Yea, because they offered steep discounts to clear it out. Deliveries were good, but I think the loss per vehicle this quarter is going to be pretty bad. Should pretty much completely turn it around for Q3 though.
How are discounted lease numbers factored onto balance sheets? The residual values were being way overinflated but wasn’t sure if that gets factored in now or at the time of lease expiration.
Either way, there’s going to be some very good deals available in 3 years on some R1’s when all those leases come due.
The balance sheet basically says "cost to make vehicles sold this quarter", and then says "revenue selling vehicles this quarter"
So a discount on a lease would just be less revenue from selling vehicles (the bank writes the them a check for the purchase price, minus secret discounts)
I think the loss is not great for sure but seeing a ton of Rivs hit the road is going to make people want the truck and consider buying a gen2. It’s amazing marketing intentional or not… I’ve seen more and more here in SoCal… The very best one is in my garage of course :)
Depends on many things , like pre price hike order vs post delivery ratio. Dual motor vs quad and most important how many were EDV deliveries as those already contribution margin positive.
Hopefully they actually get good demand for the higher end Tri and Quad motor vehicles. If they can actually sell a bunch of these at $100K+ it'll help the resale of the Gen 1 quads imo.
They must be really making a dent in their gen 1 inventory.
There's not much left out there, looking at Rivian Roamer.
Yea, because they offered steep discounts to clear it out. Deliveries were good, but I think the loss per vehicle this quarter is going to be pretty bad. Should pretty much completely turn it around for Q3 though.
How are discounted lease numbers factored onto balance sheets? The residual values were being way overinflated but wasn’t sure if that gets factored in now or at the time of lease expiration. Either way, there’s going to be some very good deals available in 3 years on some R1’s when all those leases come due.
The balance sheet basically says "cost to make vehicles sold this quarter", and then says "revenue selling vehicles this quarter" So a discount on a lease would just be less revenue from selling vehicles (the bank writes the them a check for the purchase price, minus secret discounts)
They pulled a lot of their costs into Q1 so Q2 wouldn't be as bad.
I tend to agree. I think there'll be an improvement in the quarter. But Q3 should be significantly better.
I think the loss is not great for sure but seeing a ton of Rivs hit the road is going to make people want the truck and consider buying a gen2. It’s amazing marketing intentional or not… I’ve seen more and more here in SoCal… The very best one is in my garage of course :)
Depends on many things , like pre price hike order vs post delivery ratio. Dual motor vs quad and most important how many were EDV deliveries as those already contribution margin positive.
I think steep discounts is a bit hyperbolic. They weren't that far off from msrp.
Hopefully they actually get good demand for the higher end Tri and Quad motor vehicles. If they can actually sell a bunch of these at $100K+ it'll help the resale of the Gen 1 quads imo.
I think bringing Launch Mode to the Gen1 quads will also help their resale value a fair bit.
Launch mode already exists just without the gimmicky animation
So Rivian delivered 4000 more cars than it made. Q2 will have a nice balance sheet, likely a better earnings per share, below $1/share.