Rivian Making Significant Progress With EVs Despite Supply Chain Issues: Earnings Call and Guidance Document Outlines 2021 Plans
Rivian is a new electric vehicle (EV) manufacturer that has been making waves in the industry. They have recently released their earnings report and conference call, which revealed some interesting information about their current production numbers and future plans.
The company reported that they had produced 2,425 vehicles as of March 8, 2022. They also stated that they expect to produce 25,000 vehicles in 2022 but could potentially produce 50,000 if they were not facing challenges with certain suppliers this year. The CEO noted that they have run the line for the R1T at higher speeds to demonstrate what they are capable of if they have enough components.
Although there was some disappointment expressed by investors over the slow ramp of production, many were encouraged by what was heard on the earnings call. The CEO gave plausible answers to questions about production ramp-up, cost of goods sold, supply chain issues, and pricing. Furthermore, it was noted that even though Tesla started deliveries in June 2012 with only 2,650 units, Rivian is likely to beat that number by 3 weeks into the quarter and may even surpass Tesla's first full year of 22k units by 3k in their own first full year.
Overall, Rivian is showing signs of progress despite the global supply chain challenges. Their focus on customer service and relationships is commendable and indicates that they are dedicated to building a strong brand. With any luck, they will be able to continue producing high-quality EVs while meeting their goals for 2021 and beyond.
In addition to the earnings report, Rivian also released a guidance document that provides more information about their plans for 2021. The document outlines their production goals and expected revenue growth over the next few years. It also includes details on how they plan to manage costs and maximize profits while continuing to invest in research and development of new technologies.
The guidance document is an important resource for investors who want to understand what Rivian is doing with its resources and where it expects its business model will take them in the future. With this information, investors can make informed decisions about whether or not investing in Rivian is right for them at this time.
Overall, there are many reasons why people should be excited about what's happening at Rivian right now. They have made significant progress since launching last year despite facing some challenges along the way due to supply chain issues caused by COVID-19 restrictions around the world. Their focus on customer service has been impressive as well as their commitment towards innovation which could lead them into becoming one of leading EV manufacturers worldwide soon enough!
How many vehicles has Rivian delivered to customers?
As of March 8, 2022, Rivian has produced 2,425 vehicles.
What is Rivian's estimated production rate for 2022?
Rivian expects to produce 25,000 vehicles in 2022, but noted they could produce 50,000 if they were not forecasting continued challenges with certain suppliers this year.
Is Rivian a disaster?
No, Rivian does build a great product and the slow ramp of production is very frustrating and costly, but it is not a “disaster.”
What did the earnings call say about cash burn compared to reserves and expected income over the next year?
It was not discussed on the earnings call.
Did anyone notice the switch to new batteries that will drop the standard range to 260?
Yes, Rivian announced that they are switching to new batteries that will drop the standard range to 260, following Tesla’s move.
Why did Rivian decide to honor the original configuration pricing?
According to their Shareholder letter, Rivian made the decision to honor the original configuration pricing due to their focus on their brand and the relationship they have with customers. This decision was not driven by mass cancellations.
What was the tone of the questions from institutional investors during the conference call?
The tone of the questions from institutional investors was respectful and while the questions were probing in the expected directions (production ramp-up, COGS, supply chain, pricing) the Rivian team gave plausible answers given the challenging environment.
What did Rivian say about their plans to increase production?
Rivian stated that they are working hard to increase production and have made significant progress in the past few months. They also noted that they are continuing to invest in their supply chain and are confident that they will be able to meet their production goals for 2022.
What is Rivian's outlook for 2021?
Rivian expects to deliver between 10,000 and 15,000 vehicles in 2021, with a focus on quality over quantity. They also expect to continue to make progress on their cost structure and supply chain, which should help them reach their goal of 25,000 vehicles in 2022.