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Lucid (LCID)

Participants
Peter Rawlinson CEO and CTO
Lauren Sloane Investor Relations for Lucid
Sherry House CFO
John Murphy Bank of America
Adam Jonas Morgan Stanley
Itay Michaeli Citi
Stan Shpetner Pickering Energy
Call transcript
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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Lucid Third Quarter 2021 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. being is conference today's recorded. that will [Operator conference Relations to the like to Instructions] for your Investor I over Sloane, speaker turn Lauren now for Lucid. today,

may You begin.

Lauren Sloane

you Third Earnings Welcome Quarter Lucid us today. Group's Call. to Thank for joining FYXXXX

Peter call and CTO, our the House, On Rawlinson, CFO. Sherry our CEO have we and

of filed Both XX-Q release and SEC the posted earnings press Our Form second website. ended the for quarterly report today. September with quarter, issued market after on our close was the are on XX, earlier XXXX, was related

we to and Before macroeconomic call, emphasize that some of within Company, as future get forward-looking Act regarding Company and financial include the volumes, meaning we the of those delivery today industry initiatives, Securities other the this have on trends, that XXXX. production started, events and we of Litigation statements and of performance want the particularly future the the are of Private based Reform information statements on

filed uncertainties, that language included subject a other uncertainties ended report Factors as expectations. you the cautionary to as the Forward-looking to XXXX, actual our quarterly the to in And we other from could to and numerous in statements factors. differ documents other results with cause and fuller for refer are be risks, factors on filed quarter September SEC discussion well of or risks, Form for XX-Q XX, Risk such

except of by are as revise new during the otherwise required to Forward-looking And result they statements, alter, obligation, speak expressively are as or future forward-looking events, rather time obligation, update, statements made any and under any otherwise, information, of disclaim as today's only call law. we made. a no or

to these undue place forward-looking You're statements. on not cautioned reliance

non-GAAP investor use non-GAAP the to financial ahead. versus management financial Lucid's addition, of the and measures is section at we over Investor our earnings issued and as A deck call. during like Relations earlier available currently reference release discussion website press in our in well measures go information lucidmotors.com. of of CTO, Peter, GAAP why as results turn reconciliation in to our call available please I'd to this afternoon, regarding non-GAAP this make In ir. now will Rawlinson. the Peter CEO And

Peter Rawlinson

relationships We're Thank to stakeholders We've investors vision the achieved Earnings Lauren. our very are and for excited stakeholders. you, Lucid's lay we course long-term forward build Inaugural out work excited welcome the amounts our to XXXX to to with tremendous and analysts with and to Call. continuing We of look Company. priorities over to

you the originally in Lucid efforts back Ativa, best were as are And that the it of to we From every creating turned ground of focused over XX up redefining in And the of which real-world results single luxury we to At means automotive learned from our aspect initial with manufacturing. in to the who accelerate Air, data. driving vehicle. million electrification, the advancing everything those miles car world the stories, the we logging adoption to armed were the engineering, as battery then new our design, is with Rethinking to carries of For Ativa our in founded efforts on we technology, time, as XXXX. Lucid market. Lucid. while

Lucid's X% us decade. rate penetration As just only industry We the global about about market through only differentiators, of global at the is we is electric X% opportunity encouraging to over overall. of EVs, over We into luxury electric the driven support continue namely who opportunity U.S. market growing vehicles, this innovation, in sentiment for vehicles reaching vehicles, and not and of because penetration and adoption, significant coupled ultimately X.X% that the expanding see Air vehicle customer sales the mandates annual here. the have the opportunity our into and believe their market. we vehicle with car about EV bring technology there's next an the overall market billion government to it. that Currently, $XXX clear years, it's key capture middle uniquely for few the the for market, for Lucid it's massive of the for within position Lucid is people our to by work provides positioned this near front

current worlds apart off, first leaders. our Now believe that the market from we is technology even

For expected an of the we've technology XXX XXX Edition of range. for Lucid of an Lucid Furthermore, And And we manufacture estimates. certification we lies. to been where range is Air continue is to an innovation even to even Dream why this one at ability example, miles to miles it R. EPA with have no now achieve have created our which we've true able range which eye towards drive surpass innovating, early a scale,

changed the it As indeed, sport. car every electric series. world's another And premier example, motorsports technology E, our in the Formula powered

Our cars battery E to race on full single enabled distances a have complete packs Formula charge.

directly Now, race, technology, car, at into what goes every race powering battery Lucid learn we Air. the every from

As vehicles truly teams the made the the hardware media software, of are possible industry. by and fusion early in of and best customers have the one learned, our

We my with from experience. of auto their customer, from standouts the customers improve executives Along over veterans, to many after and have delivery take even with our abilities and to so team's continue tech We Tesla industries. industry from automotive and working updates. Apple, including air function Model former former via plan other team, features, leverage vehicle learning electronics the members S to

the not I some achievements outside our most Before because recent our substantial quarter, significant. of remiss highlighting of that's during we and QX are these recent quite most in on you would be of update some achievements

to vehicles at HQ, ago customers Valley XXth. delivering at event two started the we off, Silicon October on First our an weeks just

past preceded number slated next, two just these paying month an occurred deliveries nationwide more weekend. Now to than dozen this increasing that including and for of deliveries customers this

full deliveries during so first already Lucid Call, wild. you'll QX your witnessed have report may have the customer sighting in watch more. this Air you on of our space for So a Yes,

Next.

Year. Just this Motor morning, Air of announced Car the XXXX, officially Lucid was as Trends

in is most the the award out and seeking true innovation, prestigious arguably vehicles. industry, Now, it groundbreaking motor

For Company was proud knowledge, and Getting CARB, I a secured a those of customer mentioned. required just only done brand This I at FMVSS, official that's the before. XXX a includes EPA our by certifications, Lucid certifications pack, a I'm oversight this that to sell should been of full installing ahead know battery FCC, QX, through new landmark And well, to miles And deliveries vehicle the ramp because my the rating I've we is to of back once there. in and new of which off-the-shelf win, hand, matter establish number we way to not simply all Air safety of range. our the leading for in-house or of technology, and But up what cleared an parts. most credibility, FDA further world achieved deliveries.

Grand of technology battery Our have with EPA efficiency per achieves giving X.X has and upon COO it -rated the pack, many other in-house, design, ratings Air XXX X unlike EVs. it components kilowatt-hour. top build companies, that X miles develop, we the official variants an an EV range in Lucid EV efficiency. Air emphasis Touring industry-leading we positions And the Power-train EPA Lucid XXX our for step kilowatt-hour a an with range of further, and of Taking miles and

we for as look view this competitive Now, Lucid advantage strategic we a ahead. as

and securing hosted Lucid after and in EPA commissioned guests. our XXth, the of event officially media, Next, rating, Arizona, factory Casa At a customers, started our we factory we Grande, production September Air. on

have had them opportunity the when reporters of of could broad cars. not Lucid The the validation from All feedback reactions a jaw-dropping Air. future to better, call Air media. from rather important been and including his Lucid I experience drive and like

pace quickly. has the also miles of production also recognize EPA experience to at accommodate the to-date, customers Which demand quantity of brand, increased result the total the Lucid is media's the the Now, climbing interest these an in fantastic and new and to both reservations, currently to spurred landmark the with and us Edition have achievement. and XX,XXX to XXX only the had Air Dream XXX accelerated increase

quarter. Lastly, is beginning. continued across North the focus a And has plans shortly. expansion ahead only now, that this and progress been service of studios the us look an Lucid to for also see for I'll priorities, now XX this area achieving about wanted I'll But America. centers I will We highlight customer our to past our journey more focus our on existing And which talk against have near-term strategic activities.

to delivering Air earlier, Lucid we models currently additions we're reservation Dream customer As deliveries. ramping I holders. our up And started last mentioned month,

of mitigate our of start our it or lineup, This have our soon Pure and this next addition Arizona. we across the centers a Arizona the grew and factory Touring feet of will capabilities production in million production end critical month. Air for we Essentially Touring followed Air open space year. to to by future in Vancouver, of and risks. Air And retail models, speaking of service allow in Grand the square Lucid progress significantly Lucid demand plant, opened location With this felt on we such our This Canada, with accelerate expansion, significant XXXX. year. to SUV by enable expansion process Gravity the for last Including expansion outside U.S., in increase will our Lucid deliver the We footprint started to Air studios manufacturing our QX first year. in XX which manufacturing plan business of X.XX capacity well investing factory. AMPX of underway to in advanced And

a as XXXX. acceleration see in half can you the of second So theme

across our increase with footprint to our service the centers program. the continue with also We but of roll-out U.S., just service service also not mobile physical

significant expect to our number in as continued commend anticipate and the to COVID-XX numerous Lucid's no and to I a during America periods for Lucid these the goals Company's We're we supply expand service auto deliver optimistic capabilities. with is progress challenging industry and have about we opening the to service environment North continues And our to additional relentlessly recent centers to these hiring employees continue quality. of like stranger and We standard and but of even who technicians grow timeline against as obstacles uncertainty. we of in would highest present chain. this, tirelessly help work a

milestones. outside Lucid to like part as areas, of overview time as would of continues intend expand its charging with to the our upcoming operations our strategy, well providing maintenance, services, strategy, major I more specifically, Lastly, but strategic and international U.S. longer-term and focus mitigating growth grow activities to our some goals in as an risk spend growth. repair and future our of we manufacturing Again, business of U.S. the sales, the

excited we're expansion climate and of we markets and these to sustainable the Middle enter leadership front, and help of retail global On Europe key in base, and this untapped while in team and and footprint in expand employee change brand continued regions. these both Lucid the demand taking level, we're has address East, mobility. also XXXX. There our the to by to key service the additions We looking in on the been entirely to with address these an regions regions market as believe new through prospects a action establish will expect

we're our of will include Project Air pure to decade, expanding me Because a pack, battery the XXXX. have launch space. the plus CFO, longer new about up. Air's this we this established in afforded future to the smaller in-house that very with I additional more our EV expected miles more to and that or line XXX cost A Moving The invaluable. miles we to forward Gravity view and well who our bank call asked a been journey. and kilowatt-hour which addition XXX for [Indiscernible] Sherry. level and we year, the XXX-plus interior benchmark we XXX achieve to in next partner details like with expect, efficiency, truly leverages Gravity. as a Air it's better SUV pack, if can of would much quick production maximize imagine And to that, allow and the excited see it, SUV Lucid been hand models, achieve have production elevate the and House, to range. variants. easy savings potential. can as the over new to the EV trainable a still with background will by luxury work including to With as touring performance for the that, technology of has ahead to finally, weight sharing With team. look be over a category-defining couldn't exciting for coming vehicles will platform to tremendous Lucid Her And I phase just next and now would on Sherry [Indiscernible] experience

Sherry House

I'd like for am to of earnings very by you covering how to of expressing quarter all much, you today third start be Thank I Peter. pleased to the XXXX. inaugural speaking call Lucid's

Just first quarter single active witnessed put you firsthand fantastic industry Company, on and has I a to validation standard joined very what team charge. number This a passionate a technological of exceed and reach and this to X of first, the and external which design and miles new months EV been I've by in even possible for on assembled, ago, by persevering team such Lucid's has when a electrification. feeds Peter set a vehicle is highlighted as many of XXX marked range tasks

form facilities Corp reverse supply our to we through will of events Lucid's readiness Group, public on execution capital sheet. July Inc. our forward Grande, the approximately significantly deep Four Capital at chain. capital capacity balance the production our Lucid's completed and of vertical This global we This transaction XXrd, the public bolstered Churchill the transaction $X.X our July Casa billion increase the on and front, cash raised Nasdaq finance These our net production LCID. sheet XXth, with further derisk profile investors and Lucid's merger and listing back Lucid pipe the balance and Arizona near-term to brought On On of integration as our support plan. on in access

service enable center enhance grow fund planning will technological in finally, expanding studio R&D moat and will the our localization, for established. to investment future footprint by manufacturing. Second, our And and this and Lucid efforts globalization capital that this efforts commercialization the has

the yield development themes serve Lucid turn I'd launch our variants third-quarter financials. will to Specifically, as results technologies. future other the programs our quarter and vehicle put as the to Gravity two of and the new like primary the your context, advance well of now dollars to attention and SUV, Air in throughout

the pack we'll packs There in series. financial And revenues for of costs In position, vehicle associated our E XXth. September vehicle began the of predominantly related of that certification the use that strengthening of our the validation ourselves investment with you'll by earlier, about expect QX the revenue until and related AMP-X. occurred quality to discussed. same XXXX, driven second transformation battery cost and in stream XXXX, the as that to startup Development The revenue ready prototype results includes First, be QX. we produce XX% fleet grown However, of our processes large-scale related startup our as production we we Company $X.X with just be share period Engineering, see which had will production Peter sold production. well was see Research our given Formula October AMPX of expenses by will customer we in not the goods revenue see QX, of in similar as talent, to compared lion's recognized in the QX, In revenue at testing battery deliveries referenced Lucid on that cost at this and year-to-date in $XXX,XXX, the seasonality predominantly race production of and the expenses million to to September. is you

headcount in period fourth million of the On September build-out in related prepare increased deliveries of the network growth quarter. we for ending expenses sales by the service X SG&A for approximately the XXXX. same months side, XX driver key $XXX additional as the versus expenses the and SG&A to A is

in also Lucid support publicly to not side people, only support order our the of traded and in as the business. but G&A processes, a systems We invested Company, globalization of also to the on house

was Lastly, third plus across the close increase cash of attributed and the compensation. an the its time required in be close. employee quarter, SG&A, the catch-up R&D a could quarter-over-quarter at at pipe, compensation cumulative grants. the $X.X on of a stock-based reflecting sheet balance and there on this both position end increase merger the from had to treatment XXXX billion, cash stock-based SPAC $X.X of grants billion before is to recorded Transitioning to our the flow cash balance the approximately sheet Lucid and Accounting

exercise The a which cashless the purchased had Xth. cash on million $XXX public from warrants also the provided We at redemption, occurred who stock with the prior notice cashless making of burden investors LCIDW warrants added the September to to redemption, investments. upfront without the access an of

exercised. redemption of a enabling warrant the on of We base extend public our of supportive investor outstanding our at from pleased $XXX over which reduced shares We of initial amount allowed comment due for to and our net to redemption warrant close want such in our prior and to warrants the provision by a and goodwill to to much of base. to X their to would exercise issuance dilution who resulted all decision to have how the and And year. investor with window We balance this close some public like October still observed sheet on exercise appreciate ratio exercise the who highlights. cashless lastly, window by XX, X.XXXX The to As retail that warrants CapEx missed our increased warrants. exercise diverse million property, a public everyone so cashless we to nearly the are reiterate I equipment also the plant, shares. program, through significant decision our

AMP-X our is investments the related footprint of center expansion service internationally. and and tooling, equipment, growth PP&E of retail in and throughout studios build U.S. to this the machinery, mentioned, I out the As and

ahead. onward about fourth incredibly are the to road Looking quarter, excited the we

the XXXX, to plan remain and Air Lucid committed with year. seeing production deliveries increasing over interest We're continue to reservations. Heading to our units XX,XXX Lucid up achieve calendar of ramp we XX,XXX the current Air. the in into to expect We in customer increase

thank are you and However, has we're the all into fourth heading fund facing. posted their the on sheet and base our the supply and website. Relations create the to that manufacturing drive can Lucid sustainable investors. future all to not retail Earnings also industry about be for extra will closing, front the Financially, through given I'd collective our and our this hard production mission as to joining suppliers, that opportunities that talented plan we work is move Lucid we the dedication recording and we our to across well-positioned I'd XXXX. will Investor our Call. been at of the In like that employees and it's our vehicles and and Third chain, proud headquarters A as we our loose the Quarter your of bring believe exceptional deliver thank stores, customer efforts challenges without ordinary balance technologies which personally to risk, partners quarter, It's I'm to value automotive of effort we like value optimistic investor logistics facilities, growth because to commenced us in of ultimate partners stakeholders, for world. energy and for of customers, plants. strengthen of

to we open transition Operator. we the that, the to participate we'd that note to and With questions. base in Before we that hope to methods are XXXX. that like additional call to broad and growing to like our early Q&A, investor ensure questions, in have I'd implemented analyst exploring can

Operator

roster. [ Instructions] we Thank you. [ by Operator Q&A stand compile Please the Instructions] Operator while

the of question John Bank with line comes Our of America. from Murphy first

Your open. line is

John Murphy

own. on onto and that quarter good Company public and a evening first everybody, congrats as and its that's Good achievement afternoon, your

everything here. are dishing else getting You're done

Terry. you, question maybe and Peter First for

second in You can try me the of this. on part

Meaning exceed the than air, think Sherry, as also or and headed, of what could come well, availability right? what far if and this XXXX. you your volume, curious, you're that just on [Indiscernible] raise And about, aspirations consider talking those pedestrian, you've then stock, by the units just where about thinking going success with that. units capacity rather think low-cost overtime, theoretically a later, than may the greater -- to bit XXXX XX,XXX little accelerate you're what doing sooner and are just maybe to obviously. and elucidate would you capital. I'm here goals gravity, Peter the been here faster even and issuance, your capacity the as about. you a what seems you will As of demand Peter, in tell grow about XX,XXX or hopefully capital, with maybe what's you us

Peter Rawlinson

the we're of next Quite under planning an got. and Right point, team interesting towards by my XX,XXX. laser-focused the on the we've in Laser direction, year we're and John. Company XX,XXX whole focused scale But now, growing management end on decade. as what units scaling XXX,XXX units the a

incredible value plan a expand level. Grande of manufacture electric in high the also have that well because manufacturing our place Casa to inverter, battery, we whole We've suite, technology got the We we've as to entire the in motor, localization And manufacturing. the the got in-house. powertrain,

preeminent technology And very But mass technology you We've So Middle to is buying whole way. out in-built just probes also capacity value in technology play, as going just which the our ambitious got. and our that and plan. position. parts a the We're to China, are will in we a the to and manufacturable. this Company, and that us technology as of be plan designed a it's of a no global got this in of make in we're here Grande But scope we world, we've terms XXX,XXX put in this to know, planned course, units. There's not is we and lot truly Casa the East other mistake tech of is this value-add part parts expansion a be cars this race. having of confident

within our volume sights. is I think our scaling well

Sherry House

get -- September also balance your XXXX. with We're you're question us, place second well talking capital. through you can of and with a sheets as I the have take today oh, billion first. deployment us of to can just of XXth. in terrific That about And where John sitting great just And a $X.X part

deployed year. year see increase to next CapEx to of large next year. a Actually multiples be going this CapEx are happening versus going You're

June, that we going of also that we're bringing XXXX So in increasing the XXXX periods, future announced CapEx from X% by and were overall already forward periods XXXX investments between planned XXXX to into and $XXX doing And million be acceleration. we X%. to to

going Company, as it. our deploy that a prior that, CapEx. we ability if of might opportunity start to versions recall is to and -- expansion be, continued are accelerate to our So down there beyond XXXX and in then we suggested And presents step ready opportunity that the for our itself might are we motto you our CapEx but for

go that We of do We sources. increasing a of think will certainly after it. from is us different to lot today, there capital availability

haven't debt a we the we even quickly. increasing You'll well. note what on and have opportunity the take still fat loan-to-value feel increasing, price we we chose us about to to lot if and we it to gives debt of there ability that efficiently we provide on, like with Company's terrific then do, though deploy other We're are could opportunities the really as and good capital feeling taken

John Murphy

I the obviously on gravity, if as but is [Indiscernible] the with consumer air, Air about the a pun the if pull in the one the And When act form differentiation that's not it's We're real, gravities you of range. what's the have a follow. view a you question, do range in you then Peter. gravity with, the second to planet. best not knockout just How best-in-class to Arguably, market. just the factor, I best mean, tough products given think for presumably as quite that. market? intended, good mean, following

Peter Rawlinson

project. for and super space I to I as heart. So Air you the 'XX well. have of its class, glad bunch me about and that. advances getting We've as unique as features Gravity close it's it SUV late We're the space going or ready equally it's electric be think to incredible Gravity. train, to to the very a asked dialing, my going range space. of We're in excited sedan with made It's going X production is whole car really for its big am X concept, miniaturization in disruptive deploy

John Murphy

stock then each housekeeping have Sherry, it. SG&A line and item, question, R&D just you in [Indiscernible] an Okay, if us was you that specifically comp sorry, how give could a just if much and

Sherry House

and to double across I It's otherwise -- $XXX the have two actually have have double It merger and up it has trigger can you related is I mentioned. tell to effect yes can your statements. a you spend the million was that might roughly happen on put like it you cumulative really the chip what accounting before

John Murphy

performing Plus the stock is well. very

So that's Thank it. appreciate a I a much, to very high-class guys. you problem have. always good

Sherry House

that cumulative Yeah, it to of course. the it's quote, And it was a more, the than stock was stock right? price

John Murphy

Okay.

Sherry House

Yeah.

John Murphy

Thank much, very guys. you Great.

Operator

Thank you.

you reminder, one question limit to ladies a yourself ask and As and gentlemen, one follow-up. we you that

Our next question from Adam of Stanley. comes the line Morgan Jonas with

Your line is open.

Adam Jonas

first car. the Year incredible. Especially your Hi. considering Good evening, Car Award. everybody and congrats MotorTrend it's of That's on the

well done. So,

Peter Rawlinson

Thank you.

Adam Jonas

Saudi up had delta now, is the XX the -- of reservations question little understanding the end of quarter to the My you the within helpful. maybe within what at of to versus on international, can delta. that like-for-like much Then international, give reservations I'd American any us XX be so I a a Peter. North non would Saudi of opened how is a or Thanks, reservations from the that be over curious color you

Peter Rawlinson

in [Indiscernible] announce U.S. reservations big markets, also, number biggest the the economy upon which gained efforts its corrective is heartening that's and of is which the the reservations haven't we our China. is market the product. teacher, up its I of But home market opened don't absolutely is that really because international is our and carbon Saudi country and and it's reservations, wealth XX,XXX, sees before based great bulk mean, We so we even forward-looking

Adam Jonas

you confirm going Thanks. you why distribution of Okay to or you just a are second and you not, wanted I Peter, considering a for on franchise that not advantages that. whether remind to why your direct disclose model, us you're consumer but the using strategy, model. I'll but leave want question, it using can believe just franchise to my And to don't

Peter Rawlinson

that the we is but and experience Well, more brand. it are Lucid to precious brand, And We It's discovery, delegate I defines and is journey just through thing brand. not than consumer's here through about correct, here That's journey think luxury consumer purchase in intrigue, to how product. a just there's product directly. to The than the creating need Devin. and do a new through too the the consumer third-party. Air choreograph the the better ownership, to important

Sherry House

allows there's You that dealerships independent benefits see in not lot and you're this it consistency in of that a can with working as really just a driving messaging relationship direct well, controlling just also pricing, control, lot franchises we more

Adam Jonas

Thank Sherry. you, Peter. Thanks,

Peter Rawlinson

Thank you.

Operator

you. Thank

Our comes line of the Itay Michaeli next with Citi. from question

is open. Your line

Itay Michaeli

Thank Hi, everybody. Great. you.

Just question. a first

going up to First, to reservation back the XX,XXX. growth

the you're how unveil are when book I gravity and reservation there? up even in open momentum seeing more guess, reservations, With about the thinking you formally to,

Peter Rawlinson

particularly next reservations. I would the sort a say. over Oh later we have manufacture gosh. level that that things, reservations reflecting got Touring months split actually of such EPA our all We've Dream increasing. and Grand a really laser XXX time. until the year, But I'm And we The units good expanded to know. you the Touring we've to demand. greater substance about like tell are got next to XX for to with sold But that that XXX something I really nice show very can possibly guess right mean, really split you we're else. out of now, and our in happy blend. Edition, the I've growing, or We've much I'd I'll reflect a of reservations in those Well, on Gravity got car, of so. as focus I rating will blend a growing Air. nice

Sherry House

numbers, that at look order an we revenues we had the reservations about XX,XXX book X.X billion. talked also XXth had you that and about when fact, reflects of talked In and September about

can the you see balance. where do really it's a there mix So that good MSRP just some from not it you gives and math sense pure, wise and a over-index nice of consumer

costs it where decreasing and going it happy time we're is as forward. we margins. with So we're enjoying And be to also keep go over and improving watching we'll

other these a up. not products as in so position we of really feel good pick like And we'll be some

Itay Michaeli

That's your Dream and you us you look helpful the software all. thoughts in-house? terms latest That's can just versus might and to update on partners drive in secondly, very of on strategy maybe do hoping what

Peter Rawlinson

has the foundations host advanced with And electric in today key range power solid-state closely of car of radar suite. the the mixed long best a electric XX cameras, whole XX suite, course, radar. on here XXX degree strategy and up, and most focus that train. Our with vehicle sensor with endowing hardware core been, world very line creating of

house of most foundations been the hardware, of have in So broadly which is the in the step the Create that's X marketplace. the and terms plan. software the for advanced competitive

step we've Now be achieved software. that, the next will advance that to

we're suite the planning hardware standard see upon Valley we're that based we've to that But here and to as team. the in as be, know, a as and to do Now, very position open going default in-house of in-house. but to cost develop is potential development in software to that partnerships Silicon building I take now default the the and will think I'm potential you software and got that bonus, I a terms

Itay Michaeli

all you. That's Thank very all, helpful. it's

Peter Rawlinson

you. Thank

Operator

Instructions]. [Operator you. Thank

Our comes from Shpetner of next the Pickering question line Energy. with Stan

is Your line open.

Stan Shpetner

to a gross terms of Hi, what drive view, the And over over you time, time, you take and over of the margin the to, greater vehicle shifts implications thanks speak -- for Can variability trend degree Air. that in how, you'll question versions sales of and have launch. gross if that are congratulations what point a new time? a of you that of proportion margin how have mix for a on different taking bit, of little my as volumes of pure across

Sherry House

questions. much Yeah, your thanks for so

we growth driving just we especially decade. arena expenses, about and to XXX-horsepower. range, gross mid basically to from model can because with margins how time can a respect we battery that or do about to the gross advantaged to unique overall, over going manufacturing, position go we're up to expecting question tremendous as activated is be be volume is need mile increases going the the the reduce our improving reducing to customer deactivated XXX have as going to our the by products activating the well thinking features a With are to that Edition within able machine the your of what year, while pure see XXX by and one you're to the pure our we're -- in that produce trim you're technology. see that just are we're But improves. next we seeking. versus such still going have higher-priced year lot margins of there range a lot it's reach and and of were absorption the Dream competitive our to efficiency make costs reducing half then to over we're employees, And initially margins new The those because depreciation our going -- we training So of can as motors, not pack And be be exactly of also

we have. that enablers the are those So

Peter Rawlinson

direct a miles, electric XXX is most in a inherently the smaller, it viability commercial car, create And therefore, upon XXX tool That's the viability because margin where item single now, in proportionately will means as with be range king. advance battery we're commercial we a expensive car battery and our brand our efficiency have this a it technological which efficient. of but competitive provide as the miles, as than competition, to at whatever, bearing -- technology able pack extraordinary the is to that future But, absolutely more Company. Right our to technological because will a smaller the a with range. that using achieve because back define we We'd affect our right. range to that, -- enabler, the commensurately to be use force, is the

Sherry House

say and on I coming bear experiences We've if all important I to gotten And of the the got the done -- done brought point too And just make another have They've you They've is with. sure before. the We thing to an not had would team. at that's team. We've just factory wanted it I amazing that costs Audi. and left plants it and supply other just manufacturing down. they efficient, up And terrific team. running our chain there products our terrific a and

Peter Rawlinson

with you way. that I going down factory future, the the is for cost the designed in with car am

Stan Shpetner

Thanks.

you Just different a that to have to to for we a year follow sense you of the order bit balanced begin? of see between expect Air. next up. Earlier fairly versions mentioned Can give the book of the Lucid shipments of when could that pure you us little a

Peter Rawlinson

out. latter fuel vehicles. is I But year impression is think to next of which the of part my want to want get fulfill I mission, the when mass in down. pure. comes cost it's the I our electric adoption

Stan Shpetner

very you much. Thank Great.

Operator

question-and-answer closing Ladies this over would and back to our session. concludes like the gentlemen, for to now call remarks. turn Peter I

Peter Rawlinson

so you much. Thank

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Operator

your conference Ladies for call. and today's gentlemen, concludes Thank you participation. this

may disconnect. now You