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FSR Fisker

Participants
Dan Galves VP, IR
Henrik Fisker CEO
Burkhard Huhnke CTO
Geeta Gupta-Fisker CFO and COO
Christian Marti VP of European Marketing, Sales & Service
Evan Silverberg Morgan Stanley
Shreyas Patel Wolfe Research
Steven Hempel Barclays
Elaine Smith Bank of America
Jon Lopez Vertical Group
Call transcript
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Operator

Hello, everyone, and welcome to the Fisker Inc.

Second Quarter 2021 Earnings Call. My name is Brika and I'll be the moderator for today's event. [Operator Instructions] I'll now hand over to your host, Dan Galves, to begin.

So Dan, please go ahead when you're ready.

Dan Galves

Brika. lot a Thanks Fisker's everyone. to earnings everyone call Welcome

Operating Joining Executive Technology Officer; the call and Officer; Fisker, Chief are Henrik Chief Officer Dr. Financial Dr. Gupta-Fisker, me Geeta on and Chief Officer. Burkhard Huhnke, Chief

This our VP & European our Christian of and investment also partnership quarter talk Marketing, about have we to us Marti, with Service recent Sales with Allego.

within securities it we will forward-looking statements advised, laws. to Federal be the be the Henrik, over of Before turning meaning making

events or future financial Forward-looking or statements to generally performance. future operating relate

today, except non-GAAP update information be to required Principles non-GAAP to turn to financial calculated appears GAAP Accounting happy Generally statements, call, in not information in our to well as beliefs data expectations Quantitative reconciliation release. fully us materialize. include available to that GAAP and comparable as more cause risks as This that, of over from Our forward-looking uncertainties subject matters this other statements Securities any Actual the materially I'm the presented results reference regarding information These could Accepted today. by and earlier these to law. our than companies. those may any set with Commission. conform Henrik. information and today's by are directly today's actual We those that are described our The during non-GAAP or Exchange the financial it differ operating financial forward-looking measures to projected. of not presentation results forth expenses. With in to financial as obligation we in including We'll do differently release on periods filings those based press issued risks, may earnings disclaim the

Henrik Fisker

the welcome, And made we have programs. with the progress everyone, for Dan. pleased you, two and vehicle I'm on you really joining. thank Thank

of on suppliers team, course, built big business growing made and really And big some partners. our We really along supply far, and with far relationships on some progress with also we have are great serious chain.

in team, is boring. supply great good confidence broken saying lately, like also really, case, But a the program. have bit We our the on helping unique. platforms, budget on quite startup PEAR us this execute on The program ability vehicle engineering, partner We've this program. a tons purchasing, have of different that two little have really lot record and of stay also the a on sound broken internal companies comes we're actually suppliers, to of I the fact and course and together about. to our budget, all this think that team we'll Ocean we're know suppliers, time is talk and bring I on job to done this keep quite great program deals record here the really the purchasing in design, Ocean that platforms, program, time I this Magna, is that in two on program. made done on our vehicle on with as in execution think, all a And is supply time of stage have some, finance important. announced I we're on organization down in on in that be on I progress a to

do than our two started really shows simultaneously, platforms really startup there's of partnership, it of us it think two sets that our strengths I of or even any the to really two develop having business dollars I because them despite amazing, startup I partners apart. strength the think And strength have we and of the course, think don't of billions U.S. and our different our model, we of developed have. that actually raised team, strategy. more having some probably have think I ever, validates EV

this notice last million and miss, maybe we and that we our In we sees our of that the because here internal very, spent it's have mustn't a system, forget the our vehicle, and think a the only lot really viable you a they when Design. model, delays testing, development when on more company, then business. testing, business get really engineering we very which up to we And or announced manner. as you it billion reason important work spending raised us curtain. suppliers And the are balance technology I then money? sheet, have the they some and have people so Fisker to some shown suppliers. They Flexible are comes new all have a well an we whether here, would something doing the that's with allows what Agnostic our this amazing therefore, actually engineering reason actually in program. normal this is our have that to actually think Well, have a why purchasing internal upfront? And is terms in have us our our strong FF-PAD, they over our this going from team, any is think And be they to control specifically decide company. to in really we strong. that Platform suppliers, terms course be that decides of supplier developed team, and But is cash think what's program. bring pay to see credibility And the finance they we on any Also, a call of detailed fact over we're we Are with to money see to something very which I behind we're know, to have, of of we they team. specifications, comes overspending the our a different, with therefore the we're going it we payment support I haven't could sheet, $XXX or spending this accelerated point, year, added balance suppliers Ocean and dollars whole you as they technical that see our see the why production for our late planning, really get development, want to method, bunch And able course, extraordinary conserve quarter which we and the really to able haven't

ago. industry. the new as probably we electronic some vehicle, So likely similar buy as our today, selected XX-months that's brand technology launched that case, most if a years have in the four brought three, to close you it we was before But smartphone industries like vehicle,

the And Fisker. customer more and some because of testing attributes. we do that And able in we'll have been from to get November decided do will we that that select some really to get to latest you because we've this you we of we house, the show that technology in year, So new some sure have also make right want testing. to technology,

So that's into customers advantage Geeta And of finally, Marketing think in They for will This of a touch moment. that in go a corporation in our stations. Christian, create agreement large Europe. Fisker recent I for over really benefit a VP have charging will Christian European Europe our And, thousands and really with competitive our thing us. on charging and important will network Allego.

charging stations offer as might you and the When U.S. America, billions course, took to deal the out charging a of the this we you remember, America years up, with largest will a don't build out probably about to in infrastructure to and of Europe. dollars we end a Of start Electrify Electrify of signed don't to will we famous build U.S. about we Fisker customers the have five another this, We also larger Allego infrastructure U.S. a our our Ocean, independent between And take next group it pretty doing gate. think charging customers, in care that. of seven spend if of year, with have straight company

We seamlessly, and for really a and groups, these competitive unique integrate be charging our a think will experience will app us. with advantage this I two

progress update. about the let a Finally, detail on in bit me Ocean little talk program

the for we SOP XX, mentioned, are on I As November track XXXX.

manufacturing, detail testing, a So on gone in phase next a XX, with And clear Magna development course, All prototyping, well. year. the agreements. have agreements as our well visibility up as of cost we into those for this also we and and chain of ramp November have lot on platform as the final means

So on that's detail we important. that's some give And extremely something I to you want know on we track. also why are

in that So supply consistently a fact, a we experienced and handpicked we than the significantly, engineering faster little originally is to chain grown delivering has timelines. anticipated, have team

the that so track you bring perfect all there's the it ensures and system. on you bring have plans run the track, behind face also created you sure and catch have processing create where can industry on make collectively let's we nothing's is that, do contingency tracking have is tracking have it highlighted been absolutely can always to an important back actually it's up We internal issue which early. And highlighted away you on where where it, track. behind, an But see robust back you immediately falling remain system have any that that also culture going mean, and is and the is anything [indiscernible] gateways here the far you time. car find because key to amazing to and to anything able internal does, I but key really work And the right engineering a solution a we

course, full already reached also specifications frozen of have, we but freeze, the as said, I design vehicle. We all only the of not have

three the variants. a called we've model. the We model, have We're base calling it of the first have to rid of going sort our finalized just already Sport, got base variant

quite a because vehicle. call of we instead, in Sport, actually we base So that the equipment have lot

that of with Sports, price models, we in pricing Then more get the to of on a that biggest lot expect of we're vehicle So we November be announce the a our two that two technology that the margin well. year. And we have profit vehicles, options. a great these would all middle the and middle and the of add that we seller where this vehicles going options, we have price the will power, I original we details Sport to other of lot package $XX,XXX. the call of or up as

of ratings, skip and homologation course of car just you process you very decide important chain supply robust company, and our right fully validation, the to maybe chain. our have that are safety some a can important? if tested some we by deliver therefore off are own want risk and get and your following the and certification In the that Fisker of you tight startup sure to Magna of we highest We make a our Magna signed guidelines make even case, vehicles always is to are and gate, out quality testing, And with course, quality, the why testing safety. and supply and both risk to Because together for somewhere, best that vehicles.

both Now, house intensively have also money. PEAR, benefit other seeing important these for four we these we have two as be ultimately PEAR lowering as programs program start off to will program, Also, already going this testing ones vehicles, ability, house between as on of this and the carrying more Ocean on the already in capabilities be looking And on going we actually I earlier, homologation accelerated that's of two higher Ocean us working and decision the validation something Fisker save will not that over the the using in the on because we as are are are the the is in us program. volume building and launching as of And you designed, know, something vehicles but parts, from uniquely actually benefit we and benefits this parts will et cross PEAR the that functional that later this the next to cetera. of materials, building down at mentioned when that's the vehicles we're for future.

ahead, place. a line, bottom on lot of pieces work So but

the execution the for next We XX. until Ocean high production of level November year, have phase, a confidence of starts

really bit and a up I plan. update, really, me to really a actually little of marketing go people of gunpowder early. don't the exciting too give we ask about want a out I marketing. Let know lot use marketing But And of course, have

the LA plan So launch the production in And Auto already marketing this of for by whatever Fisker we simultaneously kick we really vehicle have with Show reason decided at Show. LA off shouldn't if plan way, Ocean go the a November forward, to B. Auto the

something or in vehicle November, be air else. open our an So maybe launching we it's will event

have going November, these we have. we reveal to some a But that when new technical of We couple ideas to for actually when details of we that. get are that's

the centers, November, XXXX, other of start attending In shows are into spending really we we of terms will from where marketing, several are event. course on marketing and we automotive opening experience

some We are really something some done that I into partnerships, go would going We're events, before. to unique marketing. unique nobody say creating a else unique heavily has digital

partners have for have We unleash a to already We that different and lot up ambassadors next get a great of year. vehicles into. collaborative going we're couple television series that going to signed of we're

me, out November from believe going year. So we all this go are to

led value a of gasoline you me underestimate use how reasons falling what into because the was the car just of of ask and people well a day, was we the company is the that it how away. of one move things maybe few as let's Design, the Fisker advantage in the engine gearshift, the design go those are sound, is smooth are are sort to through we buying things me Ocean about of the design, end over Now, not electrification here. what let well competition? when buy and main the lot as of Well, them for a

if the is design have good believe personally wants same to dorky drive I faster, even even boring technology. and So important. you price, more who looking more better, car, more to going for a car a get and can be And

one we're is want. people in. the specifically, people we're are people leading are save We're we of not making making So going going things in not that I the vehicles think making segments and be marketing trucks, delivery all, minivans vehicles design to that the proud that of to

are for of design, differentiators we two. one be going coming us. So key leader COVID number is in out I think that. Sustainability, think of the Sustainability, to the I

with brands buy. align I they think to today's consumers the want

just of but most vehicle believe the I a vehicle, that You're a is and spending a another lot world's make money vehicle the and of actually can one can vehicle. most not on get if you electric we world's sustainable

a think strong really, brand that's pillar. I really

think of one electric price Fisker else So vehicles, or a our technology vehicle. class, sustainability if when its another the we actually from get and will I compare in I highest is that price to without to pillars. hear brand three compared money, are amazingly you about the there's value. at competitive. have it's And vehicle, my what? Ocean highest, I look course, gasoline. the of performance ESG And I list points the what can I certain would these and you electric So Then you say expensive in on we say, electric we of amount have vehicle

a view Ocean. be also to But going judge yourself change. you'll But the going Fisker think final for do to and my the this and relating in day, think vehicle surprised, in Then, car overall is in is Yes, very there range be in we I when performance what of you're drive, release November. vehicle life. performance all going your we I electric that's know you and how to that. daily how Now is do fast you the the we dramatically talk vehicle about differentiator end to can data this performance, vehicle for another make

for We this options will performance have vehicle. amazing

feel battery vehicle and to to think guy, And also a range potentially that. don't the class price I'm XX. achieve because that something think I itself, there way, in it then in. how I actually the by best, handle. and just vehicle of but driven to out about drive surprise, went of the the track, actually a And away, a I size And car tested is and One I powertrain that as blown this handles going we're was big pack good never how Ocean what view, makes the type as able my I of I'm are system, Fisker our this it SUV vehicle it on longest can and have just you acceleration, a in of I terms and unit handles. Formula can fairly So worry driver love responses the vehicle And do. test the management do, the with have the in have. about performs, pretty it's not the zero as then. we're Ocean a course, how That's the and like I personally confident is

it. So super excited I'm about

do that easy truly And good here, probably a type team. and felt in reviews I highest to people I interface, is on I works be and best a in was I read to want go a developing big it little hand. the it we're It's and seamlessly the And user get differentiator. bigger, user in and we're shows I keyword path. I'm SUV, have be this. just I doubt My I totally we how with mentioned we all feeling coding It's what of got team is to world's make house, house, again, the is I car, to anything, going It's you time SUVs, going in to to leading house. that there think connected. and person pretty out our a think exciting Finally, Fisker We make not want. of to in different interface. was, I the is is is the don't an into course and world there it's really be it, of fully they need do data the for how seamlessly. of over way an easy are it's one. have great the going first Five have the type my user the who bit was to going this mandate That's really sitting growing that's I to them then while this another Apple but way zero Ocean. using we're exactly crossover, pretty CD a interface, intuitive. hatchback it's hot the an going vehicle the working in and to And to moment in feel want are It think but opportunities that stuff, of And segment I a have updates. and of I this engineering is to think this when very create lot interacting iPhone together going think work get

people are we excite move features and 'XX, we 'XX, on. going to So into with along new as and 'XX, so

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You quite be product know pretty this to it, class what, unique. is to get And it you able once it's try amazing. in

about excited too. I'm that, So

in ESG, the important as Let I finish me pillar with company. mentioned

progress ESG goals We on make continue to business. our across implementing significant

our importantly, And vehicles. the In the goes most And to way are world's departments we deliverables within chain. of supply aim fact, dozens most produce that to ESG Fisker. there various into sustainable assigned all

being a in this about next we amazing. they the have every not reading itself, figure but of lot going with it supplier makes certify And vehicles coX in they out the way it tire, neutral announced what details our And, how again, a do not it year, You might tire just I noticed, sustainable we we factory supply that's they to too and deal what excited virtually most by get fact Magna And with to already pretty also, think actually spend might that. just course be tires. the be but time to who and tires, produced world's all develop is do Bridgestone. I do single of the know

earlier about Fisker and we're else coX XXXX, can have behind in brand. working have making car The our goal going long-term we they we of obviously set that's feel it. Finally, are by that ESG. And the ideas to to ESG the Ocean, is announced about within terms of I I aligned We be three best Fisker, company. convinced do it. the goals a that they're team than anybody the able think really in years some aligned, on other that within are neutral I'm

take unique on now to I at our Chief strategy much. some questions over easy is efforts some So, platforms on something and Burkhard, to that for thank not very an develop two details, he want the business and only Officer later us is detail Technology Burkhard? you hand We'll provide it same but possible time, to feat, directing to a how partnerships.

Burkhard Huhnke

Henrik. Thanks, Yeah.

challenging, As components FF-PAD on developed the for The chain others. expert not no a but very supply at programs be separate sharing, developed is developing development one, possible few already vehicles ours. possible likely same but partners are was for stage our you mentioned, for highlight leverage and not company make with once specifically doubt support. non-customer phasing I'd like to platforms to there small platform that time strategy, things that us, for it unique two without early engage It's and number vehicle engineering and would two at

support strategically and by us, of from the Ocean So hundreds Magna and of for each is and program FPXX. FMXX but PEAR, experts and with for purchasing Foxconn directed engineers

then, Central So of the is is Ocean two, our part Europe, geography Asia. side, in in number and PEAR on

the us. number other Fisker development first there's and the In can number that for work program, So components zones lays the of shared. on like developed an for less foundation the when vehicles meaningful be affordable words, because and second Ocean work the other subsystems we And of been vehicles have PEAR. affordability already three for of can using development clock essentially as time advantage the around

luxury brilliant, under technical be vehicle FF-PAD starting second still And end Then executed to a after but due as they the team, if program has year market out, a we programs the we executing selected would process. experience with this in with something new finally, Geeta. high call impossible mass before, pointed that a have development learned attempted and experienced, under Ocean lessons hand many Thanks market. So our process, later dust fresh. and have now improves the not I the the that the now efficiency turn Henrik to

Geeta Gupta-Fisker

everyone. Burkhard a be finance Thanks, welcome a to and to the I'm excited schedule week to talking quarter, really we to end on of public and our you build more a and the again, maturing about with as consistent this time report relative earlier look continue processes, companies. to half

growing on target Our aggressive on an that sense our every this Fisker, are our day achieve partners teams to decision purchasing And message making, to timeline. rapid time urgency daily of driving and And SOP single adapting development supply are chain. budget. product to and the executing within is we

has In to business focus with substantial the contract of a we addition on our with pre-existing my a we have chain. no to since continued amount side very I've no products market, chain startup, development we Supply and devote purchasing Fisker big supply and at and on been are have suppliers. negotiations, time relationships

our of launches, customers the deposit product a rapid asset ability that potential parts excite most our sharing is programs, importantly, decision and base, sequential strategy, excite our to want cadence fact to continue our vehicles making critical they by to and suppliers supply the base. scale customer We light base across a have growing a process, growing with multiple

up a certainly startup, it when that phone will we given As a is not the pick call. suppliers

we consistent source We pricing, industry some to benchmarks. below traditional many components been able with have OEM sourced

the particularly improving is tech and case this more with is efficiency where costs components Now forward year-over-year.

Our cost launch closer chain. timeline of faster take advantage to to in steady improvements and those allows supply us development source

However, who premiums setbacks in experienced for there as some space. other continue risk entrants startups, in are suppliers with several build they the have to

that revisit joint to by pricing achieve highlights The we and commitment to our press EVs Henrik situations, volumes. in to managing make sustainability and progress Fisker once enticing and one our I to we in are global navigate mission brand out continue only customer seen that called build demand certain Bridgestone compelling release, the improve with in as near-term. We've we're we Bridgestone the execute, over suppliers. Now suppliers. made as these as partner And awareness recent it tier Fisker's a by comments accessible made made significant agreeing also to believe perception and for auto an will of

of And cash visibility in costs. on targets. our logistic normalize Beyond of and assembly But fully more locations, brand volatility in production nominating revenue up flow the second spent will excess and we now we Ocean month also material local to have to XXXX logistic costs reach contribute suppliers and anticipate these course several gained our when ramped have production Fisker units costs visibility. a to and quarter per key costs. during which XXXX, continue we disruptions create part labor COVID-related

and We It It assembly very very the into Ocean phases, a a Fisker to annual program's produce Magna costs critical to manufacturing covers definitive long-term quality Steyr agreement lifecycle. over launch planning complete entire broad volumes, and covers also agreement is and startup metrics This all based entered comprehensive. with facility Europe. investments, in clear the path production key ensure resident and support timing embed vehicles have in they at and our full to supplier quality suppliers to production XX, on XXXX. standards. an begun assurance program we support provide ramp cadence, gun or quality and launch Also up meet SQA, in quality of engineers to in XXXX, for a rate rapid November time

in a up India and for China subsidiaries have India specifically, to for forward business move software these to groundwork also there's in and we more progress on future and in as markets, We these countries. come set in made development sales, center

leading exciting we the access SPAC the a side. charging European for year. measure of an to I results to sponsored that of more substantially. million to strategic activity importantly, recently a getting by This outlook, highlight to get opportunity in to Before QX expected with with close benefit opportunity announced subscribed $XX European the reverse invest in a the on unique charging We quickly customers Apollo Allego us will network, our to but this and associated wanted PIPE was the to

let Now to Sales me detail. provide and of over VP European bit Christian quickly turn Marti, Christian? to you our more a Marketing

Christian Marti

pleased Geeta. innovative XX,XXX large European across of you, its the in about are network Allego European fast pan very this stations. is of process is a we charging Yes, charging expanding XX over countries, network opportunity. and already with Thank locations

agreement the to our cooperation various a to our of European is investment to frictionless priority is of currently Fisker's payments customers. ways, this charge of our integration plug Why? agreement, different offer across our network. In over guidelines in for Because to its advantage adopters. one a diligence plan Fisker Allego's partnership with the under Fisker new seamless We ISO Allego own standard. agreements, due coupon onto and the work developed point unique EV Fisker areas. is charging the we One network into competitors. Public performed is a entering many the Prior customers. to key competitive a together aim pin directly develop Under benefit app, operating the accessing making of networks priorities experience on provide to this the for commitments finding, a and

We customers expect that of Fisker to to you, charging Thank automatic when allow this the XXXX. Geeta. alliance the will before XX, to us on to now This turn and Allego the allow the charging identification register free customers offer back Ocean I vehicle XX-months payment our new March call network and vehicle.

Geeta Gupta-Fisker

Thanks, Christian.

better provided to variance the We results million than cash quarter. and ended on expenditures, in range. call. cash quarter last the million expectations the turning earnings QX a in Now our expectations to with results were $XXX spending races versus almost which internal we and $XXX outlook. the of were commentary was exclusively related on the our minimal our This capital

of the 'XX of increase program. QX as terms. several result Our front into kickoff nomination flow ramp which and in letters continued the attached sales expectations functions increased the suppliers, projections, purchase was like versus compensation, cash headcount payment on forecast which based with startup and turned in primarily higher result SG&A we in deliverable QX increase were and months primarily versus engineering for This creates was of Operationally, milestones Fisker over more R&D formal and spending. QX including orders, last and marketing a and production support costs, the in design XXXX of development The Ocean XXXX. headcount up expense a more after stock-based based drives

whilst to full test but is Number internal NCAP instead of validation for but virtual is for money features headcount outlook, The will us on relying our It What us last third-parties. with decision changes the more our is million increase also up spending programs, save drivers. IIHS are a made software prototype $XXX on and noted plan tools operating to $XX and our and narrowing in customer this, our better two, release, validation, $XXX in Number platform spending are recently reported there's plan to quarter. your develop are I testing work. original range expectations. we XXXX. have process about in to year. we driving tuning will arrange fine largely to this as advanced and one, more incremental and technology as incremental, incremental related been such and validation safety guidance. capital incremental do There this expense that capabilities solely the allow previously tests Number to can point to for powertrain really support three we out and ADAS want vehicle future just control spending our testing versus somewhat driving technology, million, midpoint three, we we also of are tighter and intense. than the regulations. And strategic press and at a Euro million the to Turning

than As balance cadence, of more XXXX for sourcing quarterly in QX, activity given we substantial focused that the somewhat will spending the QX. be expect in QX

EV driver our Now Fisker anticipated execute and a to of to production This all the important our of extremely Ocean the incentive. date oriented and on one Fisker extremely comment, XXXX. XXXX. lifetime for startup an accomplishments at to in launch proud XX, the align for everyone intends final with SOP I'm an Ocean attractive employees a in all volume XXXX. ramp November is Overall, employees This a so team high of our connection time, to stakeholders with sequential company up incentive the the enhanced opportunity a program compensation entire part for all for in be far along a on goal implement in Fisker is all to once incentive performance jointly very

into to sleepless product us, a a But confidence now budget. on the lot plans in a execution have sure we've profitable we phase. execute the critical time of questions. we happy of enter many We to and your fantastic, nights, of established on We're work have for take lot ahead

Henrik Fisker

Geeta. the please? Brika, can Thanks, queue you collect

Operator

Morgan Instructions] from [Operator First Adam of question have Thank comes you. we Stanley. Jonas

ahead. go So, please Adam,

Evan Silverberg

Hey, can of for without What startup latest question, the Jonas. guys. Thank be Ocean? on Quick your Adam locked Silverberg November on down is latest what risking battery Evan this is It's the the supplier? production you. behalf the

Henrik Fisker

saying Well, in is. it announced publicly prototype We just let me who by are battery we just already start development supplier. our with haven't

a sitting it's it chosen earnings So of that. we'll believe our competitors have any I having on of one to think in right largest know dense have. who already packs. more and really is we I the battery I because of not a elaborate I to like cell is, lot last said would say want world. I know now the energy is All But the most a one really five like would in that supplier. the battery we're call here don't manufacturers we

Geeta Gupta-Fisker

with And late start the nominated want working just sourced We the and tirelessly our build very battery last on to with to pack. validation of fact, battery elaborate amuse supplier the on design them comments have in and we've coming year. And in both entire a the phase. plan actually we we I weeks. been add entire Henrik's testing prototyping them there, or to

actually where price in the packs, earnings per think a revealing and we America. we North those hour, alluded would once of plans. locked call last we we on down And very I are both Europe I've information attractive processes, in we the have battery localized more a kilowatt about that supplier be are looking at localization

Evan Silverberg

very Great. Thank much. you

Henrik Fisker

Thanks, Evan.

Operator

Wolfe you. Thank question Patel comes Research. Shreyas from of The next

go So, please ahead. Shreyas,

Shreyas Patel

XX,XXX thanks you a release, had I believe, lot X, the Hey, that you taking on XX, In for reservations mentioned as question. June press had and you you of my August mentioned had XX,XXX.

in come XX-day So you per day versus is the were per seems has reservations imply over that day. approximately like that that would period, increase number reservations reservation XX down seeing. about And which it XXX%

on? going what's So

Henrik Fisker

can that question. I Yeah, take

know, not are spending you or we as marketing. basically, not may know, in dollars So any

We any have announced specifications really not vehicle. of the

whether have a going COVID. it, blow if us in launch, think I'm we're cost I is getting really believe a was where I more us. year, for television, this of as spend on or not and marketing we you We money to taking it don't November. of we so performance, down this XX,XXX the color, want $XXX was I in fully this middle your time surprised XX-months with without is marketing from this be point planning black reservations. out Remember, prudent vehicle. size our risk And are or option since tremendous So not the I that wouldn't put November is or actually quite from selling reservation, telling it $XXX our at you on there probably start us, the is reservation away refundable to the still dollar of keep think you we payment XX% white, to lot people a any the what to earlier, onto cancel, this if knowing marketing not we're mentioned on of

Shreyas Patel

understand competitive understand, then interoperable that wanted Europe charging given trying an just has an network. I investment with the just guess I a to how so advantage And mentioned Okay. I'm you to open Allego. that is

any anybody able chargers, exclusive Allego or be access is agreement? there in something So to this when

Henrik Fisker

if I agreement, see up that's so as that go offering free and think a or you you something normally for it's read Yeah, we of that the agreement, customers our charge year just can are year free. can charge. about you to part a don't

can free. Fisker one Ocean that huge advantage that's So the customers competitive to can year we offer a least fact buy at that do we our that

with little later. Secondly, Allego we're interface app. But a developing And be that's that's to our unique we'll unique. reveal for going a definitely something

an We to also successful. can are the guide to Allego have in advisory seat, is think necessary we we be direction so board actually going

have all able think maybe… those to important I extremely for Of going course, use these been customers. going to other to there's And I chargers. be be But us groups that's for first think conditions

Geeta Gupta-Fisker

really and And I and Shreyas jointly going customers. Allego. to also we plug a important just add for add? charge the is want point, seamless with plug technology and is charge. charge last to for developing are Christian, maybe The can Plug be he experience

Christian Marti

a seamless Yeah, because you. to recognize yourself as it really allows in experience. have depends next potential that charge need membership with credit you station the and And doesn't station you a card the customer. that market, drive doesn't European you to a sometimes to Plug recognize a you card that with identify or then

you You charge. the you is drive you to have once process on identified, taken the automatic, plug drive clouds, get and charging station, the your over payment you in

that would So advantage. call I competitive

Shreyas Patel

be that Allego the Is clear, you work? compensating one charging how year for free would that And for would just customers. to be then

Geeta Gupta-Fisker

No.

part of passed to customers. as is agreement, to benefit Fisker have a We which our the cooperation on

Henrik Fisker

that us. Yeah, financial an so with the a also you Allego, causes that upside there because go, this in we for stack could have the investment adventure so be

Geeta Gupta-Fisker

Shreyas, sole in and I also want one the to conditions, deal. of is add we have OEM EV an our that were wanted the as exclusivity that to OEM we EV

Shreyas Patel

that these all you of are plant. own. you work you kind And have it's last battery you. Europe, of But, CapEx on in localization of a one industry, I battery sorry. for going It's something one, like absorb a in capacity terms not your right. $XX what from as as a Thank I'm battery about in hour, seen to large how about you I it's of obviously, sneak believe localized contribution of just manufacturers, as could the we've gigawatt some you're to with plant? All the support would to make Okay. thinking think If you million

Geeta Gupta-Fisker

Shreyas. question, Great

to leave any partners anticipate We who not manufacturing up do manufacturing. in So, cell investment expert our to we would cell set how know it plants.

have that that financially technically believe don't also take to the We on or we capability risk.

look there is leave the once financial Where it's partner. that into weight battery commitment really battery cells come is the costs. to footprint modules assembly, critical long a at to different in manufacturing. we And because pack, there's them large. transporting if you're distances, you much where our emissions, cell And So into logistic over to we carbon assemble quite is is

want to partners. that plants. doing part this the eliminate So also at how pocketed we have coming We're months, time. reveal looking intend at some really that's with deep exciting, in localized in And we will this we to point

Dan Galves

get clear, Thanks, when to retail And was Geeta from few referring it's investors I Brika, just to ask I'm just we'll wanted just and that received clarify to said be back pack to to going confusing super Shreyas. she because jump then battery just a questions and battery assembly, in assembly, that the queue. sometimes. we

to mutual Foxconn from from planning between planning Foxconn you take are since and the Magna? how is Fisker to as well? interest one model first investment you the The is Are different business align

Geeta Gupta-Fisker

in design, in technology take don't product in and We of believe equal take game. manufacturing both Fisker, sales. to ours. should Foxconn. supply And are to course And we need product lead unique the a the directly on chain over we development, the in investments is, We our where they're since investment very marketing investing in are skin program Foxconn investment aligned and ours be are Foxconn XXX% co-invest So, we is partner's reason we areas deal interest And financially. have on any from owners and equity definition, result, taking Foxconn XXX% aligned with And taking have that a any they we as are program. actually a the of of joint with with taking the on think interests do program. not on and that from intend the structure

Dan Galves

Thanks, Geeta.

Second question interior included Ocean is, photos. your initial vehicle press release of many

on that social interior the campaigning there scaling is no back this media an Is your aesthetics? traces or since your interior website. on indication are of your the then However, in company

Henrik Fisker

the I would scaling on the and say is forward aesthetics an indication technology. of

out at interior, Auto ideas. just we And So unveiling a Show also I'm so It many about really Angeles November. Los interior, excited the complete had we an the showing in is new that promise for had incorporate we some with screen And it's design. new are even interior technology, bit a is can you, we drove unbelievable, I want in the to actually what doing, And other to vehicle a design, in I right going to exciting. we're have be it's I super it's you're of clean, think going now. feel, I'm just the between going yeah, patent this finding on quality to see think standing something the sorry. interior, the until wait But be class, November, very to The quality modern. yet of it very, and just any

Dan Galves

the that's please? Brika, it for go retail to the Can queue, back you analyst investor questions.

Operator

you. Thank

with comes the Johnson from question So Barclays. next Brian

So Brian, go ahead. please

open. Your is line

Steven Hempel

call. this think for Johnson. Thanks I Steven hosting the for Hempel Yeah, Brian is

dynamics couple around the behind expenses as kind on kind of of questions. regulations think R&D of versus plan? original in a the the increased competitive the we a reflection color just Just about that? increased ASPs? to fits and more how Or this the And R&D see model, reasoning R&D overall higher had kind driving into little midterm is Wondering we operating economic expense, the potentially Are just industry a this upfront? of going

Geeta Gupta-Fisker

question. that's a Yeah, great That's question. a great

you million, we've And also is, it actually updated guidance, at done narrowed last So $XXX to had if if the we guidance. $XXX at look we've so look million. the $XX you what million we by

Now, there's here. two dynamics playing that are

we the earning that adding calls R&D course, A of expense as content. ago, mentioned, are couple a we of increased new So is

second that certified experienced, powertrain technologies we really improved actually of when in who believe new is ago, not actually it have in and more in expenses Fisker the he need resulting VP, is performance it's that relates comes that a we do features. a And The and Karma, vehicles ago, super charge fact, almost technology, homologation who were we ADAS, because new to electric a to months A we're doing when XX-years certification, brought good in few that, is thing. and in part testing. put we prototypes and thing like

to on also spend across more other of We we to certification technologies and virtual more validation vehicles. these what certain do need on do is Now, use money can, decided prototyping course, tools different we've But house. in tools.

to I is many have want We've The we hired hiring. other that of people. point more more course out thing

So there's an incremental headcount as well.

Steven Hempel

Europe, U.S. plan November then Auto Okay. is That's marketing like and at helpful. LA related starting the the with extensive XXXX one an have Show. for to the just you And developed other sounds the

split, about remind U.S. the and unit Ocean Fisker the the Europe you can as wondering, between of you're volumes Just thinking and the as of midterm? demand over that rollout how well kind us

Henrik Fisker

year, and the to part Yeah, We're our to is XX,XXX still so at marketing that's target reservation, get least this on I detailed the going want that. our get to plan. reservations by end back be of tracking of

going quite to an to we will goal our that's 'XX. for acceleration sold out then up be XXXX, be XX,XXX in from to get So November is so December. And XX,XXX reservations to reservations,

In go towards November, going in production in into deliveries I about U.S. expect U.S. terms XX% expect to And we is do few that of vehicles would the next we starting a year. to in as within get 'XX, of and the production, we mentioned as the Europe

of come first have the came in orders served. first We this but of acceleration course in seen out U.S. orders Europe, the first so

think able XX,XXX I X,XXX kind our going we And to comfortable out course, also vehicles And get 'XX. 'XX. for be maybe of in sold units expect in to going then forecasts the easily be of can over If vehicles. people We of for be sort waiting we're around very we're get an to to to I'm extra month that per going beat 'XX. shift is of up to

up So we're a a company. vehicles how the I year, going But ramp the be to record would up. see a ramp first any up. try can already that ramp all But startup obviously, in a think is the and X,XXX up speed we month among

Steven Hempel

question. my taking for Thanks

Dan Galves

Next Brika? question

Operator

We now of have John Bank America. Murphy of

go So ahead. please John,

Elaine Smith

today, I apologies the Biden Good call bigger hopped touched a all. a bit Administration announcement earlier you've evening, everyone. sales on the target Elaine on picture this if bit question EV on we of This and from U.S. When late. for at is consider Smith XXXX. in the A XX% by the John.

and Fisker, the enforcing respond catalyst EVs would As for a think direction or impacts certain positive the the mean about in government you push industry towards a that you automakers negative potentially of to aggressively being some more increasing? internally the have to and faster as you any view way broadly have? catalyst plans the competition a for in on of it product industry Fisker would pushing maybe And as you across to

Henrik Fisker

So, that I can take one.

it Fisker. So still vehicle. takes at make it's least I years a let's be think automakers going cluster four not incredible the I to to for traditional forget, mean,

I somebody say, speed the on have EVs, at launching are to it when of going vehicles. that put even XXXX also go today, vehicles if put a So XXXX. four we're Biden we market over announced forward effort directly four Administration the exactly okay, probably our we expect going you're have the on them to on next I that and we're the to really would price. years, incentives in to lot already before looking for started full would to goes Hopefully, what's a customers. sales that's to expect

unique, the advances our our is Now one points which have, is we very vehicles. price of of

frankly million $XX,XXX. I dollars, automakers that average $XX,XXX, PEAR now with sold before make mean, vehicle is But imagine market. average I a you're have vehicle, volume vehicle talking believe to price course, I was And we point the a vehicle this incentive program, about mean don't then high we're a think U.S. the premium And lot a price is having sell lot $XX,XXX. there. good vehicle. thinking reach that XX, still vehicle of where you're and would first to purchase pretty discount a to you segment, in million a is volume $X,XXX of we're XX. money on XX.X, going that that the quite that about going a reached a And for The if The up XX under segment average the vehicle about you started vehicle, about XXXX. of for of go in of the really even but if

can a the some or disassembly the OEMs They is to the record gasoline that weak ones their even things high volume EVs. facing plants also that of EVs clientele they do One larger have of of high they before huge are no have EVs. volume

a cars. the be them don't lightning able to Because So for not sell very difficult of them. end to broaden forget auto if million EVs it's for they tunnel parts a let's have see to that before launch, two gasoline In they don't before make years even money many have on vehicles our years XX,XXX the X,XXX know launch. orders case, I of orders gasoline to two

comfortable I'm that So very is advantage this us. for be huge a to going

expectations infrastructure to will incentives U.S. as the lot that put actually government, in the as big Now of building well Biden forward they up the charging a

Geeta Gupta-Fisker

puts initiative EV rely startups to electrification entire leading who it unites that as think I great are dollars of a a have point fence. in that, don't to education more to the be there's forefront there's And customers that who us just country of lot one I a want to such brand. on where needs on billions the us, add We and sitting personally lot of about like still spend. the done a

Elaine Smith

most then the I up technology, last Fantastic. as other process on around that to and production so enforce chain Ocean to ADAS you for at rather past to expectations you correctly developing in over closer think three to for reference helpful supply what from wanted you are user the your can areas leverage in more to and source on connectivity areas you of some versus but in presentation vehicle, speak? design, versus interfaces, your supply then of vehicle? gets how remember That's color. merger source your outsource? where very as getting chain trying would I to I and software you identified follow obviously, maybe a is changed that what the among all than but rely months components. And also the specifically six in the on outsource And year, rebuild you're If wanted Has is wheel the base, component finding the thought supply to

Henrik Fisker

steel that that me stuff to partly say first I'm to facing industry. than less be and from to mean with be Geeta running going a and to find it do want is going automotive the I stand, is she's perspective, Future what that's and like consumer larger important, supply to be Well, other we the say, just going going hand to huge supply in is value. vehicle tech that's axles a revolution let like And And chain. an also revolution are to by since to component. things a automotive I that over sourced more really less device where going the chain.

So we our have not mind. changed

zero We value steel house other seating like frames components and or are in our that, consumers. as which for to trying company a have axles we not build or think zero absolutely value

in as our focusing supply But to speak in So bit much can we house. I'll general. as more little let are a on developing absolutely technology Geeta chain and software we

Geeta Gupta-Fisker

Yeah.

is want the all I components is there to think really I house. first So who the say thing does OEM in no

really So it I hard. done but really, then divested. in vertical the think have And integration they it, past is OEMs

really, as especially I's house, or is supply no there go house, makes so chain. no there who you vehicle units go develops OEM you have to in single who every from So battery in EV, is to OEM to drive

So that's thing. the first

manufacturability course, in engineering kept development, attributes, And critical most like things, of product a because design, something Magna. something be approach, light thing with relates which And perspective, that integration, area. you product where to house, the is engineering like effort can really jointly certain asset the that the it is if in something item from I is things talked as bomb house. so targets. of we partner that is critical, from like I talk an is translate which vehicle in industry components we want we in chain area leverage UI/UX, car. second an this then everything with the design to supply our critical done something do One all to of our like services, on is into It software manufactured this focus mention want said, about about is The isn't again, we

is together, that where capability with together, do an we multiple we design area So developing that in we prototype this keep we as do finally, And are freeze then joint something we house. vehicle we where the is Magna. skill totally to and And integration alluded p-releases together. have something times, testing is set

Dan Galves

have time question, lot, Thanks we for more Elaine. one a Brika, please.

Operator

final Thank you. question The comes the Group. lines Jon of from phone Vertical Lopez from

go please Jon, So ready. when ahead you're

Jon Lopez

for XXXX here have getting this it taking is more last you manufacturing of your Appreciate much. just quarters R&D late quick one questions. know ongoing the what But I the know a about first the ones. first to here. million this $XXX is do I we're how practical run want $XX number. trying of to tell I of payments on this does spend to so I'm in just average, spend. rate? of come you spent call couple if in revised R&D your apologize, a million that quarters Thanks the second. I anything spend? us for two is versus to had of like But much And about just each going I partner. year, that part you're of to the two the on just it a think the application sort Because little let's to bit back to

Geeta Gupta-Fisker

start is the by Ocean first will saying to under a dollars. So be want thing billion I

So fundamentally the a quantum hasn't program. when it's start pretty you changed. And common

The first me few spend for clarifying quarters bit but of could be guidance time a little let year. lumpy, this

be project of earnings in in XXX% a which bringing and forecast XXXX. to hiring. So the that's R&D It's increased million, new a suppliers. will we last It's spending, is in of house X% about that combination increase in a related PEAR call $XX spending combination

guidance. program PEAR it Now, of from course excluded is a prior our completely new and was

high and the Now activities in XXXX. end, want the X% than XXX related end in money at low we rather to again, we outside. incremental X% increased activity that's And it's of in house the result today's to end increase, of capability the again lower doing XXX the end, so develop spend prototype at high the at directly we're and

for Now, and I are you new house you certain building that capability, need headcount, et bit in driven of tools, you and There brought EE. course, components for certain earlier, in as if regulation also the need safety. more little you you're in expenses because in mentioned tools, spend he by changes, a are need Eurozone, need And software cetera, to a VP we and charge. hills,

So again, to either or quarter fundamentally spending. that of another change. It But than overall quarter. did shifted in gets spending doesn't less just an drive another the increment quantum

Jon Lopez

Understood.

my maybe us, monthly which question the So that's is ramp? shared at time a thanks. second about with the just maybe if sounds production period think Okay, is, to And my least formally. like what's then this the I targets, guess first I XXXX, average it that you not? would or perhaps does for as per be that zero it's state at level? some kind to take? ramp Perhaps is, XXXX month, question from long of steady a target what you move I expect point guess near? my question point at you how And to

Henrik Fisker

could a the XXXX so reaching Yeah, of vehicles right date I'm you is comment month exact is the say are in with that than reluctant There good we're now. when in news 'XX. over a more drive was we little But that some have here that change over to per capability give my do the a different Magna lot there not that. XXXX, the factors I XXXX average that to XXXX.

volume whatever well, first of would be which a over couple months catch our is of the So can reason, why doing we later very year year, XX,XXX. later I'm confident in if up target we for in XXXX,

actually the XX,XXX. to might close get think I

outbound a set force. year. They a can beginning amazing logistics with in largest up that's vehicles They So put They a that up system us we we able XXX,XXX can the has paint vehicles. do are up. case, in at and Magna inbound their service not have Magna, in where may multiple any the hall have already into ultimately year, catch over later different we an I facility. to well pre-production an think because again, whatever have the labor skilled They of year, catch have booth super

cetera. cars would people of create to facing we're that used train burgers, case their take of labor, advantage confident. producing difficulties have so et we're cars That's after this and which why startup have or going with have they factory in They're the are car Magna. makers from other They So skill with entire started to not and suppliers, making to already premium flip typical we the own infrastructure. an any infrastructure like they to not the have suddenly they

Jon Lopez

right. Thanks. All

Dan Galves

appreciate We you. Thanks quarter. talk Thank next the Jon. who really Brika you And running the thanks anyone call today. joined call. for we'll a And lot, to

Henrik Fisker

everybody. you, Thank Thank very you much.

Operator

today's Thank you. does This call. conclude

disconnect have now may your a lines day. You lovely and