Rivian Q4 FY2021 Earnings Call 3-10-22

[Scoiatael]

Better up front planning over the last 2 years.

Redundant suppliers.

Alternative component options.

Others are successfully mitigating this.

Rivian is saying “wow, buying parts for cars is hard guys!!”.

Yep, they were planning on originally starting production in 2020, they should have started stocking up then.

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[RWerksman]

Pricing kerfuffle.

Thanks, John.

 

[paariv]

I'm frankly not impressed with RJ's prep. He should stop obfuscating and prefacing every non-answer with "covid"/"supply chain"/"lots of progress." It's usually more effective to address deficiencies head-on, without defensiveness, very directly, and say "we're learning and committed to doing better."

 

[fotoflux]

BoA banker is saying the new prices are too low. No F-ing way it's worth more than a Tesla Model X with an established brand and built out ecosystem.

 

[Guy]

Bank of America person asked a bad question on pricing and suggested even higher prices. The question about 100K units next year (without supply issues) was not answered.

 

[bd5400]

RJ is reiterating that pre-order pace hasn't changed with the price increase.

 

[aAlpine]

I'm frankly not impressed with RJ's prep. He should stop obfuscating and prefacing every non-answer with "covid"/"supply chain"/"lots of progress." It's usually more effective to address deficiencies head-on, without defensiveness, very directly, and say "we're learning and committed to doing better."

Classic CEO/politician speak. Lots of words without much said.

 

[Kmann1994]

Better up front planning over the last 2 years.

Redundant suppliers.

Alternative component options.

Others are successfully mitigating this.

Rivian is saying “wow, buying parts for cars is hard guys!!”.

Hang on – it sounds like they're doing all of those things based on his responses on the call. Hence why records are set each day in various areas of production, according to him. It's an iterative, continuous improvement process.

Ford has tens of thousands of Broncos waiting in snowy parking lots without parts that can't be delivered. GM is delivering cars without heated seats. Mercedes is delivering cars without power seats.

This is not a unique to Rivian problem. It's time to zoom outside of the Rivian bubble and look bigger picture. This is the entire auto industry right now.

 

[bac4uw]

Thanks for the play by play everyone... in a stupid Zoom call where I'm a mandatory passive participant! ?

 

[Redline]

BoA banker is saying the new prices are too low. No F-ing way it's worth more than a Tesla Model X with an established brand and built out ecosystem.

Just about everyone in the auto media space has mentioned they couldn't believe the bang for the buck. I do think they were underpriced.

 

[bd5400]

RJ's answer started to wander a bit, but it seems like RJ just confirmed that semiconductors are the biggest problem now. They can help get things like harnesses produced, because they can send in extra people to help suppliers produce those, but they can't do that with semiconductors.

Not surprising, but good to know since previously there were issues getting things like the cover for the R1T spare tire compartment.

 

[ironpig]

They are in real trouble if they can't give some ballpark weekly numbers.

 

[paariv]

Classic CEO/politician speak. Lots of words without much said.

It's one of the reasons why Steve Jobs was so effective. Dude was a sociopath/borderline, but that made him completely at ease with responding smoothly and calmly, whiel actually addressing the core point, when he was asked hard questions when he or his company had fucked up.

 

[TXR1S]

Wow, RJ will NOT say the weekly number. Must be either dismal or very intermittent.

 

[mgc0216]

They are in real trouble if they can't give some ballpark weekly numbers.

Don't confuse can't with won't.

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