pricedm
Well-Known Member
$RIVN after hours down 4%.
From the Shareholder letter:
Negative:
"We experienced a loss from operations in the first quarter of 2024 totaling $(1,484) million, as compared to $(1,433) million in the same period last year."
"Our net loss for the first quarter of 2024 was $(1,446) million as compared to $(1,349) million for the same period last year."
" The inventory as of March 31, 2024 was written down by $328 million for LCNRV. Additionally there were LCNRV losses related to firm purchase commitments of $45 million. We recorded a $150 million charge to reflect the LCNRV of inventory and losses on firm purchase commitments as of March 31, 2024."
Positive:
" We also announced that we will start R2 production in Normal which we expect to drive greater capital efficiency with over $2.25 billion of savings from plan, enable production to start in the first half of 2026, and reduce risk to launch the platform and associated ramp. We believe that the operating plan for our Normal factory at 215,000 units of annual production while executing against our cost efficiency roadmap will allow Rivian to generate positive free cash flow excluding growth capital investments in new production capacity and tooling. "
" Total expected Normal capacity following R2 launch and plant changes: 215,000 units of total annual capacity across R1T, R1S, EDV, RCV, and R2. This includes up to 155,000 units of R2."
[note: paint shop capacity around 150k/year as discussed on the call.]
" As a result of the retooling upgrade, we expect significant improvement in the material, depreciation, and conversion cost of our vehicles and remain confident in our path to achieving modest gross profit in the fourth quarter of this year."
" Thus far, consistent with our expectations, we have hit all major milestones associated with the plant retooling upgrade, and we are reaffirming our 2024 annual guidance provided during our fourth quarter and fiscal year 2023 earnings call of 57,000 total units of production and $(2,700) million in adjusted EBITDA."
"... reduce the capital expenditures required to launch R2. Because of this we are lowering our capital expenditures guidance to $1,200 million, a reduction of $550 million. We also expect savings from moving the R2 launch to Normal to impact 2025 and 2026."
From the Shareholder letter:
Negative:
"We experienced a loss from operations in the first quarter of 2024 totaling $(1,484) million, as compared to $(1,433) million in the same period last year."
"Our net loss for the first quarter of 2024 was $(1,446) million as compared to $(1,349) million for the same period last year."
" The inventory as of March 31, 2024 was written down by $328 million for LCNRV. Additionally there were LCNRV losses related to firm purchase commitments of $45 million. We recorded a $150 million charge to reflect the LCNRV of inventory and losses on firm purchase commitments as of March 31, 2024."
Positive:
" We also announced that we will start R2 production in Normal which we expect to drive greater capital efficiency with over $2.25 billion of savings from plan, enable production to start in the first half of 2026, and reduce risk to launch the platform and associated ramp. We believe that the operating plan for our Normal factory at 215,000 units of annual production while executing against our cost efficiency roadmap will allow Rivian to generate positive free cash flow excluding growth capital investments in new production capacity and tooling. "
" Total expected Normal capacity following R2 launch and plant changes: 215,000 units of total annual capacity across R1T, R1S, EDV, RCV, and R2. This includes up to 155,000 units of R2."
[note: paint shop capacity around 150k/year as discussed on the call.]
" As a result of the retooling upgrade, we expect significant improvement in the material, depreciation, and conversion cost of our vehicles and remain confident in our path to achieving modest gross profit in the fourth quarter of this year."
" Thus far, consistent with our expectations, we have hit all major milestones associated with the plant retooling upgrade, and we are reaffirming our 2024 annual guidance provided during our fourth quarter and fiscal year 2023 earnings call of 57,000 total units of production and $(2,700) million in adjusted EBITDA."
"... reduce the capital expenditures required to launch R2. Because of this we are lowering our capital expenditures guidance to $1,200 million, a reduction of $550 million. We also expect savings from moving the R2 launch to Normal to impact 2025 and 2026."
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