Rivian Automotive, Inc. (NASDAQ:RIVN) Q1 2024 Earnings Call Transcript

RJ Scaringe: Well, thanks everyone for joining us on the call today. We’ve talked Claire and I for the last few quarters about the shutdown that we just we’ve just completed and are now re-ramping R1 production following that. This is a really important step for us. It was a critical step in order to achieve the long-term gross margin potential of the R1 platform. And of course, therefore the normal site. The execution that went into that from our teams and the precision through which that was pulled off, we’re proud of and we look forward to starting to see the numbers from that body of work flow into the financials and be able to talk about it in the context of these calls. But with that, we’re also happy to now have a physical and visual representation of our future products when we talk about R2.

So it’s not just an esoteric idea of a future product, but actually you can see very specifically how we see Rivian expanding to more addressable markets and lower price point vehicles. And the team is incredibly focused on driving efficiency and driving cost effectiveness into the business across every aspect of what we do. What we’ll see the most of is the improvements we’re making in COGS and that’s bill of materials, that’s conversion costs. As Claire talked about, that also ties to even starting to realize some of the benefits of our accelerated depreciation of equipment, but we’ll see that heavy focus continue. It’s a cultural drive within the entire business. And we are excited about going through the rest of this year and the path to demonstrating that through the gross margin profitability of R1.

And then of course as that translates to R2 launching in early 2026. So thank you everybody for joining and look forward to our next call.

Operator: Thank you for your participation. This does conclude the program and you may now disconnect. Everyone have a great evening.