Rivian Automotive, Inc.

Good day, and thank you for standing by. Welcome to the Rivian third quarter 2023 earnings conference call. At this time, all participants are in listening mode. After the speaker's presentation, there will be a question and answer session. To ask the question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I'd now like to turn the conference over to your speaker today, Tim Bay, Vice President of Investor Relations. Please go ahead.

Good afternoon, and thank you for joining us for Rivian's third quarter 2023 earnings call. Before we begin, matters discussed on this call, including comments and responses to questions, reflect management's views as of today. We will also be making statements related to our business operations and financial performance that may be considered forward-looking statements under federal securities laws. Such statements involve risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties are described in our SEC filings and today's shareholder letter. During this call, we will discuss both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP financial measures is provided in our shareholder letter. Just before the call, we published our shareholder letter, which includes an overview of our progress over the recent months. I encourage you to read it for additional details around some of the items we'll cover on today's call. With that, I'll turn the call over to RJ, who will begin with a few opening remarks.

Thanks, Tim. Hello, everyone. Thanks for joining us today. During our call, I'll highlight key developments during the third quarter and provide an update on the progress we're making against our core value drivers. Importantly, I want to take this opportunity to provide some broader perspective on the EV space. There's been a lot of noise and a lot of dialogue recently around EV adoption and And I want to emphatically state just how deeply convicted we are that the entire automotive industry will be transitioning to electric over the next one to two decades. We've built and designed our business around this transition. We've designed our team structure, our technology stack, the way we approach vertical integration to not only help our business scale profitably, but to ensure we're positioned to be a leader in this generational opportunity. We believe a substantial competitive advantage is our approach to vertically integrating our in-vehicle computers, software stack, and propulsion platform, along with our efficient direct-to-consumer go-to-market strategy. R2 will benefit from investments we've made in R1 and will represent our first global platform. Additionally, Rivian's production ramp and introduction of multiple vehicle platforms in our Illinois plant has provided significant learnings in a compressed timeframe. Our team will apply this experience to our new manufacturing facility in Georgia, with the goal of achieving a considerably lower cost structure. Now, in the short term, I want to acknowledge the macroeconomic and geopolitical pressures impacting consumers and businesses, most notably the increase in interest rates. In this context, we remain laser-focused on the factors within our control, driving greater cost efficiency, continuing to ramp production, investing in differentiated technologies, continuing to enhance the Rivian customer experience, and maintaining a strong balance sheet. Our financial and operating results during the third quarter of 2023 represent progress on each of these fronts. Before I get into the third quarter's milestones and performance, I wanted to touch on an important new development which was just released. We have amended our Amazon agreement with terms and conditions which provide the opportunity to sell commercial vans to other customers, helping more companies reduce their CO2 emissions. With more than 10,000 EDVs on the road and 260 million delivered packages, we are already seeing meaningful impact from our initial rollout. We are excited to continue our work with Amazon to deliver on their initial order of 100,000 vehicles, along with a diverse set of new commercial customers. We're confident the value our vans, software, and services offerings can provide fleet customers and are in active discussions with a number of large potential fleet customers to launch pilot programs. It's important to appreciate that the sales cycle for commercial vans typically begins with lower volume pilot programs. The most recent quarter demonstrated sequential production growth, further improvement in our profitability per vehicle, introduction of the new MaxPak variant with up to 410 miles of range, rollout of multiple over-the-air updates to enhance the customer experience, and focused investment on commercial infrastructure to support our expanding fleet of vehicles. Within the plant, we continue to see progress across our production lines. We produced 16,304 vehicles during the third quarter and continue to ramp our Enduro drive unit line. As a result of this, we are raising our production guidance for the year to 54,000 total units. Later this month, we plan to take about a week of downtime for validation builds to support the incorporation of engineering design changes into the R1 platform, which will be implemented in the planned downtime in the second quarter of 2024, which we discussed in the last earnings call. These new technologies include our simplified electronic control unit topology and cost reductions across a variety of areas, including the vehicle harness, body structure, and battery pack. These technology changes represent Rivian's continued emphasis on driving greater cost efficiency. They will significantly contribute to driving towards Rivian's long-term gross margin targets. Rivian vehicles have now driven over 490 million miles, which provides us with great data and feedback on how our vehicles perform in different environments and what features can be added or enhanced to improve our customer experience. This past quarter, we pushed major over-the-air updates, which improved ride quality, enhanced the towing experience, and offered customers a new way to interact with the different drive modes. Over 90% of our customers update their software within five days of it becoming available. It's great to see this level of engagement with our software. Later this quarter, we plan to launch our leasing platform on select R1T vehicles in certain regions. We look forward to offering this as a new way for our customers to take delivery of Rivian and plan to expand the lease offering to additional regions across more vehicles as the program matures. We currently have 45 service centers along with 408 mobile service vehicles. In addition, we recently opened Rivian Spaces, our version of retail stores, in Vancouver, Seattle, Chicago, Brooklyn, Nashville, Atlanta, and Denver. Our DC fast charging network also continues to expand We currently have 57 Rivian Adventure Network charging sites. Progress continued on the development of the R2 platform, as well as preparing the future production site in Georgia. I was just there a few weeks ago. It's great to see the site starting to take form, which is the direct result of strong collaboration between the state, local community, and Rivian. It was a strong quarter as we continued to deliver on our operational and financial goals. I would like to thank our employees, customers, partners, suppliers, communities, and shareholders for their continued support of our vision. With that, I'll pass the call to Claire.