Rivian Automotive (RIVN) 8 Aug 232023 Q2 Earnings call transcript

Good day and thank you for standing by. Welcome to Rivian's Second Quarter 2023 Earnings Conference Call. At this time all participants are in a listen-only mode. After the speakers' presentation there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

to of conference Relations. Strategic like Bei, to now President Vice Financial would hand over the Tim I and Investor go ahead. Please

second Good us you thank quarter Rivian's afternoon call. XXXX for earnings and for joining

begin to reflect responses we comments today. as questions matters call, management's this Before including on and of views discussed

uncertainties may actual statements Such statements forward-looking under shareholder to securities laws. We making our These uncertainties operations considered related will risks also cause and letter. our are be business involve that risks differ materially. described and statements to today's results SEC be financial could performance that and and filings federal in

this GAAP letter. During non-GAAP of to and non-GAAP GAAP financial provided discuss we shareholder call, measures both our reconciliation financial measures. A is will in

our you call. to of it around call, which progress the cover before letter, items our of details today's we includes read encourage the overview Just recent I we'll some over published shareholder for additional months. an the on

the RJ, With I'll few who over remarks. a with turn opening that, begin will call to

everyone Hello Tim. and joining us thanks today. for Thanks,

is Production during to I we're against developments update drivers. highlight core key on quarter into translating making and second profitability capital our call, efficiency. value provide During the and which will progress ramp, improved the our an continues

experience. the important we We as footprint improve steps mobile design RX experience into through physical, our product are took focused updates, charging We the reductions dual our quarter also customer engineering in-house line. during driving commercial to digital including motor and and material cost our of the integration expand on the and remain

leaders and our for customers, join I'd with us quarter. Claire like last vision. partners, earnings I inviting their quarter's continued each Importantly, prior suppliers, thank to details, different of be to our will getting Consistent and call, to our support the employees, shareholders communities into

the ever our enabling For critical improving our the of Software and President and capabilities plays our role to in software this expanding Wassym I've of Vice features asked join business call, vehicles. Senior Bensaid, Development given and

represents second a the During which the to compared vehicles, quarter. increase first XX% XX,XXX quarter, we produced

Importantly, represents during RXS the produced units approximately higher production. RXT second vehicles. time This RXS quarterly XX% of quarter production than the were was RX first the

progress of maturing Irvine the process the first to in point RXT. has the the the the is to during RXS year, RXS profitable half of It's than the essentially important made the team strong more is where also manufacturing build efficiency note the equal Our RXT. to

half quarter, vans the RX our our launch Motor enabler successful of a the during quarter. important we'll be ramp first we production is in-house year, for Building vehicles. instrumental also units. we guidance near-term in are during last our increasing from an milestone progress Enduro remains line motor of motor key Due performance. in-house This Enduro the platform successfully into the to the dual the Motors XX,XXX The on the opportunity variant to for of production integrated cost the total consumer our market to of commercial RX XXXX this a second and expanding perspective

pricing our variants miles mph XXX high and variants reach to foot torque and X range, at of as come of road XX,XXX providing to extend believe on long-term while majority RX great the as XX will dual-motor variants. torque of We generate XXX horsepower. quick These offer believe X.X up that seconds, performance. XXX off dual-motor and over pounds value We pounds the have demand in to from $XX,XXX, over just starts

And integrating vehicle attributes, so the sheet way feels design, RX the with clean The thousands with features, special. different we've this really that of has we line taken about technology technology pieces differentiated between of content, think product making product, we is the the and and approach way enabled thousands the design. uniquely the we're about the result think of the tradeoffs the way

handshake is world. of It's was and line our with the intended flagship product the course RX And our product.

position have And point so as then form lower a lot those course integrate that the created of as we've we've of of into mindset same does a brand RX about price the company. and and mosaic view applied touch course ethos is in that a product for same, we that been thinking a now same across point. other And a of smaller how all points that being factor

Rivian price forward a we all segment smaller in different great It ethos about lower factor, be couldn't early with time our the lot a to into sort what's looking that RX a space, more a closely large XXXX. such the about same form and RX to showing ideology market. come part trade-offs of these addressable really with RX I really much brand manifest in does the and teams spent and having and possibly and stretches way point more coordinating this with And at say thinking product segment, our our how excited a and further a of takes represents of rethought such rethought even can that

quarter-over-quarter meaningful second which reduction both the labor, Now by XX%, our unit profit consistent focus across RX core vehicle components, accelerate basis, gross collaboration delivered logistics. per building. part levels all cost by about costs reflect our quarter of we continued of reductions our costs, as improved and and is extreme across culture overhead, key our including drive material achieved efforts company profitability. and a the on EDV We through Maintaining efficiency towards the manufacturing, cost in On we're while vehicles $XX,XXX. results, focus to on vehicle a grew

this to to When making which and with we're designing we change some our want safety, electric innovation, I a set the technology driver highlight from comfort. progress of to partnership offers Amazon. van, take develop opportunity van of delivery also delivery a the in course, step out

United in early States. July, cities in of EDVs operation the XXX As across there are over

in on ramping efficiencies, and creating an focused experience. remained and cost of we driving future strong recently technologies production, initiated Europe. Amazon addition, quarter was developing In EDVs customer we to a amazing deliveries It

software discuss strategy. call our I'll Wassym that, to development With pass to the

good to capabilities our software pervasive are the Thank vehicle in customer progress experience, over be aspects is making. what is the obvious updates software our experience of air Rivian you, RJ. to The facing discuss we company. here see and and our and their mobile throughout through The impact the of software It's most customers and digital app. the

our priority features, through customers range to points enhance pain from customers customer may the addressing modes, or experience. that's experience, take that comfort here dry other Our and whether is feedback efficiency

filled Officer have customers Since XX with fall been our I here we given to such customers to Cam, as with our Birds Chief enhance on pushed all Snow have View, Camp experience. Rivian Bed Mode, own subreddit. interaction more, Drive updates the vehicles. actually Camera Over called been Eye our updates much software These my designed Mode Mode, in launching the platform Reddit features XXXX, have major the and of

to road our with us way. the It of planner, fast-charging along the And give routing map is charging the Adventure charging This we selection Most data we help a our to provides exciting. Rivian included ability expect stops route better have improve equally meaningfully compare the recently and customers site to our this integration will which customers network. of also plan the experience. and technology

including will range much towing next stations months views, camera profiles, update see share app. us want to over don't I the and doing discovery the launch a mode yet, you charge but and estimation trader too While adaptive navigation

and differentiator computer camera a also vision only powered increase an structural provide grow launch augmented electric reality our drone continue that will are believe that in immersive mode, plan by in experience software We as to vehicles our which importance technologies. We will to complexity. capabilities

that decided single in RXT, control stack ago, and the truly product with code approach made us architectures, rapidly vehicle. support take and intentional across to high to to a designed clean the scale level decisions the own we software vehicle. the three reuse software every electrical Our to What variants RXS we hardware unique hardware from We to and our capabilities when stem EDV. the means the allowing this in software stack stack we of years sheet multiple computer nearly is

migration us will electrical us levels a material zonal and approach allow cost platform also rapid gen next is integration our modular savings which system significant of achieve increased This consolidation. enabling to brings to architecture, hardware to thanks prepare the to

the software at supports on the foundational. is behind functions and scenes company. equally What my of does is It I work important. The Rivian the earlier, described just mentioned optimizes our side work. throughout consumer As team was I facing

connected architecture reduce us products enabling to provide to our data our the safety Our that software us and and powerful gather of improve insights, reliability costs. sophisticated service allows

advance. assess and customers service well perform that teams in experiencing to diagnostics It may allows our the be issues remote

line our improves on the ultimately and issue line diagnostics during the vehicles. manufacturing automatically even us platform This detect to quality deploy checks to through in when determine to plant This allows assembly over-the-air through quality, vehicles, parts efficiency in-house have that software. the the as operations and cases in can service to we the vehicle moves exhaustive some our issues powers and what perform potential in us manufacturing electrical saves So time, us allowing mobile bring, improves fix also process.

even industry the work we a you the do challenge work views encouraged excited We're about not to and impact get have we're and often It's are we the having. come. more by to that an As about how we excited done team, the redefine what's software.

With that, turn to Claire. over let me the call

Thanks Wassym.

delivered our earlier the results plan strong progress quarter operating team the this Second against reflect year. outlined we

we cost value future improving building drivers driving As remain ramping technologies the mentioned, efficiencies, our focused long-term of the experience. business, customer RJ production, on for and

which generated. results, $XX our quarter delivered to revenue for $X.X of and the of vehicles, proceeds million the vehicles XX,XXX from sale primary billion produced revenue the quarter included driver was the of we credits. Turning of regulatory we second Total XX,XXX

but to We time, expect of quarter. quarter regulatory credits increase over sale vary the to to

over quarter, and vehicle $XX,XXX per profit quarter include downs and on commitments, first firm fixed growth second the margin points. revenue primary in delivered. approximately The by XXXX, we inventory the purchase cost write drivers basis as a of gross to of losses representing leverage, LCNRV increased improved cost per material improvement reduction compared change our XXXX the During vehicle

seeing Now quarter a with introduction we pack are of the going production after full unit, of drivers, deeper Drive now Enduro LFP a the material and reduction in-house XX% our EDV into as the material reduction cost battery costs a and for continue to commercial compared cost seen progress short-term down see in QX on our premiums. and reduction Concurrently, XXXX. strong to reduction vans material our we've in through efforts RX cost

million lower gross quarter to compared the for negative period Total million negative second to in period billion expenses primary to of compensation compared expenses related was operating XXXX $X as The the last year. stock of the operating based million to the fell in profit $XXX same in as in driver Total same levels $XXX of expense. last the reduction $XXX was quarter year.

in-vehicle continue our despite experience. customer the to operating rationalize We in expenses technologies investments core and significant

and parts past distribution and year, expanded our more. so capacity, launched the service developed we've center expanded built our our network, Rivian a physical mobile demo a Adventure offerings, drive Over new platform, and much motor and center remanufacturing increased

was million lowering our All of efficiently done expenses. forward enable million which operating grows. $XX as position of that These $XXX while by scale quarterly and expenses park to to our cash direct-to-customer investments car this capitalize our on relationship are of us all us consisted

ended with investments. our XXXX We in the EBITDA billion cash, adjusted of $XXX in of short-term cash and as resulted improvements rationalization $XX.X compared improvement profit equivalents expense million coupled with in quarter second to prior gross the Our year. operating

our believe and to notes approach as and our can strengthened continue asset with through the the amendment year, of billion operations our fund base sheet XXXX balance we convertible of we lending in that of XXXX. RX $X.X addition cash and billion agreement $X.X this earlier We launch extension our green the have

guidance focused for motor, units. understanding and chain, remain latest outlook to the ramping of cost on along are company. production our of business increasing total our supply our the including ramp, our production greater the driving to XX,XXX efficiency Turning with in-house the XXXX, we production across progress Based on of ramp we the

efforts our improving EBITDA are dollars. We our progress to guidance have also billion cost seen and down strong in negative Adjusted $X.X

to a are we due reducing capital billion in our expenditure Finally, guidance expenditure timing. XXXX capital for shift to $X.X

and in low the expenditures will this year billion We continue $X year to between per believe average be capital area. the year next

following costs substantial by all progress expect The line ramping we units cost path our selling Pack closing, seen introduce of positive to year driving new RX Drive LFP reductions the is aspects EDV the have material driven with the technologies. RX platform of to gross in In Enduro our increasing improvements generate in and of XXXX average the margin, shutdown we reflective introduction and three material to reroute and productions, the per down XX,XXX costs unit price. experience material to

long see EBITDA term high free target margin targets. flow cash This to reinforces gross our XX% our XX% path We financial approximately confidence in margin margin a teens our and target, clear adjusted approximately target.

the that, back With to line the for turn call open let me operator Q&A. the to

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playing of much voice much of supplier is on this and maybe fixed you a good bit material contracts? the taking which is to of question. being there over, upside cost a on a that ultimately more margin a thank for of that step how in front? Hi, total is there the And us margin the pricing of any in positive? give wanted on in absorption renegotiating terms improvement you in to you each can flagged areas How path you're I out? getting gross some ground contribution and gross a reduction. bit How first realize evening the is on improved to making progress I the deeper dig But color positive, little you cost said terms margin more little color on your and

volume. a fixed is the or all Yes, us quality business cost the dug absolutely improvements, And And -- is major is today into of sort improvements, all seeing unpacking cost that we're this just we're for materials. gross as our really of of the coming. as increased product some is this reductions working absorption born teams margin at a are our something your bill element also this point so of towards. manufacturing the a it Dan. you improvements across but glad a improvements that Thanks, are look aspects out question teams, is of, portion focus we major, of out of But development is in of that I'm material and what important not

were remarks, of achieved that with And program this the we've opening on beginning conjunction on reduction EDV roughly the the we RX commercial beginning year as Claire expect said XX% shutdown on that be are the which RX be of coming. coming next going of some with shutdown her in a year. and happened of a of feel many going preceding to host costs negotiations, level that's But reductions ongoing see material at there's which in to to whole in similar already and and

the made cost And a to A of want I the opening my are the that I just of vehicle that out to in out. into engineering also going in few are drive improvements call comments. points lot

in of a XX% reduction into number length we're So number number along improvements that and one vehicle. of the the roughly the the ECUs network the ECUs, ECUs in biggest making to the with a consolidating areas the and wiring architecture of our in a is smaller vehicle reduction ultimately in harness of XX%

you laddering aspects ultimately gross up the our our talk when normal do maybe margin talk of confidence to these confidence the in targets little this in to around have And own built thin here build cost the obligations to that contribution? we you just produced for And significant confidence around about to our structure component in cost vehicles our out further This normal commercial plant. we'll about, well is suppliers a quarter-over-quarter with facility, contractual into other the when reductions talked want so vehicles our air. continue know, as we XX% obligations not margin as see look about of is we contractual some improvements for And to the with bit associated at, Claire, negotiations. ties changes target we

contribution Sure. by impact On will on think EDVs today our as variant be well year. pack from max to and as a RX as the producing contribution positive continued on costs are to progress supplier we're the contract introduce significant this margin the margin contribution through margin EDV, negotiations material the the you later about basis, given end this positive, the we RX, year that as the heard price as the some then of we RJ of upside

as that give to do today you helpful. in us broader your just well think, a -- supply future? that sense, I landscape away EV taken And very follow then up, I That's sustain and there's you know constrained that around you. the themes confidence the and you're will demand. backlog around one going the I for into of are backlog, is but order a be the can XXXX demand what questions broadly foreseeable Thank of sales think, you've have weakness just Maybe you some

One the JD we level see importantly, we we're our within interactions customer space. what they from how advocates the most perhaps through of of products of customers we received building. space, and us and is biggest that awarding for owners in have things vehicles, we see if see will, of our our the Power day-to-day brand our driving the EV we're just premium highest the within the But the the you well with excited the become essentially it folks level and satisfaction and and manifesting that the and EV excitement marketers, been, about are vehicles have

driving our feed continues I flywheel of RXs the as that are vehicles have strongest about more the and, into are some that every deep, With continued said that clear of backlog we vehicles of as into on are roads day. said thousands it we of on brand. And have our very that's established. feel awareness and And have with that now tens XXXX we backlog, the the the in people roads, confident we visibility more to advocates

continued strong have on we for products. And so our the we're we demand quite bullish

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Tesla Hey, My thanks charging. on is everybody. first question

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Yes, absolutely.

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further ramping or forward? further the portion the to mix as Yes. the That's we going XX% Yes. this of quarter? was very about about just I'm helpful. level that's forward. ask one going to of is Is last RXs of up kind on greater the going take the RXS I a Can on continue in curious just RX think mix we mix should just mix and the the one it how set RXs should think

commented the time first this year quarter, we'd given that We question. the the were been a great majority majority in vehicles RXS a quarter, it's quarter and past John, RXT was we're first produced Yes, before of this quarter through second of of represented producing on were what any up producing.

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backlog bit So but about to long little painful settling addressing very RXT. that bias with that, XX% RXS, the steady that XX% for production a some into RXS towards remaining being state of then long-term with

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very solve position shortly. close year Amazon's We're optimistic to of and that large incentives And work Rivian that Again, this remains course, on the us very so have partnership helps align work. in ongoing.

your the Rod, to addressing contemplated we've beyond sales from standpoint second the any comments And in we positive external in historically the, Amazon impact profit a that on question made. of XXXX part gross commercial hadn't

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a your a time slower. bit you a vertical which at of been the couple, up, follow initial you a years as integration, release maybe relative to ago, in have And the plans, maybe lot spent vertically integrate speed maybe few you. discussing has Thank little

if So could capital, business curious component I'm your is you. theoretically, world it today a be? infinite of Thank you that there one in what insource would of key

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today. vehicle I would structurally in the what world important most to of like look cost-advantaged among say manufacturer So own things is looking a at the that's in

inverter single And per We've creating very that with is recently motor but axle. before, unit, relative integrated our commented and a reminder, to drive on we cost as in-house purchased the a with. advantages what we with, we Enduro stator in-house, vertically that's the did drive and Claire the rotor supplier. from the And we launched launched meaningful at unit gearbox just in-house, this the the what assemblage

with coming that efficiencies is very now business. in and advance cost we'll hard that's clearly strategy to cost driving the that's the advantages the setup, we're dual-motor propulsion our On and and working continue pursue platform, the continue house, that to given to

Thank you.

One you. our please. next Thank question for moment

with Goldman Sachs. of from line next Our Delaney Mark comes the

Your line is now open.

Yes. Good a it the this financial second the better half year to for larger outlook XXXX. guidance afternoon and EBITDA hoping I to understand implies taking updated in thank you first. EBITDA was very slightly the relative the much I believe and question. my for of loss

understand be. to better what drivers was may of hoping So I that the

around are on the go-forward reduction drivers that embedded that LCNRV Mark, a of is key half or within second our ascribed what unwind more charges to tailwinds magnitude the in outlook guidance basis. we conservative a the

a little gross half track make second so the throughout the we you excluding margins And year. the as think color bit expect improved about against as that's to of LTV, progress significant of fact, we our

course the be of increases RX well spoke that RJ the continued from We Enduro began to Max the some into just about see as QX. as importantly a to continue introduction the we'll a of There the through vehicles units average commercial this will selling that ramp as towards reduction of the drive point prices as up in introduce as in material cost pack cost and production year that dual the our well, drive of end well. we vantage progress higher

camping mean software an I the I then services vehicle. on for my you long-term share a accessories on sell so question beyond the providing around of and that those selling part accessories some curious opportunity other terms where important profitability, products of -- of insurance stands around spoke could some if gear opportunity an Rivian are bit like for Thanks And the in already you but the was for and Claire. there's Thanks. other company products? just of the think and things update that

have opportunities we When Mark. Thanks, overall revenue as the think a we about business.

go but products is the course, that and opportunities, customer alleviating think all both a we obvious in points, Of to in surround of terms joyful minds of vehicle. whole and us to also the significant sort creating the services pain terms really of to our there's sort that vehicle represents of ecosystem place for experiences. But exciting customer of

platform, of insurance a of any and the on specifics -- rate this but process on part And so simplifying insurance hard then our our profitable like, not through the with is push immediately for to transaction what purchase connects starts platforms, which attach high. the business, announced that platform. done and quite continue We've into ourselves this it's a that digital we've that the further we to looks returns our improve it's

the this long-term vehicle bullish of sort which is on of these with allows insurance the as line, into fun thought baseline exciting that you as out we're cost And items the achieve products vehicle what to we look also there's where and our that, out RX at goes something opportunities us of and aggressive core product? architected, So contemplated cost a personalization structure. then it as called that of vehicle, particularly opportunity accessories, the we out, intentionally really this as being very vehicles adventure moves really huge of the are a product think very putting the into our offering. the we're So potential offering with year some adventure

software is not certainly complaints. role then And least but that the last

about of a host this ways has been there's looked So talked at. and

a for very a to very imagine of but often, to that or to is it And we because the stakes I'd know Wassym, companies out service there's opportunities on. just where and going call you space, we table provides an large unique, areas. subscription. see certainly in going something if of revenue we complex the are very, lot other robust, still require highly I thorough sort very to numbers is very specific, be highly a these, talk think for can you sometimes believe we've imagine this is host I autonomy oversold. moment differentiated, play seen and out -- I additional but time plans ourselves, these as or but often in have say, platform And want software we this where about sold features be this I a this of spend for space

expanding RJ. all, first we [indiscernible]. of I subscription for comes with software our EDV business. Thanks, sell are and mean, a that we and developing today for services commercial Every

and features more We continue services enhance and it. road to map more the to add

paid mentioned, that RJ criteria. side, Those opportunity thoughtful of we need as are features. specific being a On really in which consumer believe an there to is options. meet subset the become could features certain We features about extremely

compute, require future high in cloud. a whether high standpoint a complexity that is vehicle this It has in from the which -- require of the it's the development level or features, very or

internally that basically we have we as We with road map will build it our communicate customers.

much. very you Thank

question next Thank our moment you. please. for One

the Our comes next Rosner question Deutsche with from line Bank. of Emmanuel

is line Your now open.

much. you very Thank

timing maybe very you side other effective important a us XXXX in available again year next you would it, for the understand but capacity planned importantly, just rerates reaching goals. the towards capacity step what as factory on it? the like sounds also for of of it And whole? leave So with is help Can sort your you of a

Yes. you They to have what next year, two Thanks, making Emmanuel. the the line I'm glad core question asked The updates really you purposes. we're did.

will represents step in that quarters there cost we're believe change the RX capacity basis of from say units our we that XX,XXX a you on is, what grow an in a importantly increase next lots we RX area annual I'd the units. certainly, is line, effectively the going more to structure. few over of The as of be where first But called out, XX,XXX it's to have in for the interest in capacity terms

that And consistent saw shutdown, what that before in with product the remove and of EV. with level a about shutdown simplify with that the improvements I costs – we we considerable vehicle integrate spoke and associated both with host Claire

say, happening, very Now improvements and want to that's cost not to not be going It's leading clear. to I up that. to say aren't

road with up our a agreements with have set clear very We map contractually suppliers.

being changes if with the of technical those you happening some preceding commercial, coordinated this changes being – those will, shutdown. changes of are of Some that batch,

down being that do that terms the line the certainly, to And time of will terms we into to next RX are in we timing the our be changes time on make we possibly XXXX in shutdown during of result guidance the those of mid of we that and – will output can happening it provided down haven't have everything a amount but as will impact have an play Now guidance doing production volume. frame. Yet, line to ultimately the But minimize we year, provide. need improvements. the of

the you something of of be capital raise -- that or it you short think on of extent you modalities more it balance very it later cash. sheet. it? and about until -- rather opportunistic? to than is That's And you that XXXX, you take timing have Okay. thinking through doing How that potential still you and later And needs prepared in obviously you in and million will Claire, you've remarks it, about to, made helpful. comments operationally your additional then I have $XX the or would the sooner room could it are will Like me strengthened guess, you for let XXXX. ask

Thanks, Emmanuel.

remarks that we remain I and of it fund prepared can our our about addition balance XXXX. you through fact in mentioned, spoke my with the And as operations As cash confident the in that further on sheet and $XX.X billion balance RX about launch in cash raised as today. notes think that convertible ABL, our the equivalents of of we the we derisks the have the we

said, that sheet. priority strong our maintain to is with But a balance

we're important and volatile well. For our Georgia facility investments as projects the such us, capital in as it scaling that making RX provides conditions growth and a mitigate into industry safeguard risk during while

this of we'll about we've evaluate maintain with that exemplified we'll to spoken variety continue Rivian in balance markets prior actions long-term year, as the mind, first sheet that to look approach diversified employ so a a the we across as the of half to to And position. continue entirety available structure. and And in capital of capital strong

you. Thank Great.

will line Kallo Kallo, One final line now come open. Mr. your of Thank R.W. Baird. moment. you. the is the And from Benjamin question with

Next the question, one moment, it Pierce Needham. line comes from of Chris with

Your final question.

of sense Can are that of swap you talk is current are or X-day waiting to these willing Or in holders them, to that want, kind get how the this the just the this more about behind reservation do of of sooner? to or what tend existing it sale of mechanics of sense versus thing. find to customers and they just type the the having get flexibility reservation that to new reservation for you will in gives plumbing customers of see want vehicle kind out a I want went, we new the opportunity kind customers?

Chris. Thanks,

think I we did we event you're to sale. had referring on-site an and Normal where in

Yes.

an where changed of could vehicles. more matches attention configuration a and vehicles our changed I artifact that Yes, off than line the have coming potential available so combination, locally matched of have where been color to essentially late shift those was vehicles where the whatever to much provide at sort were on this customer be This us has think and imagined. the case we gotten were may or are the some ever they having order on looking of the

more it's and having of was ability It would being do types experiment consumer run did conduct things look we direct to one of I experience of like we to something at. say sort an as the many to that.

Thank you.

closing Mr. for Thank you. I'd to like to back conference the this Scaringe time, remarks, hand At over please. R.J.

on I in thank on production only continuing reflected costs joining production ramp for in to -- comments down across but remains that everybody and much path in in excited today. to we're driving the and to Well, today. not facility, collectively importantly, our progress about discussions normal It's business our profitability. really making clear our ramp hopefully We're the focus very want our

approach we as on overall around I'd their us significant basis make on features forms importantly, and evidenced for foundational capability we facility architecture if side. QX call of this core the that progress and manifesting lot And gross in, technology this our these the the just software progress I'd we network to our the XX% work the terms you software and margin of and continue structure, other build continued us our updates, platform. both on Wassym And make the simplifying actually over obviously, in the associated because that that to RX and here front continued but come place progress importance the want and type And operations to what target the we're what's takes margins. and of and to between to architecture. control the manage say foundation, gross of and of see will, tactical intend QX only we long-term with of this, a that and building of vehicles, of hardware so that Normal out of call the again, for stacks side more a or platform to range is the joining electronics, to really end all in effectively our vehicle is our enabling the run products differentiation not by on point

to it term product see and RX early we available to when through see significant will see for be benefits we'll in we next of products talking the level quarter-over-quarter. savings start realized when price cost we'll the we're improvements show the and be what But being of for and year. going and about at But that the show the reveal the content we'll points the that immediate RX importantly,

to thank next you. our everyone, look call. Thank with for and you, joining So that, forward

today's your for This Thank concludes participation. you conference call.

wonderful have disconnect. You may now a Everyone, day.