announcing our new "CLUBS" section where you can join or create a Rivian club or group! You can use this new feature to conveniently plan and discuss local events, gatherings or other club/group related topics.
So we encourage you to join (or start) special-interest and regional-based Rivian clubs at: https://www.rivianforums.com/forum/group-categories/clubs-groups.1/
Said surgery on his shoulder. Said he’ll be fineWonder what happened that he’s wearing a sling?
I had a hook plate to repair my clavicle. Immobilized my arm for 3 months. Still recovering, a year on. Getting that little bastard out was the single most physically joyous moment I’ve had in my life.He had surgery on the shoulder. He is wearing an immobilizer worn post-op. Ask me how I know.
My hope is people stop using this bs metric.My hope is that they stop losing money on each vehicle and continue with great lease deals until interest rates come down.
Actually Rivian does lose money on every car they sell (except for the edv) and they admitted as much on the last earnings call.But they don't "lose money on every car they sell". The cost of parts plus blue collar labor to manufacture a vehicle does not exceed the sell price.
Thank you for calling this out. Contribution Margin is the metric that matters most for the moment, and it’s not publicly reported.Actually Rivian does lose money on every car they sell (except for the edv) and they admitted as much on the last earnings call.
Revenue minus direct cost of parts / labor is what Rivian calls their "contribution margin" and they said they were still negative on it for the quarter even for post price hike R1s.
Sad but true.
That said, after the rework they will definitely be in the positive on contribution margin and moving towards positive gross margins.
Someone asked about CarPlay one too many times and it got a little heated.Wonder what happened that he’s wearing a sling?
Revenue minus direct cost of parts / labor is what Rivian calls their "contribution margin" and they said they were still negative on it for the quarter even for post price hike R1s.
Please help me understand how the rework (and efficiency updates) during shutdown will change revenue, parts and labor such that the R1 contribution margin will change from negative to positive.That said, after the rework they will definitely be in the positive on contribution margin and moving towards positive gross margins.
They are reorganizing parts of the plant for more efficient manufacture, they have renegotiated quite a few supplier contracts and in some cases using new suppliers and they are making major changes to the number of computer chips and computer architecture which cuts down on parts needed.Please help me understand how the rework (and efficiency updates) during shutdown will change revenue, parts and labor such that the R1 contribution margin will change from negative to positive.
As Ed pointed out, it isn't a BS metric. It is the most important metric.My hope is people stop using this bs metric.
Rivian is a startup company in a heavily capital intensive industry. Currently, expenses exceed revenue and they sell a certain number of vehicles.
But they don't "lose money on every car they sell". The cost of parts plus blue collar labor to manufacture a vehicle does not exceed the sell price. Rivian is expanding, Rivian has a lot of overhead with high quality engineers and other white collar workers. And that overhead is spread out over a small number of vehicle sales.
But as sales grow they won't need more CEO and CFOs. And when they double number of vehicle sales they won't need double the software engineers.