Rivian IPO roadshow video(s) & presentation

[svet-am]

That’s it. No oil. No filter. No transmission service. No maintenance other than the above. My brake pads look about 50% done. Regen braking is awesome for brake life.

I'm interested in your experience here. My wife is getting a Volvo XC40 Recharge so I've started paying attention to their forums as well. On those boards, a common issue with regen is that since it is used so much, the brakes begin to develop a rust/corrosion layer on them from being unused and in at least one reported case this caused the brakes to not work as intended in a fender-bender. Have you (or anyone else) noticed this kind of issue?

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[Dark-Fx]

The SEC can't tell me what to do! Not financial advice

 

[Dbeglor]

I'm interested in your experience here. My wife is getting a Volvo XC40 Recharge so I've started paying attention to their forums as well. On those boards, a common issue with regen is that since it is used so much, the brakes begin to develop a rust/corrosion layer on them from being unused and in at least one reported case this caused the brakes to not work as intended in a fender-bender. Have you (or anyone else) noticed this kind of issue?

I've heard similar things. Some have recommended every so often giving the brakes a good screeching ABS inducing slam at a red light. It's especially true in my Audi, because the brake pedal engages regen unless it's a hard stop.

 

[Dark-Fx]

I'm interested in your experience here. My wife is getting a Volvo XC40 Recharge so I've started paying attention to their forums as well. On those boards, a common issue with regen is that since it is used so much, the brakes begin to develop a rust/corrosion layer on them from being unused and in at least one reported case this caused the brakes to not work as intended in a fender-bender. Have you (or anyone else) noticed this kind of issue?

I just got a Polestar 2, which is essentially the same vehicle. One-pedal works in reverse but it seems it actually uses the friction brakes instead of regen. Just back down a long driveway aggressively once a month and it should be fine. In my Bolt I'd occasionally flip it in neutral and mash the brake pedals to knock all the glazing off. Doing that twice in a row it definitely stopped better the second time.

 

[Tango45]

I mean they are already referring to us retail pre-order holders as 'third party'.
Which makes me wonder, what do they consider as their primary market segments ?

"Third party" is a common term meant to denote an entity that doesn't have a direct connection to the key party. A company that makes ios apps that isn't Apple is a third party. A company that makes an accessory for a vehicle that isn't the manufacturer would be a third party. It isn't a designation based on priority or anything else that should prompt concern. It is a reflection of your relationship to Rivian. "Third party" basically means you don't have a relationship with Rivian (owning their stock does not count unless you own more than RJ). In this case, they're using the designation to indicate customers that aren't employees and don't go to space on phallic devices.

 

[yizzung]

Did anyone catch the brief clip of residential solar panels?

I don’t think the prospectus mentions solar business at all, and that may be more of a subtle suggestion that Rivian is “more than a car company” and should be valued that way.

Some great parts to this video. Here are some of the things I noticed that stood out to me:

• The fleet of "test drive" vehicles will be also used as service support vehicles (I presume this means they would be the replacement loaners for a repair)
• I love that the example of the pro-active repair notice is the rear wiper - pretty benign
• A sale of a vehicle is only the beginning of relationship, which is more of a product-plus-fee-for-services model (e.g. "Apple") than a sell-it-and-forget-it (e.g. "Ford") model (they used this phrase: "high margin lifetime revenue"). Over time - revenue will come more and more from value-added services
• He mentions the experience centers (e.g. Venice Hub) but also mentions Team Rivian outposts which would be "a little further out" (cool!)
• Commercial fleets will eventually carry people
• Wants to build Rivian into one of the most recognizable brands in the world
• Plans to expand the energy solutions portfolio - build on the energy/charging capabilities in residential, industrial, and commercial markets
• 9000 employees currently
• I love that RJ spends 1 hr/week with the new hires
• I love the "anything is possible" vibe. RJ says he grew up with this mentality... "not caring how hard it was, and thinking more about how right it would be when we pull it off." (RJ)

love it

I picked up on some of the same eyebrow raises. The home solar thing was interesting. Showed stock video of panels but the language seemed more akin to batteries and inverters. Probably a shot across the bow at Tesla.

Also very clear they see the data play. The Amazon trucks could provide great real time traffic data for their own proprietary nav and whatever the hell autonomous driving becomes although I’m still skeptical this will ever scale at a mass consumer level in my lifetime.

I also think they plan to milk us for years with subscription fees. Be a member of the off-road adventure club, get driver assist plus plus, etc. Not sure I’m eager to play, except for basic maintenance at this point. But I’m sure it gets investors happy.

 

[PostMinivanDad]

And only 3 service centers in Canada... Vancouver, Calgary and Toronto. I guess in Montreal we should get the R1T sometime in 2025 !

That eastern dot is not Toronto… just west of the NY/Vermont border. And its east of a line that seems to be the Ontario/Quebec border. Its either Montreal or a suburb halfway between Mtl and Ottawa. Of course… its just a dot… placed on a map of Canada… by an american…So it could mean Halifax.

 

[SeaGeo]

That eastern dot is not Toronto… just west of the NY/Vermont border. And its east of a line that seems to be the Ontario/Quebec border. Its either Montreal or a suburb halfway between Mtl and Ottawa. Of course… its just a dot… placed on a map of Canada… by an american…So it could mean Halifax.

Yeah, tbh, I'm not sure the person who puts those dots down knew what they were doing. At all.

 

[mgc0216]

I was wondering how they compute "the life of the customer" and on that same slide the "resale" figure at the end - wasn't sure what that was.

My gut tells me they're using 10 years for the life of a customer, so the ~5k for subscription services would be about $50/month (figure you get some portion of it free with purchase even after it leaves Beta - a la Sirius radio subs).

We haven't seen real pricing on the services arm yet, right?

 

[Dbeglor]

I was wondering how they compute "the life of the customer" and on that same slide the "resale" figure at the end - wasn't sure what that was.

My gut tells me they're using 10 years for the life of a customer, so the ~5k for subscription services would be about $50/month (figure you get some portion of it free with purchase even after it leaves Beta - a la Sirius radio subs).

We haven't seen real pricing on the services arm yet, right?

Yes, they have stated that the lifetime revenue figures are based on a ten year assumption.

I also haven't been able to figure out the resale figure they use, and it's roughly half of the total potential lifetime revenue. I could see assuming one, maybe two trade ins over 10 years that they make a few thousand dollars off of each, but ~$35k is a conundrum.

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