Some interesting things were said by Rivian's CFO during his chat with Bank of America last week at the The Bank of America Securities 2022 Global Automotive Summit
- Rivian's capacity now is about 50k/year if supply chain not an issue. Target is 65k R1's, 85k EDV's. Have demonstrated by running parts of the line for a full hour - full shift at a time. They do this frequently.
- Have given tours and test drives to suppliers to help convince them Rivian is a serious producer in for the long haul. In addition to high level negotiations. Current constraints are mostly just suppliers trying to ramp up, but future constraints will (soon) involve getting more allocations from chip suppliers and convincing suppliers its a good investment of their supplier resources to ramp with Rivian
- Long term margins on vehicles targeting 20%, and margins of 65% on software and services.
- R1 line and EDV separate, except some common stamping. Also battery module, drive units and paint shop
- Use focus groups, mentions reading Reddit forums (aw yeah)
- They see a chance to be cash flow positive in 2024, EBITDA positive "afterwards"; need the software/services part to achieve this. Each plant will take ~3 years to be mature in operation/profits - R2 launch will be from from Georgia
- Was asked about prioritization between R1's and EDV. Shared mfg sections (batteries, paint, drives etc) not forced any choices yet. Redesigned some stuff in van to allow access to alternative chip supplies, may make it easier to ramp both R1's and vans. About 25% overlap in parts between R1's and Vans, hasn't been a limitation yet, so not made priority choices yet, didn't get a real answer to this.