REE Automotive (REE) 26 Sep 242024 Q2 Earnings call transcript

Good day, and thank you for standing by. Welcome to the REE Automotive Q2 2024 Financial Results. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to turn the conference over to your speaker today, Keren Shemesh, REE's Chief Marketing Officer. Please go ahead.

remind today's to forward-looking may like statements. would you call that include I our strategies, goals, and statements belief, Any describing plans, forward-looking assumptions statements. expectations, are forecasts, projections, those results Please variety a in as many beyond be company's the that are reasons, such actual which control, note different statements the of from Israel. our anticipated of for ongoing by forward-looking conflict may such military principal company's XXXX, Commission, the to and Form and the with which Securities refer on prospects XX, XX-F could Please March that Exchange the and identifies business affect risks uncertainties filed our results. future

obligation publicly no assume of We as to these except forward-looking statements, law. any by required update

see Investor the to our available will measures. reconciliation measures discussing today, net those non-GAAP non-GAAP on most these our webcast addition, Listeners providing website. certain with press Please and non-GAAP and the GAAP be portion directly release to for is financial today, presentation we of results along our a including measures non-GAAP follow financial loss Relations In which of expenses. invited our or operating are comparable on

hosted is Co-Founder and Daniel call Today's Barel, by REE's CEO.

be and Officer. will Zaltsman, Business Tali Chief Miller, Chief joined Officer; Operational Tech, by our Chief We our Financial Officer; our Yaron Josh

I Daniel turn call Barel. will now over to the

Good thank day, today. you everyone, and for us joining

following of the most been have story those REE's recently have and past been you months few joined, our significant For who for the those who history. in

funding management ability to recently have I the Motherson we Today, agreement secured announced product can up production. pursued sufficient market. strategic years. believe our we our position milestones I strong. is tell heavily Thanks far chain have we our We what that ramp mass derisked our tell you underserved with Group, to supply to offering we production capital that and best for we you can achieved is also by in addressable that have

agreement is lowering continue production for and PX challenges Motherson have allow be U.S. ramp. a transformational. product U.S.-based already manufacturer as to customers as we production from Motherson to companies grow demand fleets front. products, they It for off Roush our see us With OEMs. The contract on our Group confident both We with will strategic could kicked growing line, with shareholders this that and EV face often driving other faster manufacturing, while and

X Head will Today, behind Mr. who Special President, joined Aviral we Motherson's Group Mr. Havel. of are partner Goel, by REE. the on Head from gentlemen more Projects; rationale with great and decision Rajesh and Kendall Strategy Motherson, M&A, share to

second jump first in before more strong to financials. let's discuss milestones cover But XXXX we detail, the the quarter of

Second burn quarter by XX% equivalent cash short-term XX% $XX.X quarter-over-quarter million, flow reduction net Liquidity continued Free million a inclusive of facility. credit to investments cash, $XX XX% loss year-over-year. quarter-over-quarter. and was by and comprised of with a cash narrowed

I the automotive stable scale-up with believe significant allow one supplier. and Motherson our engineering of and company strategic strong that Motherson and production working agreement would faster is manufacturing global world's and benefits. very a leading more capital

facilities XXX gross For $XX.X employees. billion with fiscal revenue Motherson operate they XX across year of achieved XXXX, countries and XXX,XXX

service market of software-defined market-leading lasting dominant growth customers the with might to force create address EV has and vehicle anticipated product, some significant supply promises and relationship scale allowing a products. strong a globally, the the us expertise chain at order brands. in Motherson manufacturing our automotive Motherson's REE's commercial electrified for with lineup Combining leading new to

support all agreement, production of will partners As will sourcing the chain and part PX REE manage operational trucks. supply of management the They strategic cash the flow faster and road accelerate costs, are meaningful would improve to expected line, the unit of REEcorner production Motherson assembly the improved unit electric risk and significantly to to improvement believe manufacturing free we costs revenue growth generation. drive which

Demand-wise.

continue to technology strong interest customers, OEMs. We our from potential see including in

repeat point. that me last Let

their technology vehicle technology, in software-defined or discussions software lines, X licensing utilize of to platforms full classes future to to potential in expand OEMs full currently are our seeking our real OEMs with We offering allowing to product x-by-wire current from all meaningfully take the and our segments. exist in offering to software

the order customer Our a Motherson. committed We that EV from grow, book to anticipate amidst our efficiencies gain and improved ownership excellent to collaboration reflecting order We strong in low products even cost demand, challenges of market. continue. provide remain offering operational continues the additional with confidence broader strong flow with total to

up XX quarter-over-quarter service locations one largest expand network continue on service in kind book North across dealer America. numbers its our order XX% To to America. and as of the our of we it, North We have is to put network now

On like. not important good would owners the globally to note simply enough. the options fleet simple. vehicle as reason demand that The quickly it commercial is electrifying vehicle not The available is electrified are as fleet front, is

owners to fleet are fit-to-purpose it's at electric major can that today a fair think for that I product say order they desperate scale.

XXX,XXX best-in-class product,but At has Motherson, only believe thanks that demand technology-led now the the myself, we sell do in electrified. Europe small units part do to Not a to that production Asia. medium-duty meet retrofitted annual products. the The U.S. REE that of that vehicles those has expertise more also large and alone we are scale experience in And of manufacturing risk market with essentially have only Currently, than product. scale, to REE the ICE repeating and units double and owners. the best fleet is of global the for is

tens per could in in Class units alone, U.S. especially easily availability, EV the production year X right to X. of the With and be ordering industry product of thousands the

network, demand. product, we required backing manufacturing right to the service are and With required the the the growing ready meet

we a As you may capital have raise. seen, last week, $XX.XX announced million

public at company a expected. we with as redemptions, know, approximately transaction, causing public less of we commence our you million time cash $XXX SPAC went underwent And than via As to we the transaction. the life in us

we adopt. strong However, since very finally continue in And today, we are that very, a position. that time, we cash feel to

We product target custom made that x-by-wire it to full we customers. for been FMVSS the are proud that certified point mass production has with best-in-class have the the designed

patient contributed us financial to Thanks to allows continued into mass support from their a to confidently Motherson fully the interests standpoint. of our the capital move forward this have long-term investors, phase as aligning with additional the ours. production seen, capital raise, you

see. me to hand that, plans to you let demand tell more our With it the Josh to over meet we growing about

to our you, at technology Thank changer and reliably with We supply our by powered production allows is agreement footprint management production to Motherson to our purchasing game all more responsibly chain that our our commitment capital. and alongside with capacity to believe working the with translates while and Daniel. stable leveraging It grow This amazing us Motherson's efficient REE improvements ramp a deliver customers. and experience. into scale demand power, quality a global bolsters

is I eyes, over are story, Motherson Group would the tell them major did hand they industry Motherson OEMs. like why then to us. partner in new to relationships and those to For to about you the Avirall automotive from with their it that long-standing to a with global supplier And with more

value Motherson path proposition breaking well users. Thanks, have the been the module-based by impressed and as as architecture CRA Josh. makers both highly end truck it at represents for We,

and REE's drive through beneficial manufacturing top-tier commercialization capabilities supply goal to leveraging mutually progress engineering our is commercial a to by support and expertly and industrialization technological Our growth and chain framework. managing its

aim chain. we support by enhance the to value into Additionally, REE's customer ecosystem providing across automotive integration exceptional the

contribute Motherson's Our believe participation in the to the to partnership per strategic our financing exciting diversification technology. commitment will of underscores content strategy We further round increasing support this vehicle. and

Over to you.

we have that to the the most [indiscernible]. market, Thank growing the product on demands within believe you, meet well the We positioned compelling consumer segment.

customers better the ramp-up we start their supply phases of production chain they electric with our commercial Now network through vast support Motherson's as of fleets. build profesionals can and

support are know efficient economics. innovative future and produce how up efficiencies supply [indiscernible] will maintaining this DNA improving freeing technological expertise. to where reducing be customers. grow ability unit scale they be an production backbone, more chain, and for while resources will development product in to drive while able important becoming as Motherson With company nationwide looking manufacturing sustainably to production enhancements technology We REE on risks, at our and to the our areas are throughout We have the especially provide

with supported few technology This leading assurance, quarter integration agreement months. global a production U.S. preparing We our be REE will our as and more of in a testing. effort for to to center. re manufacture Coventry quality team been our joint operating We continue by REE product vehicle proprietary is will with off responsible kicked logistics Motherson second lineup contract signed the than and over corner PX our Roush past development across during countries. manufacturer production the have and Roush supplier for assembly. full XX Roush start

production Motherson production secured renewed significant the efficiencies, are the Now execution addressing in at strategic with to of and order plan savings we for collaboration XXXX. and we the utilize that the production And in Roush, agreement on to while updating the expected kickoff deliveries our and strong capitalize customer see capabilities enable. to is start have to to we pull our required our with capital Motherson

the includes to it expect very take recent Motherson's our a which will input. As result of production important of time a we plan, with signing Motherson, some develop agreement

about in believe benefit expected revenue the Tali? our to cash of meaningful you coupled Tali finalization generation. and plan, larger more the it road let fall and With over the and Following ability will product to our flow improved orders from fleets achievements. production we that, accelerate free costs will address business to the And OEMs. unit with revised revised plan production hand to the tell me

demand fleets We RE The see grow. for demand electric software-defined strong to from OEMs. vehicles Josh. you, both Thank interest continues and and

book and service for and electric authorized is commercial valued network, continues seek pure $XX Our a strength sales REE's dealer to of XX% nationwide North today covering XX America's points. our at service is order approximately fleet This million. grow, increased who vehicles now key support. and largest by customers one quarter-over-quarter

positive demo from deliver the REEcorner business with strong U.S. continues we continue new show program X across receive to The trucks our to OEM to OEMs strong PX-C our feedback joining demo customer line dealers as potential program. to continue our We more

that technology and although OEMs interested in technology. and We bring to adopting We in interest this across potential making and long-cycle Intel is our EV software-defined categories new for the the classes, business, traditional software-defined believe to it technology REE our our it to access gaining Inside a thus has vehicle continue by automotive. growing corners see

production current factors As according one are Josh customers production our such, commitment. limited, of the as are to we updating with prioritize deliveries. are several new orders slots our Naturally, to working and significant follow-on secure which for production and our slots mentioned, we And plan. we is

to trucks upfitters U-Haul Wabash demo great the During to we the solution are now support a delivered our from expanded electrification customers first a have Penske the trucks and received others, collaborations quarter, full [ U-Haul piece potential such of with upgraded evaluating the with body. it the These received platform, Wabash amongst and fleet. Penske as EV as by completed XX-foot powered and who ], DuraPlate feedback an its first and and is the of S body with first

positive. U-Haul is in we The portion delivery was fleet. leading an PX-S Strip electric designed solution the significant The very of collaboration truck that software-defined And parcel unveiled feedback newly excellent the fleet. is PX-S, Chassis a a for from a believe with U-Haul

traffic the in enable to they this a platforms to the designed safety France runways on platform to improves of and and in further X-year is see a the its REE's flat optimate Airbus management This with fully is year aviation, technology project. future PX-S Airbus come. of According Airbus, on to with more autonomous full ever in project as expect with tested within part The ground flight X core. airport technology AXXX drive

to granted fulfilling Well, and to a requirements were end, states the awarded government will announced by National well government the July electric re software-defined the quarter to education be purchase contract. access Fleet XX of through agency Group XX,XXX a through the dedicated by bidding in all over Subsequent that available and to behalf we trucks process procurement As streamlining of XXXX, source government education in PX-C Source entities Auto contract X-year on U.S. their entities members. to its

we've progress side. you can As demand on see, made strong the

for technology OEMs products has very needs. from electric I both value and as waiting believe continue more our than better, to our and customers their the to for be efficient the We differentiated safer appreciate brings to market combustion trucks. engine trucks been fleets

recognize powered made need electric to this The battery trucks serve exact and are that. customers

best the receives to secure our We manufacturers. they pathway electric possible fleets. by ensure are technology the to of very fleet our production level software-defined customers from leading working slots interest I'm to with have auto meaningful build encouraged

over would to to I hand Yaron? to talk like about that, With Yaron financials.

very to Thank while collaboration funding which our us Motherson U.S. start year to will secured cutting start core, to necessary across and believe to concentrate I'm This XXXX share I customers will I'm you, we technology and and to production as Tali. the with accelerate cost have our on to the for it allow world reduce us cost. America allow grow that in is our very delivering North to off we proud our happy of to vehicles our driving kick production. scale. results teams growth product offering. our in

second our financials. into quarter dive us let that, With

of with $XX.X facility. inclusive in a $XX stated earlier, capital [indiscernible] and credit ] our investments, We position [ quarter As is million the short-term million cash strong. ended working

burn flow Free decrease burn well cash reduction did XX% as to loss the narrowed a XX% year-over-year. Net million, quarter-over-quarter second net in reduction with and cash quarter quarter-over-quarter XX% decrease as XX% Our narrowed continue a a to and year-over-year. loss. decrease $XX.X our

Non-GAAP to of XX million, Last a quarter-over-quarter offering year-over-year. XX% week, $XX.X release. tables the loss in been has to earnings provided ordinary decreased our $XX press about reconsolidation statement non-GAAP measurement prefunded million shares in second decrease GAAP XX% of warrants. direct financial purchase in million registered completed or we by included for the net quarter the a

of off with We basis. Motherson outstanding. now $XX invested shareholder, capital led fully further M&G need hold XX% XX% believe the without the they with and million approximately our is investment production hold and now a investments for funding our and reshare long-term that diluted position a on kick million, $XX the we funding. run, need financing supportive strong have recent the to we

There us we know operational we than expect as kick our cut with be the we soon. finally be activities taking work are margin share able Motherson, lot when are We we major include previously our announced. number, will into we production and production will always that We we said off REE. are to positive providing Once cash and the will not faster we ready. will Motherson, new on for with any deeper now we ever merge a financing will going for to on to plan guidance flow, path And updated positive we which plan only our risk. out is

I will turn now to call Daniel. the

Thank you, Yaron.

an the of you can market we As this is probably massive of customers collaboration tell from options. strategic prospects Motherson realistically It's REE's for limited tone alternative call, announcement represent to the into ability have a our news know very scale transformational future and where development. what with absolutely opportunity big recent REE's

been for this from position stable financial Motherson We that they fleet be from inflection have customers, positive benefit our new The our capital REE major can mature a lineup owners including and at also strengthened in and electrified core point be In long-term and or of itself. scale. serviced combination, with capable investors, competencies of will product the significantly need Motherson produced a OEMs. marks combination business. They've

already have customers started we slots are updating fact, the our secure with production we to discussion In production currently plan. and key

We will this progress. as update on things you

vehicle full sold anticipate market. Looking the different that ahead, REEcorners, the PX. and REEplatform REE the X such ways technology be will integrated and into we to as

stable long-term avenues. will with build to We reliable, across all work and Motherson a X plan production

delivery We and to we production Motherson our our flows quantity. improve production ramp capabilities will leverage expertise lower cash and as and costs

working Motherson to our to should Motherson secures opening and also other raise, trust by also the capital to M&G long-term Board and for look our I investors U.S. our our that continued recent to of rest of grateful Directors. production I'm to need their capital Before I'm patients. start investment which I mention Q&A, to additional contribution and encouraged support, forward

talented today. as this group to Lastly, us our as the for entire Motherson the also this success. thank behind on always, are team like factor I call very would I and would dedication devotion joining their Rajesh and to from [indiscernible] for of true like professionals thank

the for Operator, open up please line questions.

Partners. The Instructions] from from of the questions line [Operator Craig Capital ROTH Irwin come

deal And congratulations of the trucking from Motherson. EV news the investment for was big industry, confidence there big actually strategic the vote considering for and the a

So we manufacturing maybe I contract Rouse wanted the a about could agreement. bit to ask talk if little

the You for process? day certify maybe Can did number hope Roush the months. build mention for frame qualify them U.S. in you're out the that production. a mean have vehicles preparing the get next of are you maybe release the you there or kicked for and would that delivery you trucks to those with and you off or how capacity with that number Does the that us and would customer over process U.S. your to interaction build then the that of vehicles started

Daniel. question. you Sure, to want is the start? Maybe, Craig. This Thank you for Josh, do

I I'm Yes, that. can take great.

as we preparing back the we them we been So and with in and a kicked year, for in for noted, started the quite contract while, them actually right. with way QX, earlier back actual off moment working Roush, this we've

operations helping the it's production us, vehicle vehicle right in us scale is collaboration vehicle to But Rouse assembly certified sitting Now the our role North a will joint super time of the of REE critical play contract the and we've already. it. manufacturing relates bring right? our with Basically, that that America exact for the will and build to it full Roush of as know by-revehicle. an announce So team, power through really around for copy fruition we

really they're doing keep a how our what certification manufacturer, right? building we've spec, mind, as contra to they're handles, done. already So the that's in So

then 'XX. production first deliver going we're -- start noted, vehicles the we we we in will as and start to QX, And in

the phase, we're the of in year of preparatory now, before end Felt course, through up start So next year. that and ramp the then, right

Understood. Understood.

a my is know job down. So bit structure. right? the some you company you've I cash done a there second bringing of to got the burn, overall is So have about sometimes expenses painful, leaner question tightening belt much but guys fantastic a the little

back? we you manufacturing agreement the faster the be there your As in that need Motherson comments this prepared progress to to be the look expenses much is deliveries obviously, of might can at incremental conversation customers' added in and way to of the started profitability in part 'XX, getting at Roush? about with Or

Sure.

think you? question. Yaron I very good is why a don't this

and not going in to more Actually, the going cash going done. R&D go burn get up. the the position as was SG&A our down the And course, said, getting up expense is U.S. need burn slightly to R&D in we in it's to So the increase quarters, always more our go down R&D, or cash And future. down we've because less is more it's was to because of major now in and the grow the should following

But be not in cash to increasing is man. going total, there the

what thing, No. to the we and forward. not necessarily Maybe the this we that as spending would This we spending, I'll be just us we And might and necessary significantly is free of that say lot the will forward. will move collaboration Motherson are this us is there's we believe going thought but why because lower but Motherson need to revised to not and to thought need to move Roush scale, cash spend, a production it flow as we add profitability with the both expand to that contract faster we expenses helps to only is manufacturer future, for to reevaluating I'll with drive now I hence collaboration that it or cost Roush already plan. just -- that, with is do that in to so gets transformational we not we'll be think us we're

that the the probably My XXXX. Can take are for customers you REE. to be front a Are could potential have from that question, likely marquee last talked bit investment certain might And that a to both be deliveries the are hoping select of your be and able right? solidified? will Excellent. commitments of level enthusiastic line longer-term more delivery that allow little customers of I've in interesting I lot maybe these talk So of customer to units about Street how you adoption. made there for out you Wall for characteristics customers flesh us? guess, I right Or for was it's are customers base, to that or

Of course.

And demand First we of we of to the course, indexes which order agree. prioritize size, your there price, to for all, growing matrix orders. at demand look at, readiness of you And clear fleet them that I electrification And altogether to can slots. customers. a that of point, other We see out vehicles have decision a Amongst we we tend the future very find potential. multiple for and that for lot and the powered-by-REE production in the order end. course, score, prioritize weigh to even we score according a

I a light Tali Talii? U.S. bit little customers in shed a on can few now think actually more maybe visiting the can

see we growing we of maybe definitely, Yes, prioritize you. first Thank is, sure. The that. to demand. we way again, allocate demand, we all, Yes, have, see

working also their that have needs. the plan and a goals prioritization XXXX, potential in production the fit size, have working by Now with and and to price for with the that we dealers we fleet clear place

the Wainright. from HC come from And Amit questions the Dayal of line

recently different potentially? milestones a last earnings give I these these that same kind you Are know respect and on Congrats of With what on mentioned U-Haul all you more -- important highlighted in the you bit OEMs, these what you are customers these X little versus the can to strategic customers? Daniel, previously? customers Penske you the accomplished. Have call. color

the complete, talking compete. it same always not when OEMs, remember, When always we what we -- not And does is REE about said these so Thanks. customers. course, Yes. no, of are we're that

wire, automotive access of such So work to a allow with we software-defined leading giving see vehicles. when building technology demand And in us our have And not software-defined our other to OEMs them OEMs interested we by them I technology. lot manufacturers in and us, ability up building more of important It's and they one, fund are interested because, why the in is sort software. company. capable licensing which opportunity and very, important? also more technology of open general it software them, trucks. then second, for own to we revenue, other an the say significant is demand as car for their the to And And trucks margin-wise very and are technology, our interested other allows it scale-wise. are especially us for They're in for interesting, growing and us, than from

that? the commercial It's are opens be because our is that X. to vehicles software necessarily Why it not in up Class the implemented opportunity not in to for only are and current only X necessarily

both -- So classes, looking manufacturers think we're out talking of and if to most to in in commercial higher lower general, not the at commercial there And vehicles. get car market trying we I at the look and the world. auto software-defined access you manufacturer can and been have about

Understood.

software, don't types on other question OEMs these to who are into REEcorner? buy they of or that your customers follow-up my have looking is So the

be of to which the the capabilities the to full believe And leverage scale, Motherson's make on with They vehicle basically as be parts at to is different also naturally we way it's When better and, for better several concentrate and buy at can together to production course, But super better we be OEMs. them it, And a own on that more -- it on We will their REE OEMs chassis, it own REEcorners end drive those way bodies best can with it. see to of of be class for is set put done itself understand day, will the we'll able the REEcorners. important to to by Motherson, supply look be mechanical we do going fronts. efficiencies. sure happy produce economics we production than their the just able is at REEcorners, then the different and software. scale, and

play still purchase expecting. vehicles? on the were Are place Understood. REE in incentives that in that Okay. were they front? you who for that These customers -- Any regulatory the changes

it question? I well. Could you please repeat hear the couldn't sorry.

So if for to incentives trucks, customers see can Any the place? enjoy still are in purchasing still they these offerings? purchase Just changes electric regulatory when those to incentives these those that?

I contrary. mean can but seen a Tali the I we can say in we that before -- does, incentives I that, can answer I change she think -- think Yes. I on haven't

in the that more that? we quarter, can incentives. added provides share Tali, think on you actually state another I some

sure. Sure, Yes.

So on the There don't and incentive incentives level level. we a U.S. about see side, on both be continues now. major talking difference. We're state to federal

that Specifically, see and also are Massachusetts. eligible there of announced But for course, we definitely are states, we now we other interesting, this as too.

Understood.

delivery, not Just one corners, -- your are orders are book right? this $XX vehicle order vehicles, just me. for last full one for The million full These for right? all in is the the these but for orders

Yes.

very actually a good question. So that's

$XX lines, is product corners. -- So order full remember, X chances chassis. The $XX full for different vehicles value million and million approximately vehicles have book we and

Instructions] Cowen. the questions from TD Jeff the from come Osborne line And [Operator of

-- the I couple process a just wanted of the Daniel, quick questions flow. to on understand

chassis the and full making Roush as doing there Roush as to corners So making Roush is the the made be Will that's will then be obviously, making is Coventry. doing. in and skateboard Or in vehicles? be you well what you'll by you're actually corners Coventry just actually confusing

is the Josh, the rest coverage double Roush. want But Yes, with corners All deeper? to are U.K. little bit maybe you in a in do

Yes. to gain. Jeff, Yes. hear good

like all our we to to -- we're Coventry our IP So keep want our core -- is us. again, -- to again, going with

going the vehicle truck, equipment make So to compelling locally going we'll everything we We're source do right? the then that to there, invest heavy manufacture again, our model. to design, REE source is else, is going corner right? our normal That's everything we're -- the So our in our -- like not we're what to chassis. again, is

We'll will manufacturers So that chain. the current for made Motherson chain. us chassis want again, down to U.S. together, impact. will manufacture we A logistics, cabin parts Again, bring we'll putting localize that's suppliers with to qualification Motherson back then course, We'll do cost. our okay? we'll have U.S. entire management us with local to in be Roush. us, the Again, and we has specifications. chassis a by of lot the be the we'll over. supply hand, the and take vehicle at that We of or have the quality locally supply we Roush. in the able suppliers vehicle as Motherson the huge localize bring to is what's the together hand with do the handle quality is the And key distribution within well, then shakedown, at Roush people again, and together with the

on Jeff, I think to for in you're a like view it's company important in that Just touching be is my to to locations that mention manufacture on important able point to us very add multiple world partnership that, that the strengths to and -- key manage that a of Motherson. are logistics is through from I big with the challenge. supply And we chain everything think this around this one enabled now a is

So maybe , how global chain group, on -- logistics, as we can share bit see [indiscernible] to do little add the bit color more more now you Rajesh and a supply that. maybe joint a about little or a

question. the Okay. Thanks, you for Thank Daniel.

plastic including parts, of entire including supply et do which the Motherson's by chain. including partnership lighting, et components is mentioned cetera. management, multiple help ourselves global in the bring lot cetera, sourcing managing of brings as aid the Daniel expertise because globally, to the and The we So, by a and includes including chain meters, was is value during supply that josh, to announcement obviously it manufacturing and harnesses,

Motherson contribute at components competitively the of REE. helps can competitiveness the definitely So

this don't that bumper we on and organization. what granting components module away that a a I of and away in ourselves is like other or terms to management and because because partnership. do of think able cost bring have expertise, et And by manufacturers significantly source both sourcing bandwidth REE in of efficiencies, we bandwidth a that, fairly will to cetera, our also to module terms all being the that of components other And high management to in we modules the I them of nature. ability workload process Motherson the Second are that of we is, taking IP large lot think terms to with is that module, the taking bring source from

other questions, helpful. Two quick That's Josh.

to Roush Would QX, are I of you type demo be units that can wouldn't and mentioned that you year? any just second comments of half revenue. us next vehicles those for expect deliver was as attributed those or QX production give think currently. revenue have to but assume in when I -- for you in in you to

Yes.

things QX. we it them, said, paring So start we've end start been for and didn't will year, infrastructure obviously and plan with next like start getting production the we I are to of then year. together before so We say production

that with So process just as we've updating of the Again, far as little a the in bit this as noted signed production call, Motherson production now. and we plan throughout plan. ago, we're

to fall will we agent and start -- plan. larger fleets orders So and again, we final revised believe the the really in in the benefit ability OEMs. to QX following revised revenue our and deliveries of plan expect 'XX address then production from We this

So like to optimize thing. the But this it hugely sure. a in to yes, we're we to beneficial going And deliveries work 'XX best. is feel for

if were share And facility from is Michigan capacity it. you a as Got it can hypothetically? then the fully Roush, utilized what maximum

up we 'XX, we've ships. single plan the years plant couple over on So next we'll the 'XX, the done weeks. on together 'XX, next the But X of over et vehicles X,XXX production cetera, scale be to plan that again, is them couple way of could putting for a what, with is

Got update volume what in you've cost and think call, on then breakeven the EBITDA that on the levels is, it. plan us you potential could are, new past? based and Last the shared the what savings next gross by margin question. Do production you

moment hard week, to I today. we're literally, think, a you, working by Remember, of update I we think, really God, everybody. customers, from but us Yes. bit the take partnership and our have a a excited announced the will -- it it, are last we update a bit we we'll update we really, And longer, week take just we'll plan. will longer. It this little plan. very And little course, us, very,

the secure for And that build beneficial said, already our plan for be started to work and it's to very new I with REE. customers production Tali new their have slot As believe plan. we going to

Thank you.

for We have to Barel closing will questions this hand at back further remarks. no now time. Daniel I

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