Factory Event March 31? Maybe for R1S??

[Rivian-WI]

I got the call last Thursday about attending this 'event'. I said I was in and then got another email about saying pretty much that they may not have my exact config. If I choose to except whatever config, I would be responsible for any additional costs. I got a text message yesterday saying they will not have a truck for me.

This 'event' was all about them meeting numbers in the first quarter. It had very little to do with good customer service. They are playing on their customer's emotions. In some cases, it screams a little bit of bait and switch.

I wonder if they had a list of customers that was longer than the number of trucks available. They then worked that list to get the most trucks out the door.

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[Max]

Thanks for the empathy all.
I certainly recognize many would have loved to have been offered the silver one. I just feel like I'm already so close, why compromise.
The most disappointing thing is I was going to take my 8 year old out of school to take him over there. He was so excited.

I used to be a youngster waiting for a new bicycle and know how badly it must have sucked for him but I think it was for the better. You wouldn’t want a rushed end of the quarter truck you will have to send back for repair right after you get it. It would be just more disappointment. You have waited too long to risk it.

 

[Zoidz]

Sorry to hear that Rivian is creating these frustrating delivery situations. It sounds like it could have certainly been handled better.

This "push" is interesting to say the least - what's really behind it? End of quarter results, or just a push to improve cash flow in general? Vehicles sitting on their lot are millions of $$ of locked up cash, they should push to keep the factory lot empty at all times.

Did they over produce generic production batches, or are these specific customer builds that for what ever reason failed to finalize delivery at the last minute - last minute cancellation by the customer, financing not approved, etc? Many questions, few answers.

 

[Mysta]

I think you’re over analyzing a bit. They probably just made trucks and reached out to everyone within reasonable range and asked some if they would accept a different config and first come first serve.

 

[ads75]

Did they over produce generic production batches, or are these specific customer builds that for what ever reason failed to finalize delivery at the last minute - last minute cancellation by the customer, financing not approved, etc? Many questions, few answers.

Probably easiest way to send trucks out by the end of the quarter. I doubt it's anything more than that. And with the trucker shortages, factory delivery is also quicker. Some people say they would change their configuration for an earlier delivery, Rivian is providing an option. I would personally wait for what I wanted. Not everything is a conspiracy.

 

[crashmtb]

Sorry to hear that Rivian is creating these frustrating delivery situations. It sounds like it could have certainly been handled better.

This "push" is interesting to say the least - what's really behind it? End of quarter results, or just a push to improve cash flow in general? Vehicles sitting on their lot are millions of $$ of locked up cash, they should push to keep the factory lot empty at all times.

If it is indeed a push for maximized quarterly results, it’s exactly what I was wary of with them going public - focusing on value for shareholders rather than making the best possible product with the best possible service….which begets good $$$.

Did they over produce generic production batches, or are these specific customer builds that for what ever reason failed to finalize delivery at the last minute - last minute cancellation by the customer, financing not approved, etc? Many questions, few answers.

D) all of the above?
If you build it, they won’t all come ?

 

[Zoidz]

Probably easiest way to send trucks out by the end of the quarter. I doubt it's anything more than that. And with the trucker shortages, factory delivery is also quicker. Some people say they would change their configuration for an earlier delivery, Rivian is providing an option. I would personally wait for what I wanted. Not everything is a conspiracy.

Not implying any conspiracy whatsoever, just curious as to why.

 

[Daedalus]

What time is this "event" suppose to start ?
Any confirmation on the speculation regarding R1S details coming out?

 

[Autolycus]

What time is this "event" suppose to start ?
Any confirmation on the speculation regarding R1S details coming out?

Someone mentioned that there were appointments available from 8AM all the way to 8PM.

I personally think there's about a 0.000001% chance of there being any R1S's there for people to see. This event is a big push to get as many trucks as possible delivered by the end of the quarter. A sideshow with an R1S would be a huge detractor from that effort. There's also no reason at all why they wouldn't be publicizing the R1S "reveal" if that were even a tiny part of the purpose of the event.

 

[Scott]

I never understood these pushes to meet quarterly numbers like this. In general, working consistently and efficiently will result in better numbers over the course of the year than sprinting at the end of every quarter.

To put it another way, cramming in a bunch of deliveries this week, lowers next week's numbers. This then makes you feel you need to play the same game at the end of Q2 to keep pace. If you just ignored those boundaries the steady state delivery rate doesn't change. In many cases, because you don't burn people out or do a shoddy job, the steady state rate goes up (as does customer experience)

 

[Davethadog]

5000th rivian?

 

[Mysta]

I never understood these pushes to meet quarterly numbers like this. In general, working consistently and efficiently will result in better numbers over the course of the year than sprinting at the end of every quarter.

To put it another way, cramming in a bunch of deliveries this week, lowers next week's numbers. This then makes you feel you need to play the same game at the end of Q2 to keep pace. If you just ignored those boundaries the steady state delivery rate doesn't change. In many cases, because you don't burn people out or do a shoddy job, the steady state rate goes up (as does customer experience)

I disagree a bit, have you listened in on earnings calls? They definitely want to be able to say 'We started delivering to non employees in March and were able to build x cars and deliver x cars' Which shows they have the logistics down and can make some fast, because they weren't able to answer those questions in the last earnings call.

 

[dduffey]

I never understood these pushes to meet quarterly numbers like this. In general, working consistently and efficiently will result in better numbers over the course of the year than sprinting at the end of every quarter.

To put it another way, cramming in a bunch of deliveries this week, lowers next week's numbers. This then makes you feel you need to play the same game at the end of Q2 to keep pace. If you just ignored those boundaries the steady state delivery rate doesn't change. In many cases, because you don't burn people out or do a shoddy job, the steady state rate goes up (as does customer experience)

I think it is driven by reducing inventory on the balance sheet for the quarter, not total deliveries. Even if vehicles are produced at a steady state (and ignore supply chain inventory), there will always be inventory due to shipping, scheduling appointments, etc.

So the only way to reduce outstanding inventory is to try and deliver everything still in inventory on the last day of the quarter. This usually means factory delivery (selling as soon as they come off the line). That has a measurable impact in outstanding inventory (which you hope is small to begin with) as compared to increasing deliveries which has to happen over a longer sustained period as you point out.

This doesn't mean production slows down on Monday (again ignoring supply chain inventory), just that there is less inventory to sell and you can start shipping products further away for delivery, creating more efficient/comfortable/enjoyable/planned deliveries.

In other words, delivering vehicles next week does not help reduce inventory this Q or next Q (it only help increase delivery numbers next Q).

But at the end of the quarter it will be chaos as the focus will be reducing inventory (everywhere but in particular @ factory) and trying to match ready buyers with inventory in real time.

Especially at this stage of Rivian's production ramp where outstanding inventory is likely relatively high compared total quarterly sales/deliveries.

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