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Rivian Q4 2021 Earnings Highlights: Moving into large-scale deliveries, but the production is still suffered from supply issues.
All you need to know about this earnings season
Key Takeaways:
Attitudes: Rivian remains highly confident in the ability to address the market opportunity. While the near-term industry conditions remain fluid, the path to creating long-term value is unchanged. In the consumer space, Rivian is building a global brand that applies to a wide range of products, sizes and markets in the truck, SUV and crossover segments.
Goals: Rivian plans to produce 25,000 electric vehicles in 2022. The estimated adjusted EBITDA for 2022 is negative $4.75 billionprimarily due to continued forward investments. Rivian will increase the R&D expense through investments in future vehicle platform, vertical integration of shared technologies and Rivian cloud technology.
Products: Rivian revisited the overall pricing strategy. With the addition of new product offerings, the R1 platform's price range is now $67,500 to $95,000, including both quad and dual-motor configurations and the standard range LFP battery pack.Rivian has the ability to produce approximately 50,000 vehicles across the R1 and RCV platform if not be constrained by the supply issues in 2022.
Q: How many EDVs have you delivered to Amazon to date have actually been delivered and are in service?
RJ Scaringe: We're in the process on EDV of ramping the production. And the production ramp on that vehicle is actually going a lot smoother than what we've seen on R1. And it's really capturing a lot of the lessons learned and a lot of the organizational capabilities that we've built on the ramp-up of R1. And so, as we think about EDV, it is outrunning the supply chain by a significant degree today. So the vehicles that we're producing, we're using really to refine some of the software and integration, the digital integration with an Amazon system. So, we really look at the second quarter to see significant ramp-up of the EDV.
Q: We're talking about capacity to do 50,000 units right now on a tooled basis. I mean do you think on a tooled basis, the supply chain issues get worked out that you could do something like 100,000 units in 2023?
RJ Scaringe: We can confidently say we'd be the 55,000 vehicles by the end of 2023. The real constraint for our production is within the supply chain, and this has been a major focus for us. Every morning starts with thinking about which suppliers we need to go speak to and push harder on to make sure they're ramping as fast as the rest of our production line. But ultimately, our ability to ramp this year will continue to be gated by the supplier ramps. It's not all the bill of materials. It's a small fraction of the bill of materials where we're having some of these supplier constraints.
Q: What are your thoughts on battery and metals cost inflation? How do you think the increase in the price of nickel?
RJ Scaringe: We hope the inflation that nickel pricing very recently is short-lived. But the reality is there's going to continue to be movements around commodity pricing and it's going to be across a variety of commodities. But I'd also point out that we're developing a portfolio of battery solutions, inclusive of lithium ion phosphate and LFP pack.
Q: Can you give more context to us on what you actually saw in terms of cancellations and recouping of those orders from the pricing decision?
Jiten Behl: When we announced the new prices, we did see increased rate of cancellations in that 24-hour period between the price announcement and when we roll those prices back. But right after the reversals, we got massive reinstatement requests, and more than half of our customers requested to reinstate. So what we basically saw was the demand continues to be very robust both from a reinstatement point of view as well as from the new orders point of view. I think we continue to be very confident at the competitiveness of our product and how it's going to result in the growth of our backlog and demand going forward.
This article is a script from the Rivian Q4 2021 earnings call. In order to facilitate reading, we have made appropriate cuts. If you want to know more details, you can click here to re-watch the earnings call.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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Ab Woods : Production volume can be expected in the future![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Deep Value : The market of Electric Vehicle is fascinating, but there are many powerful competitors that Rivian still has to face, Tesla, NiO and BYD. I will prefer to invest on the Upstream Suppliers like power battery and battery Separator.
jahmaycan : Cover your bets with both.. EV is an reality.. the industry is in its "infancy." Seek out the stocks with good fundamentals.. and invest long-term.. 10 years down the road there will be benefits to be reaped
waving pines : Wow