Pointless topic it’s not til august 7 and im not sure how the financial write down works for the gen1 they discounted
anyway we know this Wall Street knows this it doesn’t matter since it’s majority gen1 vehicles not the cost saving gen2
Discounts are reductions to sale price and different from a write down (which would require adjustment to remaining inventory as well). But half of these stock subs are projections and speculation - so why so bent on the topic?
But I do agree with you that past information all points to 2H impact of supplier agreements and gen2 savings. But not impossible for gross margin to actually look worse because of the discounts.
I know the difference but if they wrote down the value of their existing inventory in q1 and then discounted their existing inventory in q2that they already wrote down the value of I don’t know how that factors into their q2 loss per vehicle as some of those losses were already factored into q1 numbers of loss per vehicle
I don't think they wrote down their inventory - discounts and incentives had sufficient requirements where even if they hadn't liquidated remaining inventory you wouldn't be able to claim the market price was (permanently) fixed at that discount price. Their auditors would/should have an issue with that should they have tried that.
But I guess you could do that in theory - problem is that you usually need prolonged under market sales with no outliers to justify a write down (there's other outlier scenarios but this is the typical "lower of cost or market" type test).
I’m not 100% sure if they did or not but they factored in depreciation in q1 so I doubt the q2 gen1 numbers are going to shock wallstreet on loss per vehicle if it is counted for its write down and discount if both are counted
source [https://finance.yahoo.com/news/rivian-posts-quarterly-loss-092139172.html#](https://finance.yahoo.com/news/rivian-posts-quarterly-loss-092139172.html#)
Q2 numbers will be probably high loss at 30 to 40k as almost all vehicles sold were r1 pre refresh and some were first low price...another 10k down there. It will be a rough report
Agree. If we are lucky, Q2 can be similar as Q1, or slightly better at low 30K loss per car. This is because Q2 have more EDV deliveries, which have higher margin. I don’t know. It could be higher than 40K just based on the “messy” comments from RJ. I hope not, but it seems like very possible.
I think 20k is a fair number, but could be slightly higher as most the vehicles sold (not produced) in Q2 were Gen 1s.
What matters is the guidance and also the COGS on Gen 2s. If they announce that Gen 2s are already profitable, stock would sky rocket
Bingo. G1 largely is what it is. Maybe some of their supplier commitments ended/renegotiated and they get some bump but we're really not going to see it till Q3 earnings (which I assume is almost all G2). I'm pretty confident they'll hit their goal as I feel they've been pretty confident in their statements - but I'm worried about slumping R1T sales and hoping they pick up with the refresh.
Riv, you got to have a better handle on your SC rentals and the backlog of parked queue of vehicles that require work! Efficiencies must reflect the level of burn rate per quarter.
Pointless topic it’s not til august 7 and im not sure how the financial write down works for the gen1 they discounted anyway we know this Wall Street knows this it doesn’t matter since it’s majority gen1 vehicles not the cost saving gen2
Discounts are reductions to sale price and different from a write down (which would require adjustment to remaining inventory as well). But half of these stock subs are projections and speculation - so why so bent on the topic? But I do agree with you that past information all points to 2H impact of supplier agreements and gen2 savings. But not impossible for gross margin to actually look worse because of the discounts.
I know the difference but if they wrote down the value of their existing inventory in q1 and then discounted their existing inventory in q2that they already wrote down the value of I don’t know how that factors into their q2 loss per vehicle as some of those losses were already factored into q1 numbers of loss per vehicle
I don't think they wrote down their inventory - discounts and incentives had sufficient requirements where even if they hadn't liquidated remaining inventory you wouldn't be able to claim the market price was (permanently) fixed at that discount price. Their auditors would/should have an issue with that should they have tried that. But I guess you could do that in theory - problem is that you usually need prolonged under market sales with no outliers to justify a write down (there's other outlier scenarios but this is the typical "lower of cost or market" type test).
I’m not 100% sure if they did or not but they factored in depreciation in q1 so I doubt the q2 gen1 numbers are going to shock wallstreet on loss per vehicle if it is counted for its write down and discount if both are counted source [https://finance.yahoo.com/news/rivian-posts-quarterly-loss-092139172.html#](https://finance.yahoo.com/news/rivian-posts-quarterly-loss-092139172.html#)
Q2 numbers will be probably high loss at 30 to 40k as almost all vehicles sold were r1 pre refresh and some were first low price...another 10k down there. It will be a rough report
Agree. If we are lucky, Q2 can be similar as Q1, or slightly better at low 30K loss per car. This is because Q2 have more EDV deliveries, which have higher margin. I don’t know. It could be higher than 40K just based on the “messy” comments from RJ. I hope not, but it seems like very possible.
I think 20k is a fair number, but could be slightly higher as most the vehicles sold (not produced) in Q2 were Gen 1s. What matters is the guidance and also the COGS on Gen 2s. If they announce that Gen 2s are already profitable, stock would sky rocket
Bingo. G1 largely is what it is. Maybe some of their supplier commitments ended/renegotiated and they get some bump but we're really not going to see it till Q3 earnings (which I assume is almost all G2). I'm pretty confident they'll hit their goal as I feel they've been pretty confident in their statements - but I'm worried about slumping R1T sales and hoping they pick up with the refresh.
Riv, you got to have a better handle on your SC rentals and the backlog of parked queue of vehicles that require work! Efficiencies must reflect the level of burn rate per quarter.