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See my reply above. By definition, contribution margin excludes fixed costs. Gross margin includes fixed costs, which is why Rivian needs to get to contribution margin positive before they can get to gross margin positive. If you doubt what I am saying, please just google the definition of...

Actually it is. Contribution margin = revenue minus variable costs (aka PARTS and DIRECT LABOR). What's your definition?

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...

Looks like an amazing deal. 20% off an $80k R1S puts you at $64k. Most Rivian owners probably earn too much to qualify for the EV tax credit but that would get you to ~$60k.

Congrats on the great deal. I wonder how this impacts Rivian's revenues from Chase (their financing partner). My understanding is that when a customer leases a vehicle, Chase purchases it from Rivian and handles the transaction from there with Rivian retaining some risk on residual values...

I checked the R1S shop today and noticed a few dozen configurations in the $75k-$90k range - the most I've ever seen. Seems like they are finally starting to ramp up DM/Standard production which should unlock a meaningful amount of incremental demand (albeit at the expense of ASPs).

Seems like it would make sense to just allocate more R1T production towards R1S. Still only ~100 R1S in shop vs ~1,000 R1Ts.

Broadly speaking I agree that they won't be able to reach net income profitability with just Illinois given their current cost structure. That said: * You are omitting any potential gross profit contribution from R1/Vans if they can turn that around. * The overall market may be frothy but...

There may be some truth to the "osborne effect" - in this case potential cannibalization of the R1S by the prospect of R2. I could see it happening if you are not wedded to having a 7-seater vehicle and are price sensitive + willing to wait a few years. And visually I'm not sure I would be...

Even fewer R1S in the shop today - maybe 100 or so...

I know we no longer care about the R1 vehicles anymore, but is anyone else wondering why there are ~900 R1T's in the shop but only ~150 R1S? If anything, the R1S should have more inventory as it is twice as popular as the R1T. Seems like it would make sense to shift R1T capacity over to making...

Model 3 reservation holders had to put down $1k as well (probably more like $1.3k in today's dollars) which makes comparisons difficult as the R2 deposit is only $100.

I'm not sure you could even call this an "end of quarter" push given we are still in the first week of March... I'm surprised they are doing that when R1S inventory looks like its still only 1/4 of where R1T inventory is.

Wow, that's shocking to me given that a quad costs $8k more than a dual motor. That's likely the biggest "discount" that anyone has gotten on an R1S/R1T. Anyone else have similar experiences?

Assuming your Tesla numbers are correct (Tesla actually doesn't disclose MS and MX unit sales separately - nor do they give unit sales for US vs. Rest of World), R1 and MS/MX are neck and neck. Rivian sold 50k vehicles in 2023, not 57k. 57k is how many they produced. The minimum order for...

Given all the recent news about weak demand, is anyone else surprised by the (more or less) complete lack of Standard/Standard+ pack R1S in the shop?

Wow, that owner paid $98k? 30% off after a year looks like a great deal for the buyer, but maybe the repairs had a lot to do with it too. I don't think the average R1S would depreciate that much with that mileage/age.

Standard+ is entirely new. Standard gives you the exact same range (270 miles) as it did before but at a lower price. Standard+ gives you more range (315 miles) at the old Standard price. So with Standard+, Rivian is effectively giving you more for your money. Thinking about it now, it...

Well, it's nuanced. You're right that Max pack/Large pack prices are the same, but Standard pack prices have been lowered for the same specs. Rivian made an honest to God, "apples to apples" price cut on the entry model R1T. An R1T Dual Motor Standard Pack now costs $70k vs. $73k previously...

Well, lowering prices on the base models would be one element. When supply is low and demand is high, carmakers raise prices (see TSLA during COVID). When supply is high and demand is low, carmakers lower prices (see TSLA post-COVID).