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REE Automotive (REE)

Participants
Limor Gruber Director of Investor Relations
Daniel Barel Co-Founder & Chief Executive Officer
Hai Aviv Chief Financial Officer
Mike Shlisky D.A. Davidson
Jeff Osborne Cowen and Company
Igor Levi BTIG
Adam Jonas Morgan Stanley
Call transcript
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Operator

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.

Limor Gruber

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

Daniel Barel

on to many your Limor. our Hai, After questions. Good achieved take Then CFO, of recap months. will the few progress morning be of strategic third third Thank we’ve begin the you, last our will happy that, the earnings initiatives outlook. milestones and with our our I the and follow financials in of update XXXX we company's quarter to a the will welcome and call. quarter call an with

of customer To very have efforts team, great last validation and a progress supply for commercialization significant prototype, point, unveiling mile out milestone our first securing to fully our in strengthening chain, delivery made autonomous concept we have a last this reach building infrastructure, share, the to product including vehicle. assembling the accomplishments made our We our over many quarter-to-date.

our we schedule, of company, several first make All quarter to progress. strong we these In as milestones, to I'm public XXXX. a accomplishments investment to targets to our our in continue we the team that, achieved production coming that advance of and of proud ahead our in production outlined already are Referring commercial as late has move thanks commercial and our readiness towards multiple additional capabilities. engineering

excited I'm reach a customer with First, significant we validation that milestones Navya.

chain. of development. the a result an to to leading and in completed with supply go we is successfully demonstrates which we be we re-platform is process of each is part a and we the evaluation, typical through important validation with in with example coming us share process will autonomous will reaching customers As vehicle strategic is This commercialization securing a revenues. our will ongoing commercialization systems Navya, that the while ahead an to production getting this presented is we towards future. us This closer happy of This first will in how alliances advance schedule, of French-based also customers company the A step that recently of second prototypes our you years. validation, few

buying in this also third-party support components supply Brembo we units, Axle American capacity system. to strategic of or for technology. electric for point, progress, chain our are not van integration part suppliers. the high are includes These important initial steps the nomination This not validation implementing supply but performance for provide our critically Poindexter, These drive extended To a key as braking side. delivery and only on just we nominating As we our U.S-based with started focus program, have collaboration support JB growth.

jointly are key capabilities together. We developing

design European this during allowing vendors' network, volume, to commercialization vetted last increased vision vehicle introduced out expand million steps design even are concept. up times. delivery customer $XX These global look result to be Leopard's awarded the supply Center, fully groundbreaking close where serve in highest REE companies aimed with secured Leopard and we challenging to able the mile is during our will quarter, reliable autonomous from of at demand. and concept VVN. commit CES powered From suppliers those meet we from build the showing effort technology our also are a addition, see collaborations our and that ongoing efficient an technology. by example multiple to coming e-commerce. smart facility U.K delivery We vehicle towards to chain and Yesterday, In forward REE were continue U.K critical global Engineering support enabled demonstrate one to application our expected partnerships utilizes us by Leopard, of progress as in efficiency meet to technology Leopard volumetric We business modular first in launch this the cases. and specifications solution Las government and a this action. multiple The potential for for perspective, industry efforts. in to delivery the Center demand factory Integration the robotic infrastructure and January to our all future optimize centers Vegas, will in range a to funding to other integration attendees expansion blueprint

are Texas first are ground details We site track finalizing now break the our on integration selection to center and headquarters remain finalized. as Austin, our in our in for

platforms to in extremely the another for this years. coming that is to the supports our an believe yet EV modular for grow significantly time value proposition We have manufacturers. appealing [indiscernible] vehicle that ability giving commercial growing market market, EV differentiated We REE's reduce

modularity little not changed with the have changed the process of electric and EV they control their changing a in the motors. and manufacturing remaining combustion why electric is manufacturing Other We design, internal requires However, engine brake and is industry mobility for vehicles approach that components an out by manufacturing. and vehicle than and design to new constant functions believe approach has basic that powered steer drive are mechanical new one the auto to most REE the swap fundamentally whether which ICE and is functionality. of between serviceability, motor, constraining systems or wheels

patented that into value one proposition such vehicle compact suspension, integrates critical control module. our as includes single technology REEcorner a and components Specifically, steering, braking, powertrain

we that capable that service to network AV everything longer, Our to to cost are proof. ultimately leading be powers to fully as with single the our in be world result AV virtually are and any partnership that REEboard like lower autonomous, or interior operate efficiency future security to times, of cost power modular and tier of supply to to all They using while and is can platforms the size, provides control. of cargo complete essentially them data which from greater believe significantly platforms vehicles agnostic future across translating many geared of and chain used more via architectures. saving, in and to volumetric vehicles technology believe global market, top be x-by-wire to carrying is higher serve provide capital They passengers, to by more shapes, and EV as serve intended REE's into it world's EVs EV revenue integration weight Because EVs major design in The feed being the flat underpinning REE driving Inside by multiple Intel with basically built. EV and will are our REEcorner that be [technical sizes, cells and compared all for to vehicles applications. are fuel are dimensions. centers, batteries lower designed the REE mode. The Xs. faster legacy space we on centers said on ownership human of or and are quality commonality corners. either customers. It of this approach, line building shape, powered investment, designed powered our and power capacity vehicle across manufactured can driven time I've laptops either affording source production difficulty]

technology REE whatever and approach, win. technology manufacturing Given our EV unique win,

We collaboration OEMs signed we our sectors. mobility focused expanding market that share, by major are vehicle the powered effective and laser strategic and leaders across are have while REE. types pursuit, that automotive on multiple with growing various In

complete of Our OEMs calls compete we billion build XX requires to they which to billion EV. $X of market time type platform, by believe top can for on vehicle platforms months business to new REE's years of Moreover, reduced to to us with can traditional of not introducing the the EV market cost. investment. to approach providing to plan fraction a the the any platform crucial a and to with With manufacturing, and X XX be $X X that

Magna, as arm, as truck to but Toyota's industry powered future of Hino, or challenges all vehicles access and to logistic of future by the as actively strategic such corporations are Poindexter, of major vehicles, of REE. by the will and we best-in-class their are in sales at REE. thousands we soon major which and we future are excited Navya, build global platforms players, base with are today best-in-class Through are extensive with vehicles, vehicles vehicles alliances gain using We working a electric technology. our vehicles And choosing facing JB offering possible, company [indiscernible] our the powered traditional customer electric be which hundreds

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

for in starting believe I that is we solution the a call Hi. and challenges to the turn world so of be can realized. fact the rising provide in With many Additionally, that, that industry a will to we costs,

Hai Aviv

I assess and first, with of for will drivers so financial a I the In moment achieved the of milestones connect the we some in the far would financials to to volume. agreement, spend we a third the work milestones with dots performance with collaboration our reached. to our for with many outlook time. and determined our like quarter, Daniel. you, But over potential commercial our Thank focus customers our X-year market to of call, along consistent last address

our mentioned, in based and Daniel vehicles and commercial current share, switch are from ICE are field electric market leaders the the the to these As vehicles. on assumptions partners expected

After the for will expect the be the engineering unit Once public then very will successfully place order. our third evaluation side the testing bid we the develop we testing program, expectation. the XXXX contractual next our the Navya, milestone nonpublic is with was level move commitment as code. of we sector, with customer forward as in ahead first our consistent prototype and of The or customer process part The the Additionally, from of intent. acceptance prototypes, to of close process commitment, the increases. which final production of the of completing to testing, have the customer firm quarter the code prototype, we the

where Here customer the our is of we increase, and in to as commitment as material. well spending level expect see tooling

customer. purchase successfully code Following expect the to to in process, a production testing order receive This revenue generation. commercial lead will public we from

We scale growing employees the company engineering. the by commercial employees coming activities continue quarter to entering headcount in recent across third our of XXXX. production in By XXX late course with our third and hiring the quarter, the end of reached XX over the towards most R&D

having full employees the approximately We XXXX. by expect XXX end time of

to third quarter financial results. turning Now our

and deferred As to milestones with U.S in received recorded recognized periods. be Navya, we GAAP, with as expected part in of have which accordance revenues choosing specific our payments Navya, future were from are

year, partially related the to options, This the in are the warrants we July resulting third of noncash ramp and stock-based for XXx. time the Form for $XXX of this loss in of continue which million we invested million. XX-F to our was the $XX.X for evaluation based offset performance of closure discussed which GAAP mainly in invest from the by we or previously income merger expense As with quarter at noncash of filed was business, compensation, net

as million, the programs, and XXXX. supplier As to a a of million engineering in quarter with $XXX quarter in capabilities net nominating of progress in to third loss $XX.X increased million, of $X.X quarter GAAP cash total finished we loss compared million with We compared equivalents our with of and billion XXXX the third was GAAP the $XXX.X to compared third make was end $XX.X XXXX technological cash the R&D. third at the of of advance to for investment the loss our quarter commercial and million $XX.X NON-GAAP continuing net result, XXXX.

accelerated XXXX. our achieve collaboration development, our We expect the to fund cash will of strategic balance and us further production start commercial in support position late

to non-GAAP XXXX Looking exceed $XX not total expenditures ahead, annual and in million. we expect operating capital on our a basis

as we ramp expenditures continue towards We will head XXXX. commercial expect total to launch in

and targets penetration delivery for American EV ongoing a the code through on include prototypes network. test. the types North industry side nonpublic support REE, and of of REE's additional additional partnership Additional by powered Expanding on including established commercial of execution program, variety expansion maintenance

On our thank global expanding supply the production breaking our you target by secured us. growing network leading side, executing chain our supplier, with and collaboration again ground centers. on with U.S we capability integration additional include joining that, capacity the for And vendor

will the to session. now Q&A move We

Daniel Barel

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

Operator

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

Mike Shlisky

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

Limor Gruber

Good morning, Mike.

Mike Shlisky

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

Daniel Barel

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.

Mike Shlisky

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

Daniel Barel

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

Mike Shlisky

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?

Daniel Barel

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,

Mike Shlisky

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

Daniel Barel

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

Mike Shlisky

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

Hai Aviv

Yes.

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

Mike Shlisky

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

Hai Aviv

the Yes, that's average.

Mike Shlisky

Okay.

Hai Aviv

calculation. the for number EPS the That's average

Mike Shlisky

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

Hai Aviv

Yes.

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

Mike Shlisky

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

Daniel Barel

Okay. Sure.

Hai Aviv

Sure.

Daniel Barel

Thanks, Mike.

Operator

Thank you.

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

Jeff Osborne

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

Daniel Barel

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

Hai Aviv

Exactly.

Daniel Barel

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

Jeff Osborne

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

Daniel Barel

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

Jeff Osborne

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

Daniel Barel

Sure. Pleasure.

Operator

Thank you.

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

Igor Levi

Good morning, guys.

Daniel Barel

Good morning.

Igor Levi

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

that not the successfully and have to the audience get final your the the bill, one difference nonpublic to version? tested what what you've is that for an from And the the one So process does other? between is engineering background,

Daniel Barel

sure. Yes,

of thank noticing you all, that. first So for

to in the the address going difficulty]. you we of that said We grow remember in to ahead And order milestone. earnings we're result guys that's are growing on time our significantly call, expense on [technical if think of previous engineering I a

Operator

line self check Apologies. the muted. you you Could Unfortunately, coming if through speaker you hear anymore. we can't

speaker Sorry, we please please once line back by you online. line. hear through Ladies we muted. the self again, check can't coming speaker Could stand if gentlemen, the while and you you get

the in. have line back do we Okay, speaker

Daniel Barel

back? we Are

Operator

is line speaker back.

Daniel Barel

on? we Are live? we Are

Operator

live, You’re yes.

Daniel Barel

everybody. Hi,

don't when know until hear you answer. call was Igor. did -- Sorry, the Apologies, I disconnected. when

let again. So it me to start if me you want know

Igor Levi

cut Yes, of I they mean, in about seconds words it reset. you seconds was or noticing And schedule. ahead off. Thank the X significantly after then about for XX so that

Daniel Barel

the So part. I'm you've joking. got important No,

let's the beginning. So this do from

what to road Am difference So public nonpublic correct? the you and public testing road happen one needs asked between? and what the in and I between

Igor Levi

Yes.

Daniel Barel

Okay.

is them, that right, a then time, a being And test is few to this that as is a mentioned just this the build expected A not again, a are a they're done, on build. that, level, There There for. it's mainly So and few you the we've road as it's expect time. meaning C spending singular tested event therefore, of changes you a with roads. program. minor is thank to unit the significantly Navya vehicle film or you are of the fact And our fully. those you the B that before, this done to prototype on And private orders we customer it's sure the the capacity see. in And keep mean validation why once that first private understood ability with for to that's tests Without means builds demand that, we line, And then environment. go build customer deck, our being done be develops. expect to our and to increased homologated do ahead we road due again, we to test. And we tests, important. understand But think and is closed validates film address that changes. growth does it means set the When significant vehicles any what or in program durability not build, road on the on road. yet engineering the in then, we vehicles orders, that where are production that we then difference that have of and still in are you is the process. on that customer up to doing faster through are customer that market we and it safety why milestone go this to Once they That private this test. so private And is not looking don't just the make on other first that can is of, to provide those

tests off of that are vehicle. everything that services, your and with which come almost tests therefore for So intent. the hope are the done production not I question. And are answers they process design pre-production the full tooling intent, road public at relevant

Igor Levi

Thank you. Great.

So public road are? year see on could based next we testing where first in completed half the we of

Daniel Barel

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

is with be private tests, the understand you'd like on we I bringing with rest that are complicated road integration road think partnership the multiple the the that deck believe milestones, strategy, successfully that. on run, are that milestones see The believe occur. all we very manufacturers, read top production we the where that the up, because do programs can center the our production and this It should and saying to to more to I if we on according product road tests we time, ramp public private it currently the of we as intent around tier our something are is to that a changes test very website. is we The which think address. important, able the way mainly strong though,

Igor Levi

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

Daniel Barel

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.

Igor Levi

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

Daniel Barel

Pleasure.

Operator

Thank you.

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

Adam Jonas

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

Daniel Barel

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

Adam Jonas

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

Hai Aviv

One I second. second, get will back. One

an before more don't important I while If [multiple we the it. be of But again, obviously, you activity wait call that end speakers]. need just the can to given quarter. the you're time, we amount during would question, need SBC great. -- doing I -- don't

Daniel Barel

Sure.

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

Adam Jonas

fourth a suggested be of XQ a rate or what due quarter, would but the just run to obviously, maybe final true And next one, was a early the SBC, would in run what up, say let's be rate, extraordinary Okay. dependent price range. year that But all we on the a give I too. that's didn't range could have. could provide. work could was there stock factors know you. with, if I That's know Thank you a you if questions I

Hai Aviv

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.

Adam Jonas

you. Thank Understand. Okay.

that. Appreciate Okay.

Okay.

Hai Aviv

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

Adam Jonas

Thank much. very you

Hai Aviv

Sure.

Operator

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

Limor Gruber

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

Daniel Barel

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

Limor Gruber

Thanks, Daniel.

Daniel Barel

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

Limor Gruber

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

Daniel Barel

point. Yes, that's a good

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

anything, no those have we and fraction significantly many can years. anybody those -- etcetera loses faster of the address platforms not drivechain technology, work to and work a it's And its one, and about think for decide with don't chassis making And all they’ve with. only -- with faster on the in develop which to times works changing brainer us us cases, been since they [indiscernible]. not OEMs many modularly outsourced actually most of I to we revenue, connectivity Xs, It's battery them the of So profit. usually about to many market for autonomy cost, there's focus since on Tier the And who day it's gain. developed things making have many,

the So exactly it's chain. same

In very working to a and point, already OEMs end for very, changed [technical a of to point the things in been seen take at factors years those changing we've account is the having quite the the [ph] compelling very a dealing us the addition to for expensive is a we've around. then the of preferences world line few into at this is that, people the has of the all this a And into with and market XX changes being working vehicle with its with able market market audience key this OEMs. We're bring for so with to rapidly, time out market therefore one few OEMs faster and and quite market that them. difficulty] product that for since coming program across also preference should at developing

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

think have. I we that's the question

Limor Gruber

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

Daniel Barel

you, Thank all.

Daniel Barel

care. Take you. Thank

Operator

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

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