REE Automotive (REE) 16 Nov 212021 Q3 Earnings call transcript

Greetings and welcome to the REE Automotive Third Quarter 2021 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the call over to Limor Gruber, Vice President of Investor Relations. Thank you.

You may begin.

thank call. for and quarter our operator, conference XXXX you, you joining all third Thank you've our hope investors.ree.auto. We seen morning earlier at this press release issued would call that I remind forward-looking include statements. today's to like may you describing assumptions forward-looking and statements projections, are our strategies, statements. plans, Any expectations, goals, forecasts beliefs, Please note which of may are our control. actual company's different by anticipated many other that of statements forward-looking reasons, the such for results from a variety beyond and which recent our Securities with that identify business, the our filing risks results. Commission, see Please and prospects principal the uncertainties future affect could Exchange and obligation statements. no assume to We update publicly forward-looking any

In or non-GAAP comparable these to their measures net financial measures. will for our addition, EBITDA, EPS. non-GAAP today, measures and filings we of see Please be providing certain GAAP reconciliation directly loss adjusted most release discussing including an and non-GAAP a

the me our Joining business with financial as please. for Barel, before open this Aviv, CFO, discussion our continue Executive who of Officer, give Hai the Daniel, over provide will Chief outlook, well to point, an call Daniel and our questions. At call Daniel. an operations update, overview our up your and is will will Co-Founder results we as today who turn the and I of

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to others from reach industry, production we positive to XXXX. milestones consistently continue we and already set we in in as many advance As continue have started apart targets the for commercial to REE

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will the to session. now Q&A move We

Okay. operator, the And line now open can please. for we questions,

Instructions] Our [Operator Please the from question is proceed line with questions. Shlisky Davidson. Mike with coming first your of D.A.

Good to I you. ask wanted guys. and … afternoon morning, good Hey, to

Good morning, Mike.

could -- your customer you is in you potentially been is under Good about the designed brand morning. product. first actually some that's to for this? and tell you Or I future? Leopard at the wanted own to something allow sell Could it a ask that that us, specific even this display point

Good Hi. Daniel. It's morning, Yes. Mike.

Leopard, is course, it sure is said they very as see companies they sit a industry. hat, a we've that provider discussions think autonomous regarding from tech it's a of concept leaders platform companies, full field. in few by see REE and when global companies of in -- is a we that remember, point. how their forward. excited, how as present And yes, I trying -- These vehicle the down to the how this with we've of to powered part deep So very we're companies all, we that first to going the be REE. and But this coming understand we see industry the best-in-class together as actually industry top as at I'm And you of logistic

in price naturally what assume they what a approach is we goes. just and those can not the what we that quite -- it's right be, platform work. And market few quite it size the be, to as is just we build you point. a then see doing should be, of we we're exactly different in So the want and doing articulating volume relevant collectively It's in think way efforts players what of a and think of what then should fields joint discussion that are having And with the we of right should a volume the should first hat the fruit it here the you the together. the and top lot course,

So been the it's -- long it a quite has in time making.

on vehicle it where today? the just concept is road But the or itself, at something that today? can showing what product a nonfunctioning moment? could like the go Or functional just you're a look it's Just

more it drive. we'll just It Oh, driving than be definitely sharing far it. drive. And

today. I on think later even

on this not players the a just having give want example, don't other, with in to body definitely views an thunder of Quite steal specifically our of market. no, I'll different no, but Just to somebody the But marketing the it's for it's driving. have right. today. [technical sign Each difficulty] intended bodies.

it can cooled. have heated compartments, You or you have can

REEboard. is a brand and have vehicle test little differently. integration built of to usual Leopard for Basically is understand course, think autonomous different we specific access integration, But differently about as hats can You or road a the stuff built vehicle, new and why bit top actually that technology nonpublic different autonomous it we on built different it's it's important tests, very that do. the I this

be it And is very for opens with REEcorners large of those a that's the future new to That just us kinds for very, brand us. going we platform market of and basis to really opportunity vehicles just corners, So exciting the come. for new another presented world new platform because the to architecture. brand

do they has any to There of it. minute cargo that the think are Got putting any that talk [indiscernible] targeting ask customer most you the that last, weight. with here? last heavier, far what X working have duty, shipments months about changed on or also Have [indiscernible] XXXX I be non-heavy you're REE long at for getting kind looking had there? been you're getting can call what a handle more kind the larger, are haul they're or of lot In the from as changes all out And platform wanted of for as you size launches. so, about here?

one. that's is programs, Yes, answer demand good the for a Oh, of With yes. higher those seen higher payloads. two we've

Class of Xs. Xs, initially them Class this point, Some starting are from actually targeting at

those our volume were payload shows how I up the we on think the a and that's So is. modular going good up because technology question and it

for what complete it probably would impossible, And us, else, for. everybody have redesign, been exactly either this a or built traditionally. is we're For

came and of the answer say we So slightly and was, more course. loads, they in heavier need when higher, volume,

basically, a point? that class change, like it, entirely, REE So you're of on when major no this issues at has for to could someone change have vehicle the at all you not just issue

It's this on Conceptually, black and for. it does we is is require? the never yes. many it mean, what answer factors. I What white, depends build

-- sometimes Sometimes know, have I physics to brake limitations, air physical to don't braking of go brakes sizes from, system, etcetera. hydraulic you

easily. coming to [ph]. evolves, this how And to evolving exactly seen those straightforward asks with market that's clear in So to it put answer and straightforward ability But conceptually, might do. our and And we bodies a quite it. of case the and market And different is of are customer actually terms corners, recently, of very different chassis we same we're be it's modular, of a commonality design. to changes time with bit spike happy ability not different corners the we've what and the be can more, challenges proud of and very a demand on study the take since in market little

Hai. an we to have one can you last end just Got share quarter? with the you. run for one I ending we reach the hope Do of could -- here out [indiscernible] count at

Yes.

our calculation million XXX So as the we shares for PR, for was mentioned the in EPS headcount of QX. end

Got the average, That's Just [indiscernible] not make want sure. it. right? to

the Yes, that's average.

Okay.

calculation. the for number EPS the That's average

the count change can XX share you but at mid-quarter the Outstanding. go a average. I'll pass, had end Is that's we with there. September there a major obviously, the because of quarter

Yes.

calculation, the the which number EPS represents the for So this calculation. is

can we pass offline guys. along, need much. Okay. I to follow-up, it will We on Thanks so if that.

Okay. Sure.

Sure.

Thanks, Mike.

Thank you.

Cowen. questions. with your comes Jeff next the with proceed from question Our Osborne of line Please

Yes, good questions American you partners was Brembo think my program. how of the you're end. X, wondering axle afternoon, if named what off per braking that to two on in far guys. announcements with strategic the thus I A and couple that the suppliers to rattle that have of or awarded of have sort that should on the Is X be number we are Axle, and accept about could to going key helpful components suppliers you you expect context? put this just or would

Sure, Yes. absolutely.

So And programs the are of few a which technology. parts, on the assume naturally, the general a which suppliers divides suppliers are which suppliers, are the and four around who together I us are common program, corners. -- those in not core when to which with our usually strategic specific technology, you to core question our working specifically are is suppliers, dedicated the nominate for programs, it strategic

Exactly.

Yes.

core sure into in We it our we between ours that with Tier So together. something suppliers, had and we we think with work a in healthy and think technology braking has very are tier are ADUs best that them they're that not nobody redundancy a American together handful, in that supplier a we buying They bring world. of the having that what capacity, that I [ph] around sure else makes technology in That's The privilege great shelf can. Brembo use. the that market. and with things, diet you them ability that, much that quality of produce development, maybe works. how or bit with they developing for to the Axle having we is of of capacity partnering which we best should putting guarantees into the suppliers. those at for production expect represent also and is that the do. create the minds with that But -- not this demand to only develop X sense nomination little they I have in make critical off it's the understand very days more way amazing in we're the that design, these joint the is the course, to forward a ample And see. program, then us unique the and We technology. product And what us to And a efficiency because make healthy key examples them top

helpful, That's it. Got Daniel.

and them on the any was things there given partners? call Another lot had to But report strategic mentioned stand customer the the or there. You question I update Anything obviously, with on customers. is, is Magna? associated on as of just spirits where key Hino a progress Navya those other two commentary with

sure. Yes,

We sure of mean to we what naturally, because question, The did, things lot Magna said thing you one. progress scene. is is market, other on we can And months partnership this we've in shared as company does terms is all, to nature progress the program done as to as if it's things the and That's few quite what that share to Brembo. make of programs shared everything Navya same did. the many transparent we once that, are making that that the The where those with we with with our the that of share that's well. want the about we to and we've result. expect secretive on to actually best we're guys quite didn't as of not trying And some think are there as shared be amazing, together. we developing we're we're properly. we strong all with of of ago what suppliers taking do you American scenes. the logistic can a we going remember behind account And something. the mentioned you because development, made want doing into first a get So, forward, share we your We've of you nominating Having we're I with done, would things to Hino it. you should with, and It Axle and looking we're that as that we signed our we've see tons behind maturing, not can't

you see of around So program, what we that the all that ahead from can currently advancements including programs we that do. mentioned. you've We're we are many run, ahead of in of those time

hear. to had. great That's That's you. I all Thank

Sure. Pleasure.

Thank you.

questions. Our coming BTIG. Levi from next line of question proceed your Igor with is with Please the

Good morning, guys.

Good morning.

supply next talked the public of road build. final steps So nonpublic I year nonpublic think call road targeting to believe significantly reaching testing ahead the the schedule, and the completed next were your you testing including road testing, selection customer about according you presentation. for for first of of on QX And engineering, originally now to

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production definitely public starting that’s tests You would see XXXX, road us for by to commercial prior sure. to want

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are mentioned some Great. payloads. asking that And just customers for recently, you heavier

how guys and that to still midway X. that Class you design. you adapt such was well, schedule? on Class X mentioned quickly want that production have like Class also the you competitive you like they we customer change half How vehicles something For to example, X able are a the vehicles can a changing then to that now say, to they’re to process targeting since asking do and Is the advantage, be adjust as through quickly

can that it's support corner, up a then there nothing straightforward. the to because wouldn't a because commonality for I'm payload resides. I it time little it's then to quite bit to chassis is months think a function, we afraid chassis, chain the have everything which that complicated. will try within because corners and corners, take residing so. have meaning that that design and answer few to do new And the is only on very, would depends it's it's in because very those And is where If I more, a We answer the more of the straightforward.

to fairly wheel before we had vehicle from can to restrictions to that -- are suspension we therefore we're you double So not, forth, imagine spring move done have different you quickly. dampers we packaging so quite a on or earth where coil and wheel don't If depends this players or as, you to is the market. on so from have single to probably fairly, such ever move and speaking have dynamics have know few and there it then, I a

you all sure want speaking guys a I'm they few quite and different As are things. to

prior to we've likely most working So -- that. that on been

past a be that So to program delayed change due any should we to straightforward. not in Currently, have the requests.

Great. Thank for turn That's extremely helpful. you answers. will I it back. the

Pleasure.

Thank you.

of is Stanley. proceed your with Adam question from Morgan next Jonas the line Please coming Our questions. with

being your tested? hands there in And would Guys that when of be are significant guess the I definition, of be prototypes in or many tested how corners are potential -- being now? of platforms, customers right content it that a

question, our it the it the test for that, product -- platform like to shortens customer testing time. we would Usually easier Adam. just a sending for evaluation, thank you when for we when prefer send full Usually we Yes.

So few we've communicated already, that tested today a I been world. those earlier around the have think, of

delivery months well think the a of we one showed few LinkedIn ago, difficulty], being and different you my when multiple weeks and that. as still in we I course They’re account, being companies If [technical ago several think types, configurations, in and by as in fields, they I already they’re autonomy. tested shuttles first on shipped followed, mainly of

Okay. Daniel. for, And just Hai, maybe clarification. Thanks, a

earlier, the the call, the EPS, but for the company, at fully for either just Mike quarter, calculated diluted or diluted you average what purposes, time outstanding. in not after question not shares for I is shares of the asked valuation fully end you bugging valuing outstanding, we're think real the that the have

One I second. second, get will back. One

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Sure.

Hai, that, Adam, a you to will -- back get will We on in minute.

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sure. Yes,

lower we for $XX So in than million the stock-based of what $XX we as -- In the sorry. XX ranges significantly -- expected was you of higher-than-expected between for can be to for see, QX QX QX, usually magnitude would the magnitude QX, million compensation had.

you. Thank Understand. Okay.

that. Appreciate Okay.

Okay.

end on Adam diluted the on basis. diluted and your a shares, of million of fully the Yes, as so we had QX, fully XXX on question shares

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Sure.

like are time. call to for There closing any further to this comments. the management no you. hand would at over back I Thank questions

accessibility, platform, with as importance that in are efforts to Thank I a of there an But questions. questions. our and various you, transparency up and quarter part strengthen allows investor started operator. we Q&A see dedicated ask know vote which more the we interacting our and No investors this to communicating using types,

so And review of -- that the number basically a couple will of votes. we the read highest were that got questions

plans, you first will And read potential answer. testing please I'll So hurdles any executing changing on on needs expectations? execution. question, Daniel customers the microchip production the comment to one or including Can shortages, is

few Brembo, very, XXXX. a forward platforms. we doing corners integrate our on to important shortages the we've allows since early chain players, VVN, any Axle vetted and manufacture global allowing should subsystems, working of production quite for Yes, and will starting and move not of challenging. on that, KYB, -- the others. like we've And after that we partner us SOP. us what for our that choose X as will the Musashi, large, solidify And started been I and with fact collaborating flexibility we've perfect our is redundancy We're that, which network we each can recently very they nominated X very boards and supply and our global by in Tier we're of manufacturing towards our American developing on -- -- terms vendor is into Maxion, say the network, always programs, leaders done that to but securing those supply of and forget and vendor The Tier development we chain it's those

best And We will customers, supply be are that very best quality actually out proud in our by working is the fact for side. partners getting great, made that naturally the at great since I there we're the news on they that think a together components the time. and the we've

Thanks, Daniel.

add past and targets addition headcount, do before, to of thing engineers months also seen employee we mostly tripled is I'll just to in XXX I maybe and our will are the one and in the on the experience, target -- we developers with target the you've few is this that, that, of by think we year. some the to which end hitting

executing So we of additional with that, have capabilities an also on producing and plan. our

Great.

more question. with of to one product. So the the regard economics now Question,

advantages if your is working there lose But the REE? work it final So OEMs to with that in a for for the total Why appealing user. specific [technical REE. of isn't difficulty] with revenue, they're risk will cost does look terms partner

point. Yes, that's a good

we So complete don't compete. we first of all,

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excited very the we're partnership So with world leading much by our OEMs.

think have. I we that's the question

touch day. Thank you today very we Yes. Thank joining you, Good us and to look soon. everyone. for do forward base

you, Thank all.

care. Take you. Thank

This conclude your does today's participation. teleconference. appreciate We

may day. disconnect time. great at You lines Have a your this