The Ledger, every show

“That's not only enough capital to launch R two and normal, but it's enough capital to launch our second R two plant in Georgia and take us through positive free cashflow.”

“It's the companies that do this well will exist. The companies that don't do this well, like, I feel really strong on this. They will not exist. They will shrink to nothing. They'll asymptotically approach, you know, zero.”

“Like, for example, a Cybertruck would not, could not work in Europe.”

“A lot of the solutions that are more one dot O based and are sort of stuck in that framework, I think have a, like a truly a zero percent chance of progressing to be competitive with a neural net based approach.”

“I mean, I think by 2030, it'll be It's inconceivable to buy a car and not expect it to drive itself.”

“Interestingly, in California and the state of Washington, we have the best-selling SUV, electric or not electric, in California and the state of Washington.”

“Or in this, the next five years, we're going to see autonomy features where the idea of like hands-free or hands-free eyes off go from being something that a very small percentage of customers are looking for or using to something that's essentially expected.”

“And so, with the exception of two companies, Rivian and Tesla, every car on the road has, depending on the amount of content, anywhere from 50 to maybe a 150 little computers that run the car.”

“That must come, and if it doesn't, sort of like if manufacturers don't make that change, they're just going to lose market share, and the ones that do have that technology are going to gain a lot of market share in the next 10 years.”

“Vehicle sales, let's say that comfortably sitting it when we get to the right steady state, the 20 to 25% gross margin.”

“What's driven the cost down is that you have the compounding benefits of much lower cost of capital across not just this, the manufacturer, the vehicle manufacturer, but across their whole supply chain. So tier one, tier two, tier three, everyone's cost of cap…”

“If There's zero trade friction between, let's say, a country and China. More production in the fullness of time will shift to China because of those advantages. The lower cost of labor, the lower cost of capital.”

“I do think nuclear is gonna play a role, and you joked about it, but with the growth of AI and the energy needs for that, there's going to be, I think, reinvestment in that technology.”

“So call it the next 15 to 20 years, we'll see the fleet of vehicles in the world Essentially shift almost entirely towards electric, but you know, within, I'd say, 25 years, it would be fairly rare to see a gasoline powered car on the road. It would be like se…”

“We did a 5.8 billion dollar software licensing deal with the second largest car company in the world with Volkswagen Group.”

“The first product launches next year. It's a product for Europe. It'll be the lowest cost EV in Europe. It's going to be very cool. It's called the ID one VW ID one.”

“If you take in the premium segment, in the flagship space, we have an SUV, our R one S and it's by a pretty significant degree. It's this best selling premium electric SUV in the country. And so you know, it's significantly outsold the Model X. It outsells eve…”

“With the exception of Tesla and Rivian, every car on the road has what is called a domain-based architecture.”

“The R one S is the best selling premium electric SUV in the country. So that's electric SUV is over 70,000 dollars. And where the best selling premiums should be electric or non-electric in the state of California. So it sells really well. You know, it outsell…”

“And so finally end of 24, beginning of 25, we started to hit positive gross margin. So, Q-four of 24, Q-one of 25, positive gross margin.”

“So that's now in the car and it, the slope of the curve in terms of progress and additional features is going to be really steep. Your gen one won't have that. Gen two's will.”

“If you draw the boundary diagram around electric premium vehicles, so like premium SUVs that are over 70,000 dollars, we're by far the best-selling vehicle in that class of vehicles, so we have about 35% market share as we draw that boundary diagram”

“Six, seven years ago a LiDAR was 20,000 dollars. 15 years ago LiDAR was 75,000 dollars. Today a LiDAR is like 200 bucks. So it's a very low cost sensor.”

“With the exception of us and Tesla, every manufacturer today sells through distributors, and distributors then on to dealers, or in a few cases, direct to dealers. But nonetheless, there's a middle layer.”

“For every, every car that's sold, whatever its sale price is, the revenue over the life of the vehicle is generally around two to two and a half x the initial sale price. But that's over a 15 year time.”

“In the long term you know, car companies that back off their electrification strategies are going to find them, find themselves in a really challenged position as it gets out to 20, 30 and beyond where the pure play folks like us or Tesla, Have had no other ch…”

“The R one S is actually the best selling premium SUV in the state of California, not the best selling premium electric SUV, the best selling premium SUV period in California across the whole U S it's the best selling premium electric vehicle.”

“If you're driving a Porsche or an Audi a few years from now, it will have Rivian computers in it. And those Rivian computers will be running Rivian software, but the way it drives the, what it looks like on the screen, internal combustion versus electric. Yeah…”

“We've negotiated more than 20% savings just between Q one and Q four of this year out of our bill of materials.”

“I would say unequivocally, the recycling rate on lithium-ion batteries will be You're very near a hundred percent, 99.9%, maybe 99.99%.”

“I don't think we're going to end up in a world where there's one or two electric vehicles that we produce. 70, eighty million of a year that the whole world buys exactly those two or three products. I think the world needs, you know, lots of products, hundreds…”

“So the plant, the lines are running at essentially 25 to 30 hours a week. Because we don't have enough parts.”

“We say we've got about 13,000 employees. A lot of our employees formerly worked at Tesla, so probably like five, 600.”

“That product Requires, we estimate on the order of about forty million different decisions to bring it to life. Forty million. Forty million. And there's millions of hours of engineering time necessary delivered. So the only way for this to work is you have to…”

“I do think there is the potential of having less car companies in the future than we have today. Because of some of the technology shifts that are happening, but I do think there's gonna be Certainly more than five large automotive players in the Western world…”

“Radars are extremely cheap. LiDars are now, you know, very, very cheap. But the really expensive part of the system is actually the onboard inference. And so that's like an order imagine more expensive than any of the perception stack.”

“In, like, 2013, 20 14, I would go meet with suppliers, you know, and CEOs of very large suppliers and say, we're working on an electric SUV and electric truck as a flagship product. Following that, we want to launch more affordable electric SUVs. And the lack …”

“We also uniquely in the United States there's no other developed country that has this where we have unbelted tests.”

“I think first is I'd say there's alignment amongst Rivian, Tesla, Waymo around the use of AI to train. And so the view that you're building a large scale foundation model, multi-billion parameter model, you're building that with the data flywheel of the vehicl…”

“You know, they have fifty-ish percent market share, because they have two great products. The Model Three and Model Y are great products.”

“So we have 55 megapixels of cameras on our vehicle. It's the largest number of megapixels on in outside of China.”

“And it's much cheaper because you cut out 90, 95% of the computers in the car, you have a much smaller number of more powerful computers and they do a lot of things. And so that's what we've that's what we built.”

“Tesla's a great example of this. One of the big tailwinds they have is they have a great, highly profitable service arm.”

“Well, in the case of R-one, you know, today the product is not gross margin positive. So today is in like middle of Q-four, 20, 23.”

“And so around 80% of our customers have never before owned an EV, which is awesome.”

“The change is going to be larger over the next two decades than what we saw in the first two decades of the auto industry, you know, the sort of the shift from a horse to a car, as we now think about going from a combustion powered non-connected vehicle, which…”

“So people who've previously owned a pickup truck represent just over 10% of our customers, meaning 90% have never owned a pickup before, which is awesome.”

“And again, we now have data on this where less than 20% of our customers have owned EVs before, meaning more than 80% have ever owned an EV.”