Rivian's Q3 2024 Earnings Call

[00:00:02] Beim Quiz Wer weiß denn sowas erwartet dich der Gipfel des unglaublichen Wissens.

[00:00:08] Kennst du die richtige Antwort?

[00:00:09] 2018 wurde ein Wilderer im US-Bundesstaat Missouri dazu verurteilt, während seiner einjährigen

[00:00:16] Gefängnisstrafe a rein vegetarisch zu leben, b einmal im Monat den Film Bambi anzusehen

[00:00:22] oder c ein Kinderlexikon über Tiere auswendig zu lernen.

[00:00:26] Die richtige Antwort ist b einmal im Monat den Film Bambi anzusehen.

[00:00:30] Wer weiß denn sowas?

[00:00:32] Immer montags bis freitags um 18 Uhr im Ersten.

[00:00:39] Guten Tag, willkommen zu Rivians 3.

[00:00:42] Quater 2024 Earnings Conference Call.

[00:00:45] Bei dieser Zeit sind alle Mitglieder auf den listen-only-mode.

[00:00:48] Ich werde jetzt die Konferenz übernehmen, Tim Bates, Vice President of Investillations.

[00:00:53] Bitte gehen Sie bitte.

[00:00:54] Guten Abend und danke, dass Sie uns für Rivians 3.

[00:00:57] Quater 2024 Earnings Call befreitert.

[00:00:59] Heute bin ich von RJ Skaring, unserem CEO und Founder, Claire McDonough,

[00:01:03] unser CFO und Javier Varela, unser Chief Operations Officer.

[00:01:07] Before we begin, matters discussed on this call, including comments and responses to

[00:01:12] questions, reflect management's views as of today.

[00:01:15] We will also be making statements related to our business, operations, and financial performance

[00:01:20] that may be considered forward-looking statements under federal securities laws.

[00:01:25] Such statements involve risks and uncertainties that could cause actual results to differ

[00:01:29] materially.

[00:01:46] Hello, everyone, and welcome to Kilowatt, a podcast about electric vehicles, renewable energy,

[00:01:50] autonomous driving, and much, much more.

[00:01:52] My name is Bodhi, and I am your host.

[00:01:54] And on today's episode, we are going to talk about Rivian's Q3 2024 Earnings Call.

[00:02:02] But before that, I just wanted to give a little shout-out to Patreon supporter FriendlySleet66

[00:02:08] for meeting me for coffee this morning.

[00:02:11] Had a really good chat and really enjoyed it, so thank you.

[00:02:16] FriendlySleet66.

[00:02:17] You know what?

[00:02:17] I forgot to ask you why your handle is FriendlySleet66.

[00:02:23] But I didn't mean to ask you that.

[00:02:25] All right, well, that will remain a mystery for now.

[00:02:28] But what isn't a mystery is we are going to talk about Rivian's Q3 2024 Earnings Call.

[00:02:36] Let's go ahead and start off with RJ Skaring's opening remarks.

[00:02:39] As always, this earnings call was heavily edited by me, so if you want to get the full view

[00:02:45] of what's going on at Rivian, you can always look at the show notes, and I will put a link

[00:02:49] to Rivian's earnings call, and you can listen to the complete earnings call there.

[00:02:53] All right, here are RJ's opening remarks.

[00:02:56] I'm going to start by talking about the R1 and specifically the Gen 2 ramp-up.

[00:03:01] First, the material cost progress we've made, as well as the efficiency improvements within

[00:03:06] the plant, are really important and critical for our long-term profitability as a business.

[00:03:13] Those changes and a lot of the changes going into Gen 2 were focused on cost, but we also

[00:03:18] introduced hundreds of other design and engineering changes that enhanced the performance of the

[00:03:23] customer experience in the vehicle.

[00:03:25] One of those is the introduction of a new variant, what we call our tri-motor.

[00:03:29] It puts a single motor in the front and two motors in the back, and it delivers really

[00:03:34] acceptable performance.

[00:03:35] Performance is better than our first-generation quad, but with a much lower cost in terms of

[00:03:41] what it takes to manufacture it, and also with a substantial improvement to efficiency.

[00:03:46] And we're seeing a lot of excitement around the tri, and we're excited to also be bringing

[00:03:51] the quad to market, the updated quad, in 2025.

[00:03:56] Now, with that, we had a bunch of suppliers who brought on with the Gen 2.

[00:04:00] Around 50% of the bill of materials by cost is with new suppliers or with new contracts.

[00:04:08] And with that, there's been some challenges, and those have really impacted us in quarter.

[00:04:12] And this has been a tough quarter for us because of some of those supply chain or supply ramp

[00:04:18] challenges.

[00:04:19] And one of those suppliers in particular has limited our production quite substantially,

[00:04:25] and we're working very, very hard to address that.

[00:04:29] This is one of our highest priorities in terms of the business.

[00:04:33] And we're seeing this as really a short-term issue, but it certainly introduced challenges

[00:04:39] as we saw in Q3.

[00:04:41] Now, a lot of the learnings that went into the Gen 2 ramp-up, the design of the components,

[00:04:48] the design of the systems, are underpinning what's going into R2.

[00:04:52] And the R2 program is advancing.

[00:04:54] It's from a timing point of view, it's on track.

[00:04:58] And the product itself is really exciting.

[00:05:01] It's delivering a level of performance and capability in a package that really looks

[00:05:07] and feels like Rivian, but it's doing it at a substantial reduction in terms of its overall

[00:05:12] cost.

[00:05:14] And a key part of this isn't just the design of the components, it's also all the supplier

[00:05:18] relationships that we've grown and built through R1.

[00:05:22] And today, as it stands, we've sourced about 85% of the bill of materials on the R2 program.

[00:05:29] And that 85% that's been sourced is within our aggressive cost targets we've set for the

[00:05:36] program.

[00:05:37] And we've talked about these at our investor day, but this is overall going to be what

[00:05:43] allows us to reduce the cost of R2 relative to R1 on a sort of a like-for-like basis in terms

[00:05:49] of content by about 45%.

[00:05:53] Beyond just the cost focus that's gone into R2, this is also a program that's really been

[00:05:59] architected around creating something that's special and unique in the marketplace.

[00:06:04] And really, our key objective is to make sure we can capture the same level of market share

[00:06:10] and excitement that we've done with R1.

[00:06:13] We're R1, one of the strongest market share players for vehicles, flagship vehicles, over

[00:06:18] $70,000.

[00:06:20] And our hope, and of course what we're targeting, is to capture that same level of excitement,

[00:06:25] but at a price point starting at $45,000 with R2.

[00:06:30] The key to delivering all this is, of course, the launch of our plant and the production line

[00:06:35] here at Normal.

[00:06:36] And the expansions we're making to the facility are well underway.

[00:06:39] The grading work at the site level is essentially done.

[00:06:43] This positions us to start deliveries of R2 in the first half of 2026.

[00:06:49] And so that the progress that's being driven into the plant, the learnings from R1, and of

[00:06:54] course the supply chain relationships we've established and the contracts we're putting

[00:06:58] in place are really critical for both delivering on the timing, but also the aggressive cost targets

[00:07:03] we've set for this program.

[00:07:05] Now, we also announced today the sourcing of battery cells for the program.

[00:07:12] And we're using a cylindrical cell, a 4695 cell, so 46 millimeters in diameter, 95 millimeters

[00:07:18] tall.

[00:07:19] And that relationship with LG is something we've been working on for quite some time.

[00:07:24] And those cells go into a really uniquely designed pack where the modules and the pack in conjunction

[00:07:33] with, of course, holding the cells act as a core structural element of the vehicles.

[00:07:38] This is a structural battery pack where not just the structure of the pack is part of the

[00:07:43] body, but the top of the battery pack actually forms the floor of the vehicle.

[00:07:48] And so these are the types of decisions we're making across the R2 program.

[00:07:53] To drive cost efficiency through part elimination or part consolidation, which is key for us

[00:07:59] delivering at the price point we've talked about with R2, but doing that with a healthy

[00:08:04] positive gross margin.

[00:08:07] Now, beyond body structure, battery sourcing, the vehicle architecture, some of the things

[00:08:11] we've talked about, one of the other really important elements of R2 is leveraging the

[00:08:16] electrical architecture, our topology VCUs, and the software stack we've developed.

[00:08:21] And put that into the Gen 2 of R1 is that that platform underpins R2.

[00:08:28] It's also core for our joint venture with Volkswagen.

[00:08:31] Okay, so I'm going to break in here.

[00:08:33] There were a lot of questions asked about the joint venture with Volkswagen, and RJ gave the

[00:08:41] most generic answers possible.

[00:08:44] At the time of this recording, the joint venture had not been finalized, so he did not give

[00:08:49] any good, relevant information about the joint venture.

[00:08:56] I'm sure during the next earnings call, we'll find out a little bit more about the joint venture

[00:09:00] and get some more details on that.

[00:09:02] But as of right now, we don't have very many.

[00:09:04] And the analysts, they tried.

[00:09:07] They asked this question in several different ways to see if they couldn't tease out a little

[00:09:13] bit more information.

[00:09:14] And RJ was just very, very generic information.

[00:09:19] Here you go.

[00:09:21] We had already talked about the supplier challenges that they had with R1 and the Gen 2 R1, I should

[00:09:28] say, and how that limited production.

[00:09:30] I should say that Rivian got a $6.6 billion conditional loan.

[00:09:36] It's a federal loan from the Department of Energy for their factory in Georgia, and it's conditional

[00:09:42] on a couple of different factors, which are financial, environmental, technical, and legal.

[00:09:46] But as of right now, they have a $6.6 billion loan.

[00:09:51] After RJ spoke, Chief Financial Officer Claire McDonough had her say, and I'm just going to kind

[00:09:58] of run down some things to save a little bit of time because there's a lot of financial

[00:10:01] speak.

[00:10:02] So instead of making you listen to all that, I will just go ahead and give you the highlights.

[00:10:06] Rivian produced 13,157 vehicles in Q3.

[00:10:11] They delivered 10,018.

[00:10:14] They had $874 million in revenue, and they lost $392 million.

[00:10:21] Their gross loss per vehicle delivered was $39,100.

[00:10:29] So on average, that's what they lost for every vehicle they delivered.

[00:10:32] And then in preparation for R2 coming out, because as we know, they're going to start building

[00:10:38] R2 at their normal Illinois plant.

[00:10:41] To prepare for that, there's going to be several shared shops, like paint shops and things like

[00:10:47] that, that'll be shared between R1 and R2.

[00:10:50] They're going to do a shutdown to upgrade those shops in the second half of 2025 to allow R2

[00:10:56] to start production in 2026.

[00:10:59] And yeah, I think that's about it.

[00:11:01] There were also a lot of questions about regulatory credits.

[00:11:05] Rivian sold nearly $3 million worth of regulatory credits in the Q3 2024, which is an insane

[00:11:14] business.

[00:11:16] Obviously, they can't just generate revenue credits or regulatory credits.

[00:11:23] But man, $300 million is not a little bit of money.

[00:11:26] That definitely helped them on their losses for sure.

[00:11:31] All right, let's go ahead and jump into our analyst questions.

[00:11:34] We only have a few of these.

[00:11:35] We're going to start off with a R2 question.

[00:11:39] So let's go ahead and get into that.

[00:11:41] RJ, on the R2, I believe the $45,000 price variety is the one that's not the 300-mile range

[00:11:50] one.

[00:11:51] It might be below.

[00:11:51] So just wondering how competitive that would be.

[00:11:55] You know, we have GM with the, you know, Equinox sub 30,000 with 300-plus miles of range.

[00:12:12] How does that continue?

[00:12:13] Is it a different demographic perhaps that makes it, you know, different features beyond

[00:12:18] just battery range?

[00:12:20] Just love to hear how the competitive environment, you know, shakes out with that product at that

[00:12:27] range, at that price.

[00:12:28] Thanks.

[00:12:28] Yeah, thanks, Tom, for the question on R2.

[00:12:32] We love talking about R2.

[00:12:34] We're super excited about it.

[00:12:35] Just to clarify, the $45,000 starting price for R2 corresponds to a lower performance spec

[00:12:42] on the vehicle relative to what's possible at a platform level.

[00:12:46] But the range on that variant is still over 300 miles.

[00:12:51] So it's a 300-mile, what we say, 300-plus miles of range.

[00:12:55] But on a lower performance spec and with some of the content levels on the interior slightly

[00:13:00] different than the top spec variants.

[00:13:03] And, you know, we've spent a lot of time looking at this relative to what else is in

[00:13:07] the market.

[00:13:08] And one of the biggest unlocks, we believe, for overall demand of EVs and, you know, the

[00:13:14] path towards ultimately 100% of new vehicle sales being electric is the need for a lot of customer

[00:13:19] choice and a lot more choice than we have today.

[00:13:21] And there are very, very few compelling options in that sub-$50,000 price range.

[00:13:30] And, you know, we believe R2 is going to be an important product for giving customers

[00:13:36] choice.

[00:13:37] That's a unique form factor, unique performance and brand and product attributes.

[00:13:44] And having spent a lot of time in and around the vehicle, I can say I've never been as excited

[00:13:50] for a product as I am for R2.

[00:13:53] It's nice to hear that even the base model of the R2 is going to be over 300-mile range.

[00:14:01] That's great.

[00:14:02] I do take a little bit of exception of, you know, there's not a lot of compelling vehicles

[00:14:07] under the $50,000 price point because the Ioniq 5 is a good vehicle.

[00:14:13] You have the EV6.

[00:14:16] You have the, you know, Kiro, the Kia Niro and the Kona, Hyundai Kona.

[00:14:25] You have the Chevy Equinox, as he mentioned.

[00:14:28] You know, you have the Model Y.

[00:14:30] You have the Model 3, depending on which variant you get.

[00:14:32] So there are compelling offerings underneath that $50,000 mark.

[00:14:41] I don't think all of those vehicles that I listed off all have over 300 miles of range

[00:14:47] at those base numbers.

[00:14:49] You know, they're going to be in the 250s, somewhere around that.

[00:14:54] I think if Rivian can give us a really compelling vehicle for $45,000 that has over 300-mile range,

[00:15:02] and the Chevy Equinox can get over 300-plus mile range, I think that that's going to force

[00:15:15] other EV makers to make 300 the new minimum.

[00:15:21] You know, we thought back in, you know, 2016, 2017, that was going to be like the base, right?

[00:15:29] The 300 would be the base range.

[00:15:32] And that really hasn't happened.

[00:15:33] I'm looking right now to see where we're at with the Model 3 standard range.

[00:15:38] Give me a second here.

[00:15:41] Okay, so the Model 3 at...

[00:15:44] Because Apple or...

[00:15:47] Tesla likes to give you all of the prices that aren't actually the price of the vehicle.

[00:15:52] So, yeah, okay, so the Model 3 rear-wheel drive long range is sitting at 363 miles.

[00:15:59] So that's great.

[00:16:00] And then the Model Y, this is super interesting while I'm in the middle of doing a podcast, I'm sure.

[00:16:09] The Model Y is going to be over that.

[00:16:13] Or it's going to be over 300 if the Model 3 is.

[00:16:19] So, yeah.

[00:16:20] So, yeah.

[00:16:21] So, the Model Y rear-wheel drive is sitting at 337-mile range for 44,000 or just under 45,000, excuse me.

[00:16:35] So, yeah, Tesla's definitely doing that.

[00:16:37] The other brands that I mentioned, the Kia's and the Hyundai's and even like the Ford Mach-E, I don't think they're quite hitting that 300-mile range.

[00:16:46] But I do think over time, companies like Tesla and GM now and Rivian, if they can actually hit the targets that they're looking for, those are going to be table stakes.

[00:17:00] Because I have every faith that Rivian is going to build a compelling vehicle for around $45,000.

[00:17:08] And if companies like Ford and Hyundai and Kia, they can't pick that up, that range up to over 300 miles, I think that's going to hurt them when consumers are looking at their choices.

[00:17:25] Let's move on to our next analyst question, which on the surface is about Rivian Connect.

[00:17:32] But really what it's about is services that Rivian is going to offer its customers for subscription or just buy outright.

[00:17:42] There was a fair amount of verbiage in the shareholder letter on Connect Plus streaming apps and things of this nature.

[00:17:51] I mean, it sounds sort of compelling.

[00:17:53] It sounds like the take rates are pretty high amongst people who have been trying it.

[00:17:57] Is this something that is modelable, something that investors should be including in their own forecasting?

[00:18:05] Or is it not quite material enough to call that out?

[00:18:08] Thanks.

[00:18:11] Yeah, this is sort of one of the big questions I think being asked broadly around the automotive industry is

[00:18:19] to what level do you think about the future services show up as recurring revenue?

[00:18:24] Or do they show up first on price on the front end?

[00:18:26] And in this case, the Connect Plus, what that's relating to is there is a variable cost associated with providing the services.

[00:18:35] So the data costs to, let's say, stream music or to have a Wi-Fi hotspot are non-zero.

[00:18:44] And so this reflects us capturing that in a bundled package that brings along with it not just the price that covers the cost for us to be providing the connectivity,

[00:18:57] but also some additional features.

[00:18:59] And we're watching this very closely and, in particular, thinking about it in the context of the growth of our autonomous platform

[00:19:06] and what that provides in terms of new features, new capabilities, and how to appropriately charge for that.

[00:19:12] And I think it's really to tell for us as an industry to say whether customers are going to prefer to pay for things up front

[00:19:20] or whether they'll like to pay for them over time.

[00:19:23] And the way we've at least modeled it internally is we've looked at the likely existence of both models,

[00:19:30] where you'll have some customers that would prefer to pay up front and others that would rather pay on a more variabilized basis.

[00:19:37] And, you know, we sort of look at it with some indifference, meaning ultimately it's going to get captured in the price of the vehicle,

[00:19:45] but it can be captured in all three different ways.

[00:19:48] I don't have much to say on Rivian Connect Plus.

[00:19:52] I do think that, you know, the connected services so that you can stream music and, you know, whatever,

[00:20:00] watch a movie or have updated maps with traffic and things like that.

[00:20:06] I think that's really important.

[00:20:07] And I'm okay if companies want to charge for that as long as it's a fair price.

[00:20:11] In terms of the autonomous suite, it sounds like they're going to do something similar to what Tesla's doing

[00:20:15] where they have a, you know, a lease price or a subscription price.

[00:20:19] I shouldn't say lease, subscription price.

[00:20:21] And then, or you can just buy it outright.

[00:20:23] Now, what I am hoping is that Rivian looks at what they're doing in terms of the autonomous driving software that they're producing,

[00:20:33] the package, the hardware and the software, and they price it at a rate that is more fair.

[00:20:40] I still think Tesla's too expensive.

[00:20:42] I think $99 a month is a pretty high number.

[00:20:47] I think that's quite expensive.

[00:20:50] I think $8,000 for the life of the vehicle is still pretty, pretty expensive.

[00:20:56] I mean, maybe it works out if you're going to keep your vehicle over seven years

[00:21:01] because it's a little bit less than seven years at $99 a month to hit $8,000, right?

[00:21:08] A lot of people don't do that.

[00:21:09] So it doesn't make sense, you know, right out the get-go to pay up front

[00:21:14] if you're not going to keep your vehicle for seven years

[00:21:16] or if something happens and you get in an accident, the insurance probably isn't going to refund you that money

[00:21:21] or, you know, that's not going to be covered when you get your settlement from the insurance.

[00:21:25] So that's just a lot of money and a lot of risk, in my opinion.

[00:21:29] All right, let's move on to our last analyst question, which is all about R1 variants and who wants what.

[00:21:37] And I thought this was a pretty interesting question and answer.

[00:21:41] And our next question coming from the line of Mike Sliske with DA Davidson.

[00:21:47] Your line is now open.

[00:21:50] Yes, hi.

[00:21:51] Thanks for taking my question.

[00:21:53] I guess given some of the challenges you mentioned, the consumer challenges you had mentioned earlier,

[00:21:58] just some of the demand impacts that that's been having,

[00:22:05] I've heard about these kind of new variants that might have higher price and you've got a higher price assumption in the fourth quarter.

[00:22:11] But I'm curious if you're seeing on a like-for-like basis when people are making orders,

[00:22:16] are they trying to look at cheaper options or maybe fewer features?

[00:22:21] Has that been a trend at all?

[00:22:26] It's important to recognize there's really a broad spectrum of customers.

[00:22:31] And because of that, we've launched now three different powertrain configurations.

[00:22:36] So we have a dual motor, a tri-motor, and in 2025, we'll be launching our updates to the quad motor.

[00:22:44] And then we have a couple of different battery pack sizes.

[00:22:47] We have a standard of large and what we call our max pack.

[00:22:50] And effectively, that's us trying to populate the demand curve where we know some customers want the best thing they can possibly buy.

[00:23:01] So they're willing to pay to get the two and a half seconds, zero to 60 and four miles of range.

[00:23:06] And others are going to be more price sensitive.

[00:23:08] I think what Claire is referring to and what we're excited about is just the level of customer excitement we're seeing for the tri and for our quad.

[00:23:18] And that, of course, is positive for us from a margin point of view.

[00:23:22] But these are hard things.

[00:23:24] You can imagine we tried to model this, predict this.

[00:23:26] And these are hard things to accurately predict and to now have the tri in the market and to see how customers are reacting to it.

[00:23:34] See when we put a tri-motor variant into our shop, how quickly it's there for about a moment.

[00:23:43] It disappears very quickly.

[00:23:44] The level of excitement and demand for that vehicle is high.

[00:23:47] And so looking into 2025, our next generation quad motor vehicle is really, I mean, it's just exceptional.

[00:23:57] The first gen quad was great, but this is a whole nother level.

[00:24:02] It's a vehicle that can do the quarter mile in less than 10 and a half seconds.

[00:24:05] It's incredibly smooth and refined.

[00:24:07] It can go into almost any imaginal off-road environment.

[00:24:11] And you can use it as an everyday driver while in conserve mode getting close to 400 miles of range.

[00:24:18] So it's just a very unique combination of attributes.

[00:24:20] And, of course, it'll be priced as such and therefore drive a healthy margin to the business.

[00:24:26] So this is the reason we have this different topology of motor battery combination and trim combinations to allow us to sell into multiple different customer types.

[00:24:38] There's a danger in offering too many options because that's going to make it harder for you to make money, right?

[00:24:46] You're going to have all these parts sitting in inventory.

[00:24:49] It adds complications to the production process.

[00:24:52] Like in the beginning, Tesla's configurator for the Model S was just vast.

[00:24:58] You know, I can't remember exactly what it looked like nowadays.

[00:25:02] But if you go back to 2015, 2016, like if you use the Wayback Machine or something like that, you could probably go in and look at their configurator.

[00:25:11] And there was just a lot of different options.

[00:25:13] And Tesla was like, we need to reduce these options so that we can save money.

[00:25:19] GM did something similar recently as well.

[00:25:22] So there's a real balancing act of making sure that you're providing what people want but also not providing so much that you're losing money.

[00:25:34] And right now, Rivian is obviously losing a ton of money, you know, to the tune of some $30,000 plus on every vehicle.

[00:25:43] You can't do that forever, you know.

[00:25:45] That's got to stop at some point.

[00:25:47] You got to stem the bleeding.

[00:25:49] So, yeah, I'm looking forward to seeing what Rivian does with R2.

[00:25:54] I'm really looking forward to seeing what they do with the further generations, you know, how they refine the R1 platform.

[00:26:01] And honestly, I would love it if they could be profitable in 2025.

[00:26:06] I'm not sure that they will be, but I would love it if they could be.

[00:26:09] That'd be pretty dope for them.

[00:26:11] Same with Lucid.

[00:26:12] I have the same hopes for Lucid.

[00:26:15] They're not high hopes, folks.

[00:26:16] They're not high.

[00:26:18] But I do hope that they're able to be profitable companies because I want them to stick around.

[00:26:23] I like what they're doing.

[00:26:24] All right, everybody.

[00:26:25] That is it for me today.

[00:26:28] This is released on Wednesday night on December 4th instead of Tuesday because I was losing my voice on Tuesday.

[00:26:37] I barely had a voice at all.

[00:26:39] This morning, it was coming back a little bit and it got a little squeaky.

[00:26:41] But this evening, it's strong.

[00:26:46] So I'm going to take it.

[00:26:48] I seized on this opportunity to record this episode.

[00:26:52] I hope you enjoyed it.

[00:26:53] If you want to email me, it's Bodie, B-O-D-I-E at 918digital.com.

[00:26:57] I'm still on X and my handle is at 918digital.

[00:27:04] And, yeah, I think that's it.

[00:27:05] I hope you all have a wonderful day.

[00:27:08] And I will talk to you on Friday.

[00:27:11] Oh, you know what?

[00:27:12] Because I'm going to CES, and many of you have sent me the Aptera announcement that they're going to be at CES.

[00:27:18] So thank you very much for doing that.

[00:27:21] Because I'm going to CES, I'm going to start doing some more experiments with my little lavalier mics.

[00:27:27] So the podcast might sound a little different over the next couple of weeks just because I am trying to work out any sort of kinks.

[00:27:35] Because when I get on the show floor, I want to be able to actually conduct an interview.

[00:27:40] So, yeah, that's it.

[00:27:42] All right, everybody.

[00:27:43] Thank you very much.

[00:27:44] I hope you all have a wonderful week, and I will talk to you on Friday.

[00:27:47] I know I've said all that, but, you know, ending podcasts for me is hard.

[00:27:52] One more thing.

[00:27:53] I'm going to include RJ Scurringe's closing remarks.

[00:27:56] So it'll go me poorly ending the podcast, which I'm doing right now, and then probably an ad break.

[00:28:05] Unless you're a Patreon supporter, then you don't have to listen to ads.

[00:28:08] And then RJ's closing remarks.

[00:28:11] And then from there, you'll just hear music.

[00:28:14] And then nothing.

[00:28:14] Here we go.

[00:28:16] Thanks, everybody, for joining us on the call today.

[00:28:18] As you heard me say in our opening remarks, this is a challenging quarter with some of the production interruptions we had around supply and some of the nuanced complexities associated with transitioning into the Gen 2 vehicle and ramping our Gen 2 R1.

[00:28:35] But we are incredibly excited about what lies ahead, not just with Q4, but thinking into 2025 and very importantly into 2026.

[00:28:44] The excitement around the R2 program, both internally and externally, but from customers, but also just with the teams that are developing the product and preparing it for launches is contagious internally.

[00:28:56] And every time I think to myself, I wish this was available today.

[00:29:01] So we are fully embodying that and doing everything we can to get that vehicle to market, both on time, but as Javier said, also really excited about how we're maintaining the program around its cost targets, which is such a significant focus for us with that program.

[00:29:21] And with that, it's exciting to have Javier join us on this call today.

[00:29:24] He's been a great partner to me as we're continuing to build Rivian for the next stage of growth and really focus on preparing ourselves for a significant ramp up in volume with R2.

[00:29:36] And along with that, considerably lower costs to produce our vehicles.

[00:29:40] So with that, thank you everyone for joining the call and look forward to our next one.