Rivian Automotive Inc at Deutsche Bank DB Global Auto Industry Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Emmanuel Rosner - Deutsche Bank AG - Analyst : So maybe to start, let's talk about these recent developments at Rivian. You unveil and started selling the second generation of your R1 vehicles late last week, incorporating some new technology and features, but also, designed for lower cost of production and better manufacturing efficiency. Can you talk to us about the main changes in the new vehicles? What customer's reception has been so far, even though it's only been, I guess, a few days? And whether you were able to liquidate inventories of the old model before June 6 when you unveil this?

Question: Emmanuel Rosner - Deutsche Bank AG - Analyst : So can you quantify for us the cost or margin benefit from these new ones? How much of the improvement has to do with better supplier conditions versus cheaper new components or technology?

Question: Emmanuel Rosner - Deutsche Bank AG - Analyst : And a few months ago, you also introduced your future R2 and R3, more affordable vehicles. How much parts and technology commonality will there be between these and the new R1s? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 11, 2024 / 7:25PM, RIVN.OQ - Rivian Automotive Inc at Deutsche Bank DB Global Auto Industry Conference

Question: Emmanuel Rosner - Deutsche Bank AG - Analyst : Let's shift a little bit about -- let's talk about the environment, and I guess, the demand backdrop. All this work you're doing is in the middle of a general backdrop of US demand for EV that is maybe slowing down. We're seeing that in price cuts, rental car fleet, EV volume goals being lowered across the board by all automaker. Is demand for Rivian products being impacted? And if so, how do you address the current environment?

Question: Emmanuel Rosner - Deutsche Bank AG - Analyst : You guided to 57,000 units of production this year. What have you assumed about demand trajectory for your product in order to absorb this production? And are you worried at all by the pricing environment for EVs?

Question: Emmanuel Rosner - Deutsche Bank AG - Analyst : How is demand for the standard pack R1, which you started producing even before, I think the -- or at least offering before the shutdown, and now, started producing maybe with the LFP battery. Can you talk about the trim mix within R1 in terms of your production or demand?

Question: Emmanuel Rosner - Deutsche Bank AG - Analyst : Looking ahead, you said that after this recent factory upgrade, available capacity for R1 will be 56,000 units on two shifts before, obviously, any shutdowns, et cetera. If I add a stable number of EVs, it doesn't necessarily suggest much volume growth in 2025 until R2 is launched the following year. First of all, is this the right understanding that 2025 is stable-ish type of volume rather than real growth? And if so, is it a function of demand for the R1?

Question: Emmanuel Rosner - Deutsche Bank AG - Analyst : In terms of the EDV program, can you elaborate on the current capacity for it? And do you expect to accelerate volume in the out years? Or will Amazon take steady deliveries until all orders are satisfied? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 11, 2024 / 7:25PM, RIVN.OQ - Rivian Automotive Inc at Deutsche Bank DB Global Auto Industry Conference

Question: Emmanuel Rosner - Deutsche Bank AG - Analyst : Let's pivot a little bit about pricing and margins. As we stand here midyear through 2024, can you talk about your latest thinking on margin trajectory this year? I think you said Q2 will be messy. Why is that? And are you on track for gross margin profitability by the end of this year?

Question: Emmanuel Rosner - Deutsche Bank AG - Analyst : So based on what you've seen post retooling and rerate, the input cost now from your new supplier relationship, the rate of the factory, some of the cheaper components that start you, this is what gives you confidence in getting to that profitability by the end of the year?

Question: Emmanuel Rosner - Deutsche Bank AG - Analyst : How should we think about the trajectory of profitability as we move forward and into next year? Is next year a year with more volume, more cost improvements? Will there be smaller or larger investments since you will be getting closer to this in R2 type of launch? I guess what happens beyond this near-term milestone of gross margin positive?

Question: Emmanuel Rosner - Deutsche Bank AG - Analyst : But then, is there an increase in investment as you get closer to this R2?

Question: Emmanuel Rosner - Deutsche Bank AG - Analyst : Got it. You were talking about these raw materials cost coming down. Can you update us on the input cost, deflation or that you're observing? We've obviously been hearing about these battery prices coming down as a result of the demand environment and the supply environment, but what are you specifically seeing? And what would be the timing of you seeing those benefits?

Question: Emmanuel Rosner - Deutsche Bank AG - Analyst : And then, would you expect the most recent round of China tariffs to impact your cost at all? I'm thinking, for example, a potential impact on the economics of your LFP battery pack? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 11, 2024 / 7:25PM, RIVN.OQ - Rivian Automotive Inc at Deutsche Bank DB Global Auto Industry Conference

Question: Emmanuel Rosner - Deutsche Bank AG - Analyst : But it is imported from China currently, the LFP pack?

Question: Emmanuel Rosner - Deutsche Bank AG - Analyst : Okay. Let's talk about R2. Now, that you've revealed the R2 vehicle, are you on track for production and deliveries in the early 2026? And since you're going to use the normal Illinois plant, is there a potential for a faster timeline on the ramp-in production?

Question: Emmanuel Rosner - Deutsche Bank AG - Analyst : So what is the work that you need to execute on to get ready for R2?

Question: Emmanuel Rosner - Deutsche Bank AG - Analyst : What will R2 be in terms of price points? And what's the addressable market? And then, where do you see most of the competition coming from? And is there a risk that it could be much more at that price point by then?

Question: Emmanuel Rosner - Deutsche Bank AG - Analyst : How are you thinking about profitability of the R2 vehicle? And what are the levers to reduce the cost of goods sold in order to make it profitable?

Question: Emmanuel Rosner - Deutsche Bank AG - Analyst : So is it mainly about sourcing?

Question: Emmanuel Rosner - Deutsche Bank AG - Analyst : I think you're seeing it invested in a couple of weeks in normal. You've already shown us the R1 redesign, the R2, the R3, the R3X, what can we expect at the Investor Day? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 11, 2024 / 7:25PM, RIVN.OQ - Rivian Automotive Inc at Deutsche Bank DB Global Auto Industry Conference

Question: Emmanuel Rosner - Deutsche Bank AG - Analyst : And then, just maybe a couple of questions on capital and capital allocation. what's your latest thinking about timing of the Georgia factory? And when would spending be needed?

Question: Emmanuel Rosner - Deutsche Bank AG - Analyst : Once you estimated runway with the current cash position, when would you need to raise more capital? And what options are you considering?

Question: Emmanuel Rosner - Deutsche Bank AG - Analyst : So through first half of 2026, there would be enough cash, but you would be opportunistic before that?

Question: Emmanuel Rosner - Deutsche Bank AG - Analyst : I think we have a couple of minutes for any questions in the room. Is there any? As I wanted to ask you about software and services. The -- it was a big part of the Rivian story during the IPO process. As to the refresh R1 software subscriptions or premium connectivity package, can you talk about the size of the opportunity? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 11, 2024 / 7:25PM, RIVN.OQ - Rivian Automotive Inc at Deutsche Bank DB Global Auto Industry Conference

Question: Emmanuel Rosner - Deutsche Bank AG - Analyst : Great. Before formally wrap it up -- we do have a question, please. Unidentified Participant Where the relationship with Amazon stands? And the commercial business overall. My sense is Amazon might have delivered or delayed taking some of their deliveries. What's their commitment to continuing to buy vehicles on the Rivian platform? How long does that carry you? And any sense of when we might hear about another commercial customer coming on with Rivian? And then, how important is that to the business model?