Good day, ladies and gentlemen. Thank you for standing by. Welcome to the Rivian's first quarter 2023 earnings conference call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automatic message advising your hand is raised. Please note that today's conference is being recorded. I will now hand the conference ove ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission file number 001-41042 Rivian Automotive, Inc. (Exact name of registrant as specified in its charter) | Delaware | 14600 Myford ...

Financial Performance and Projections - The company incurred net losses of $1.0 billion, $4.7 billion, and $6.8 billion for the years ended December 31, 2020, 2021, and 2022, respectively [86]. - The company expects to continue incurring significant expenses and losses for the foreseeable future as it scales operations and invests in new areas of demand [86]. - The company anticipates needing additional equity or debt financing in both the near- and long-term to support its business plan [88]. - The company has experienced significant delays in the manufacture and delivery of its vehicles, impacting its production ramp and brand reputation [90]. - The company has limited historical data on demand for its products, making it challenging to forecast and manage supply chain requirements effectively [104]. - The company is experiencing a global semiconductor chip shortage, which has adversely affected its ability to manufacture and deliver vehicles, leading to increased delivery lead times and costs [108]. - The company acknowledges that negative publicity, whether true or not, could harm consumer perceptions and confidence in the Rivian brand [133]. - The company's financial results may vary significantly due to fluctuations in product demand and operating costs [210]. - Future cash flows will be partially allocated to pay interest and principal on indebtedness, limiting funds available for working capital and capital expenditures [214]. - The company has incurred significant debt, which may limit future financing options and operational flexibility [212]. Production and Supply Chain Challenges - The company faces rising costs for key raw materials, including lithium, nickel, aluminum, and cobalt, due to market volatility and supply chain disruptions [95]. - The company is dependent on a limited number of suppliers for critical components, which poses risks to its production capabilities [100]. - The company is required to provide demand forecasts to suppliers several months in advance, which can lead to excess inventory or manufacturing interruptions if not accurately estimated [104]. - The company may need to increase vehicle prices in response to rising costs, which could negatively affect customer perception and sales [97]. - The company relies on third-party partners for nationwide service coverage, but these partners may initially lack experience with the company's vehicles [162]. - The company has experienced operational risks, including small fires at its manufacturing facility, which could lead to production delays and increased costs [143]. Market and Competitive Landscape - The automotive market is highly competitive, with increased price competition affecting the company's ability to maintain market share and profitability [118]. - The demand for electric vehicles (EVs) is influenced by factors such as automobile prices, raw material costs, and government regulations, which could lead to lower unit sales and price pressure [170]. - The market for alternative energy vehicles is rapidly evolving, with factors like consumer perceptions, range anxiety, and competition affecting EV adoption [171]. - The company’s future growth depends on the adoption of EVs by commercial vehicle fleet operators, which requires educating fleet managers on the total cost of ownership [172]. - Changes to government incentives, such as the 30D tax credit, could adversely affect the competitiveness of the company's vehicles [177]. Regulatory and Compliance Risks - The company faces regulatory limitations on direct sales and servicing of vehicles, which could materially affect its ability to operate in various states across the U.S. [138]. - The company is subject to evolving privacy and data security regulations, which could result in significant liabilities and operational costs [232]. - The company is subject to various environmental, health, and safety laws that could impose substantial costs and cause delays in building manufacturing facilities [257]. - The company must comply with international, federal, and state motor vehicle safety standards, and failure to do so could adversely affect its business [254]. - The company may face challenges in obtaining necessary permits for its planned facility in Georgia, which could impact its business plans [256]. Strategic Initiatives and Future Plans - The company launched its first consumer vehicles, the R1T and R1S, and first commercial vehicle, the EDV, with initial deliveries starting in 2021 [92]. - The company plans to expand operations significantly, requiring substantial investments in infrastructure, personnel, and technology to support growth [127]. - Rivian's distribution model involves selling and financing vehicles directly to customers, which is relatively new and unproven, posing substantial risks and potential slower expansion compared to traditional dealership systems [137]. - The company is focusing significant resources on research and development, which may impact short-term financial results but aims to enhance long-term customer engagement and experience [135]. - The company is deploying the Rivian Adventure Network and Rivian Waypoints charging stations to improve charging infrastructure, but faces challenges such as performance issues and logistics [153]. Risks Related to Technology and Operations - Rivian's vehicles rely on complex software and hardware systems, and any errors or bugs could adversely affect customer satisfaction and the company's reputation [145]. - The company is dependent on third-party suppliers for emerging technologies, including battery technology, which may not be commercially viable or meet production requirements [151]. - Lithium-ion battery cells used in Rivian vehicles pose risks of fire if not properly managed, which could lead to lawsuits and harm the company's brand image [159]. - Unauthorized access to vehicle systems could result in risks to customers and negatively affect the company's brand and financial condition [236]. - The company may incur significant expenses and management distraction due to litigation related to intellectual property claims [240]. Labor and Operational Challenges - The company has implemented cost reduction efforts, including workforce reductions, which may affect employee morale and productivity [203]. - Labor union activities could disrupt operations and increase costs if employees seek union representation [204]. - The COVID-19 pandemic has caused significant disruptions in manufacturing and supply chains, impacting sales and operations [207]. Financial and Market Risks - Vehicle retail sales are heavily dependent on affordable interest rates, and a substantial increase in rates could negatively impact the company's financial condition [183]. - Rising interest rates may reduce vehicle affordability for customers, adversely affecting the company's business and cash flows [184]. - Insufficient warranty reserves could materially impact the company's financial condition and results of operations [185]. - Future product recalls may lead to significant expenses and damage to the company's reputation [188]. - The company faces risks related to product liability claims, which could result in substantial monetary exposure and negative publicity [190]. - International operations may expose the company to unfavorable regulatory, political, and economic conditions, impacting its business prospects [194].

Rivian Automotive, Inc. (NASDAQ:RIVN) Q1 2022 Earnings Conference Call May 11, 2022 5:00 PM ET Company Participants Tim Bei - Vice President, Investor Relations RJ Scaringe - Founder, Chairman and Chief Executive Officer Claire McDonough - Chief Financial Officer Conference Call Participants John Murphy - Bank of America Adam Jonas - Morgan Stanley Joseph Spak - RBC Capital Emmanuel Rosner - Deutsche Bank Alex Potter - Piper Sandler George Gianarikas - Baird Charles Coldicott - Redburn Mark Delaney - Goldma ...