REE Automotive Ltd (REE) 2023 Q3 法說會逐字稿

Thank you all for joining our third quarter 2023 conference call. I hope that you have now seen our press release and shareholder letter issued earlier this morning at investors.ree.auto. If you haven't, I encourage you to review it as it has additional insights into the topics we'll talk about on the call today.

感謝大家參加我們的 2023 年第三季電話會議。我希望您現在已經看到我們今天早上早些時候在 Investors.ree.auto 上發布的新聞稿和股東信函。如果您還沒有，我鼓勵您查看它，因為它對我們今天將在電話會議中討論的主題有更多見解。

I would like to remind you that today's call may include forward-looking statements. Any statements describing our beliefs, goals, plans, strategies, expectations, projections, forecasts and assumptions are forward-looking statements.

我想提醒您，今天的電話會議可能包含前瞻性陳述。任何描述我們的信念、目標、計劃、策略、期望、預測、預測和假設的聲明均為前瞻性聲明。

Please note that the company's actual results may be different from anticipated by such forward-looking statements for a variety of reasons, many of which are beyond our control, such as the ongoing military conflict in Israel.

請注意，由於多種原因，公司的實際結果可能與此類前瞻性陳述的預期不同，其中許多原因超出了我們的控制範圍，例如以色列持續的軍事衝突。

Please refer to the company's Form 20-F filed on March 28, 2023, with the Securities Exchange Commission which identifies principal risks and uncertainties that could affect our business prospects and future results. We assume no obligation to publicly update any forward-looking statements except as required by law.

請參閱本公司於 2023 年 3 月 28 日向證券交易委員會提交的 20-F 表格，其中確定了可能影響我們業務前景和未來業績的主要風險和不確定性。除法律要求外，我們不承擔公開更新任何前瞻性聲明的義務。

In addition, we will be discussing or providing certain non-GAAP financial measures today, including non-GAAP net loss and non-GAAP operating expenses. Please see our shareholder letter for reconciliation of these non-GAAP measures to the most directly comparable GAAP measures.

此外，我們今天將討論或提供某些非 GAAP 財務指標，包括非 GAAP 淨虧損和非 GAAP 營運費用。請參閱我們的股東信函，以了解這些非 GAAP 衡量標準與最直接可比較的 GAAP 衡量標準的對帳。

I will now hand the call over to Daniel Barel, our CEO and Co-Founder.

我現在將把電話轉交給我們的執行長兼聯合創始人丹尼爾·巴雷爾 (Daniel Barel)。

Thank you, Kamal. Hello, everybody, and thank you for joining us today. I'm pleased to share that we have had a strong third quarter. We continued to see strong market demand for the P7, which was converted into the expansion of our authorized dealer network and North American footprint, which now stands at 20 partners and more than doubling our initial order book volume to $43 million in the last three months.

謝謝你，卡邁勒。大家好，感謝您今天加入我們。我很高興與大家分享，我們第三季表現強勁。我們繼續看到P7 的強勁市場需求，這轉化為我們授權經銷商網路和北美足跡的擴張，目前合作夥伴已達20 個，過去三個月我們的初始訂單量增加了一倍多，達到4300 萬美元。

As evidenced by our achievements this quarter, we continue to receive strong positive market feedback on our unique P7 vehicle with very robust feature set value proposition and low total cost of ownership.

正如我們本季所取得的成就所證明的那樣，我們獨特的 P7 車輛繼續收到強烈的正面市場回饋，該車輛具有非常強大的功能集價值主張和較低的總擁有成本。

The first batch of customer demo trucks are in advanced stages of build, and we are on track to finalizing our FMVSS and CARB certification, which follows our recent EPA approval and act by-wire certification visibility. We expect to ship the first demo units to our customers by Christmas.

第一批客戶演示卡車正處於建造的後期階段，我們即將完成 FMVSS 和 CARB 認證，這是我們最近獲得 EPA 批准和線控認證可見性之後的結果。我們預計在聖誕節前將第一批演示裝置運送給我們的客戶。

Support is a critical part in commercial trucks. Therefore, we have built a strong customer experience team. We work together with and support our customers as they put our vehicles to the test in their fleets. As we grow our order book, we continue to strengthen our balance sheet with additional selective financing.

支撐是商用卡車的關鍵部分。因此，我們建立了一支強大的客戶體驗團隊。當我們的客戶在他們的車隊中測試我們的車輛時，我們與他們合作並提供支援。隨著訂單數量的增加，我們繼續透過額外的選擇性融資來強化我們的資產負債表。

These efforts are part of our risk adverse plan to secure in advance the working capital funding required to produce the expected binding orders of our growing order book. I am particularly encouraged by the continued confidence and support from our shareholders, which have resulted in a capital raise of $8 million with favorable terms, led by a long-standing institutional investor in a very challenging environment.

這些努力是我們風險規避計畫的一部分，旨在提前確保我們不斷增長的訂單中產生預期的具有約束力的訂單所需的營運資金。我特別感到鼓舞的是，我們的股東持續給予我信心和支持，在一位長期機構投資者的帶領下，我們在充滿挑戰的環境下以優惠條件籌集了 800 萬美元的資金。

As we shared. -- Operationally, we continue to demonstrate strong financial discipline by remaining on track while decreasing our year-on-year GAAP net loss by 28%, partly because of the efficiencies we implemented around R&D and SG&A as well as government grants received.

正如我們所分享的。 -- 在營運方面，我們繼續表現出嚴格的財務紀律，保持正軌，同時將 GAAP 淨虧損同比減少 28%，部分原因是我們在研發、SG&A 以及收到的政府補助方面實施了效率。

We believe we are scaling up responsibly, building vehicles to order and not for inventory as we work to bring our production tooling online. We currently plan to have this operational by the end of 2024, which we believe will enable us to reach bill of materials breakeven on the first scale production batch.

我們相信，我們正在負責任地擴大規模，在我們努力將生產工具上線的同時，按訂單生產車輛，而不是庫存。我們目前計劃在 2024 年底前投入運營，我們相信這將使我們能夠在第一批規模生產中實現物料清單收支平衡。

In line with our philosophy of complete not complete, we are in advanced stages of nominating a US contract manufacturer to assemble our P7 lineup in the US to help us facilitate economical mass production. We believe we will be able to scale production up to a rate of 4 to 6 trucks a day by the end of 2024 with a max capacity of up to 5,000 trucks per year. We look forward to providing you with an update on this soon.

根據我們「完整而不是完整」的理念，我們正處於提名一家美國合約製造商在美國組裝我們的 P7 系列的後期階段，以幫助我們促進經濟的大規模生產。我們相信，到 2024 年底，我們將能夠將產量擴大到每天 4 至 6 輛卡車，每年的最大產能可達 5,000 輛卡車。我們期待盡快向您提供相關最新資訊。

And before we open for questions today, I wanted to end with this. In the past three years, we've seen a pandemic, challenging market conditions and now war. But today, more than ever, we are strong, focused and committed to deliver no matter what.

在今天開始提問之前，我想以此結束。在過去的三年裡，我們經歷了一場疫情、充滿挑戰的市場條件，現在又爆發了戰爭。但今天，我們比以往任何時候都更強大、專注並致力於無論如何實現目標。

It is so inspiring to see our teams around the world, working together as one to continue delivering, especially with the recent war in Israel, which affects us all in different way. But it's not expected to have a material impact on our operations.

看到我們世界各地的團隊齊心協力，繼續交付成果，真是令人鼓舞，尤其是最近發生的以色列戰爭，它以不同的方式影響著我們所有人。但預計這不會對我們的營運產生重大影響。

Our teams in the UK and the US are supporting our people in Israel, and we are thankful for the hundreds, if not thousands of messages of support we have received from our partners, customers, suppliers, shareholders, and even people we have never met or done business with before. Your support is everything as ever. I thank you all for your continued good wishes.

我們在英國和美國的團隊正在支持我們在以色列的人民，我們感謝我們從合作夥伴、客戶、供應商、股東甚至我們從未見過的人那裡收到的數百甚至數千條支持信息或以前做過生意。一如既往，您的支持就是一切。我感謝大家一直以來的祝福。

We recently held a very productive Q&A session with our retail investors. So we have invited our retail investors to share their questions for this quarter. Today. In addition to analyst question, we will also answer several of the retail investors questions.

我們最近與散戶投資者舉行了一次非常有成效的問答環節。因此，我們邀請散戶分享他們對本季的問題。今天。除了分析師的問題外，我們還將回答散戶投資者的幾個問題。

Therefore, I would like to open the call for questions, where we will be joined by our Chief Financial Officer, Yaron Zaltsman; our Chief Business Officer, Tali Miller; and our Chief Operating Officer, Josh Tech.

因此，我想開始提問，我們的財務長 Yaron Zaltsman 也將加入其中。我們的首席商務官 Tali Miller；以及我們的營運長 Josh Tech。

Operator, you can now open the line for Q&A.

接線員，您現在可以開通問答線路。

Thank you. (Operator Instructions)

謝謝。 （操作員說明）

Mike Shlisky, D.A. Davidson & Co.

麥克‧史利斯基 (Mike Shlisky)，D.A.戴維森公司

Good morning and thanks for taking my question. And I'm glad everyone safe over there in Israel, at least. So I wanted to ask quickly about some of the comments you made about having a third-party contractor doing the production to start.

早安，感謝您提出我的問題。我很高興至少在以色列每個人都安全。因此，我想快速詢問一下您對讓第三方承包商開始製作的一些評論。

Can you just clarify? Are they just going to doing for the concerns and then you'll be building the actual vehicle itself within REE facility? Or are they going to be doing the whole thing? Can you kind of just give us an overview of how it's going to work at this point.

你能澄清一下嗎？他們是否只是為了解決問題，然後您將在 REE 設施內自行製造實際的車輛？或者他們會做全部事情嗎？您能給我們概述一下目前它的運作方式嗎？

Hey, Mike, good morning. Thank you for the kind wishes. On the contract manufacture, I think it's a it's very simple. The core technology for REE is by-wire technology, right, the REE corners. That remains within REE and will always remain within REE.

嘿，麥克，早安。謝謝您的美好祝福。關於合約製造，我認為這是非常簡單的。 REE 的核心技術是線控技術，右，REE 角。它保留在 REE 內，並且將永遠保留在 REE 內。

The contract manufacture will be assembling the full truck, whether it's going to be a cab chassis, a strip chassis or full truck powered by REE, and that will be in the US. So the full assembly will be done in the US. The Corners it will be shipped from the UK from our already set integration center.

合約製造商將在美國組裝整輛卡車，無論是駕駛室底盤、條形底盤還是由 REE 驅動的整輛卡車。因此，完整的組裝將在美國完成。角落它將從英國從我們已經設置的整合中心發貨。

I see. So it's all the way around. They will be receiving fully assembled, ready to-go corners from you, and they'll be the ones.

我懂了。所以一切都是如此。他們將從你那裡收到完全組裝好的、準備出發的角落，他們就是那個。

The correct.

正確的。

Perfect.

完美的。

Perfect. And then I wanted to clarify some of your comments that you mentioned, how you're going to be building to order and not building into inventory. I guess, when you say inventory, you mean, you won't be building final products, that will be on beyond REE's books and it will be inventory at the dealership level or will nobody have inventory? We won't have inventory, normal dealers unless there's going to be ordered from the customers.

完美的。然後我想澄清你提到的一些評論，你將如何按訂單生產而不是建立庫存。我想，當你說庫存時，你的意思是，你不會製造最終產品，這將超出 REE 的賬簿，並且將是經銷商級別的庫存，或者沒有人有庫存？我們不會有庫存，普通經銷商，除非要向客戶訂購。

Well, yeah. So when we say we're building to order it means that we're building only for our binding orders that we're receiving. So our customers can have, of course, that would need to have some sort of inventory, especially our dealer for our growing dealer network in the US will have an inventory of trucks.

嗯，是的。因此，當我們說我們正在按訂單生產時，這意味著我們僅為我們收到的具有約束力的訂單而生產。因此，我們的客戶當然可以擁有某種庫存，特別是我們在美國不斷增長的經銷商網路的經銷商將擁有卡車庫存。

But REE itself is not going to be building inventory sitting up in parking lots are waiting for me to be taking. We're building only for the orders that we are accepting from our customers. It doesn't answer your question.

但 REE 本身不會增加庫存，而是在停車場等我去拿。我們只為我們從客戶那裡接受的訂單進行生產。它沒有回答你的問題。

Probably yes. And maybe one last one for me. Regarding any change in tone from any of your California customers in the last quarter or so. I mean, at this point, there are months away from being forced to adopt EVs. Are they asking you about like January first delivery dates or possible or not unless you can deliver at that time, but are they asking in a more urgent matter further vehicles?

可能是。也許對我來說是最後一件事。關於上個季度左右您的任何加州客戶語氣的任何變化。我的意思是，目前距離被迫採用電動車還有幾個月的時間。他們是否詢問您一月份的第一個交貨日期，或者是否可能，除非您可以在當時交貨，但他們是否詢問更緊急的問題進一步的車輛？

Yeah. We see very strong demand from across the US, but of course, also in California. And some we've already also seen yesterday a change more relevant to smaller fleets in California come down on the level of payment that they can receive a reimbursement.

是的。我們看到美國各地的需求非常強勁，當然，加州也有如此強勁的需求。我們昨天也看到了一些與加州小型車隊更相關的變化，即他們可以獲得報銷的付款水平下降。

But maybe, Tali, you want to add something more on that?

但也許，塔利，你想在此基礎上添加更多內容？

Yes, sure. Thanks, Mike for this question. It's a good opportunity to share with you that we definitely see very strong demand for the power and battery vehicles. We see from our customers so the dealers as well as fleets are asking for, anxious to receive our demo vehicles because they see the advantages of the technology, the powered by REE, x-by-wire technology with the different advantages of the operation, efficiency, safety and others. We see this demand in California, but not only, so across US and Canada.

是的，當然。謝謝邁克提出這個問題。這是一個很好的機會與大家分享，我們確實看到了對動力和電池汽車的非常強勁的需求。我們從客戶那裡看到，經銷商和車隊都在要求，渴望收到我們的演示車，因為他們看到了該技術的優勢，由REE驅動的線控技術具有不同的操作優勢，效率、安全性等。我們在加州看到了這種需求，但不僅限於美國和加拿大。

Okay. I'll leave it there. And again, my best wishes, everyone. Stay safe. Thank you.

好的。我會把它留在那裡。再次向大家致以最良好的祝愿。注意安全。謝謝。

Thank you.

謝謝。

Colin Langan, Wells Fargo.

柯林‧蘭根，富國銀行。

Thanks for taking my questions. I just want to follow up in the press release you talk about a grant that helped the Q3 results and any size of how much that helped and then is that sustainable? Or is that going to continue or is that onetime thing?

感謝您回答我的問題。我只想在新聞稿中跟進，您談到了一筆對第三季業績有幫助的贈款，以及任何規模的幫助，那麼這種幫助是否可持續？或者這種情況會繼續下去還是只是一次性的事情？

Hi, Colin. Good morning. Yaron here. So the grants are following with us this year and they will be with us also next year. We cannot give too much information about the amount, but it's not a meaningful amount, but it will stay in the same phase as we are right now also in the next quarters, going forward.

嗨，科林。早安.亞龍在這裡。因此，今年我們將獲得贈款，明年也將獲得贈款。我們無法提供有關金額的太多信息，但這不是一個有意義的金額，但它將保持與我們現在以及未來幾個季度相同的階段。

Sorry, is it continuing every quarter? or is it just you get will be in the next quarters going forward?

抱歉，每季都會持續嗎？或者只是你在接下來的幾季會得到這樣的結果？

So also for next year, we still expect to get the grant from the government.

所以明年我們仍然希望能得到政府的資助。

Is it sorry, is that a continuing every quarter or is it just you get once a year, you'll get this grant?

抱歉，這是每個季度都會持續的，還是每年一次，您會得到這筆補助金？

No. It's part of the plan that we are getting a for this year and also for next year. The payment is depending on the timing. But in general, it's agreed to plan that also following us next year.

不。這是我們今年和明年計劃的一部分。付款取決於時間。但總體而言，我們同意明年也進行同樣的計劃。

And then the press release also mentions that you need $20 million of funding to execute your 2024 plan. When do you need to get that funding by? Is that by midyear next year? Is that by January 1 that you need to get that $20 million? And what are your current options to get that needed funding?

然後新聞稿還提到，您需要 2000 萬美元的資金來執行您的 2024 年計劃。您需要在什麼時候獲得這筆資金？是明年年中嗎？您需要在 1 月 1 日之前拿到那 2000 萬美元嗎？您目前有哪些選擇來獲得所需的資金？

So it's our decision when to take, right. It's based on the way that we prefer to walk. We want to be in the safe side all the time. We reported right now that we have a liquidity of $100 million, and that is before the additional $8 million that we raised after at the end of the quarter.

所以，什麼時候採取是我們的決定，對吧。它是基於我們喜歡的步行方式。我們希望始終保持安全。我們現在報告稱，我們的流動資金為 1 億美元，這還不包括我們在本季末籌集的額外 800 萬美元。

So it's not that we need money tomorrow morning, or we have any issue of liquidity in total. But generally speaking, we want to be always on the safe side when we are planning the next year ahead and when we want to make sure that we that we of all the capital in our demand we need upfront before we are starting the mass production in the US.

所以並不是說我們明天早上就需要錢，或者說我們整體上有流動性問題。但總的來說，當我們計劃未來一年時，當我們想要確保我們在開始大規模生產之前預先擁有我們需求中所需的所有資本時，我們希望始終保持安全。美國。

Will you be able to hit your target of getting capacity ramp at the end of next year without the $20 million?

如果沒有 2,000 萬美元，您能否達成明年底產能提升的目標？

No. In order to ramp up to the amount of size that we want to, we will need to raise over the next year the additional funding of $20 million.

不會。為了達到我們想要的規模，我們需要在明年籌集 2000 萬美元的額外資金。

And then just in general, if you could just remind us how should we think about the multiyear outlook of sort of volume growth? So you're talking about breakeven, but that's the low hundreds, so hundreds and then, and we kind of progress to the low thousands over the next year.

總的來說，您能否提醒我們，我們應該如何考慮銷售成長的多年前景？所以你說的是損益平衡，但那是低幾百，然後幾百，我們明年會進步到低幾千。

So I feel equally divided to the breakeven on the gross margin and then positive EBITDA in general. So in order to have a breakeven on the gross margin on the bone-level, we need the low hundreds of vehicles. This is the way that we have planned based on our CapEx slide model.

因此，我認為毛利率的損益平衡和整體上的正 EBITDA 是同等重要的。因此，為了在整體毛利率上實現盈虧平衡，我們需要數百輛汽車。這是我們根據資本支出幻燈片模型規劃的方式。

In order to be in positive EBITDA, which means in general, a positive cash flow as a company will need to gain low thousands of vehicles in that phase.

為了實現正 EBITDA，這意味著一般來說，公司需要在該階段獲得數千輛汽車才能實現正現金流。

And when you're thinking low thousands will be a couple of years out or?

當你認為幾年後就會有幾千人？

So I think clearly our plan is we, as we said, to the market that we plan to be in the low thousand vehicle, somewhere in the year 2025, which means we aim to be in the breakeven EBITDA in the last quarter of year 2025.

因此，我認為顯然我們的計劃是，正如我們所說，我們計劃在 2025 年的某個時間推出低千輛汽車，這意味著我們的目標是在 2025 年最後一個季度實現盈虧平衡 EBITDA 。

Okay, great. Thanks for taking my questions,.

好的，太好了。感謝您回答我的問題。

Jeffrey Osborne, TD Cowen.

傑弗裡·奧斯本，TD·考恩。

Thank you. Good afternoon. Daniel, I was wondering if you could just be more specific on the FMVSS. and CARB timing. Is that something you would expect in the next month or two? And then I'm just trying to understand once that's achieved how quickly we should anticipate a final nomination of a contract manufacturer to be named, and then once that is named how quickly they could ramp up?

謝謝。午安.丹尼爾，我想知道您能否更具體地介紹 FMVSS。和 CARB 時間。這是您在接下來的一兩個月內所期望的事情嗎？然後我只是想了解，一旦實現這一點，我們應該以多快的速度預期合約製造商的最終提名，然後一旦命名，他們可以多快加速？

Yes, of course and good morning, thank you. And these are actually two great questions because they also came quite high with our retail question that we received. So good opportunity to answer that as well on.

是的，當然，早安，謝謝。這其實是兩個很好的問題，因為我們收到的零售問題也提出了很高的要求。這是回答這個問題的好機會。

So to your first question on, I'll start and probably Josh can step in, but we will be we're planning to deliver first pilot vehicles, demo vehicles to customers or ship them actually this year. That means we intend to claim that this year, as in 2023 before we ship, right, because you can ship them without. So that's how quickly we're talking about. And we're in the very last stages of doing that.

因此，對於您的第一個問題，我將開始，也許喬許可以介入，但我們計劃在今年向客戶交付第一批試點車輛、演示車輛或實際發貨。這意味著我們打算在今年（即 2023 年我們發貨之前）聲明這一點，因為您可以在不發貨的情況下發貨。這就是我們談論的速度。我們正處於這方面的最後階段。

And that's on the heels of you know, the previously announced x-by-wire feasibility that was a very big milestone that we had and I think last quarter. So that on your first question.

緊隨您知道的是，先前宣布的線控可行性是我們在上個季度實現的一個非常重要的里程碑。關於你的第一個問題。

On the second one, I think, we want to be nominating them the CM early next year because we want to start ramping up. As we said for the end of the year when the production tooling comes online. But, Josh do want to shed some more color on that maybe.

關於第二個，我認為，我們希望明年初提名他們為首席部長，因為我們希望開始加強。正如我們在年底生產工具上線時所說的。但是，喬許確實想對此進行更多的闡述。

Yes, we're in the -- CM again. We're in the final stages of negotiations with very capable partners to some of the P7 in the US. Again, keep in mind, we're on a CapEx light strategy, both internally and with the CM. So and to get to 4 to 6 trucks a day, it's very light investment.

是的，我們又進入了—CM。我們正與美國一些非常有能力的合作夥伴就 P7 的談判進入最後階段。再次請記住，我們在內部和 CM 方面都採用輕資本支出策略。因此，每天要運輸 4 到 6 輛卡車，投資非常小。

It will be a heavily manual assembly with the technical tooling for traceability, quality and things like that. So we believe as long as we're nominating by Q1, we can easily get up to that plan at CM. And we will be announcing that ASAP and to everybody.

這將是一個大量的手工組裝過程，並使用用於可追溯性、品質等的技術工具。因此，我們相信，只要我們在第一季提名，我們就可以輕鬆地在 CM 完成該計劃。我們將盡快向所有人宣布這項消息。

That's helpful, Josh. And then the $20 million of expenditures needed is any of that for the CM or is that once the CMs name that tooling is put in place that I assume any CapEx was on their dime in exchange for a commitment? I'm just trying to understand sort of the timing of when that $20 million is needed similar to Colin's question?

這很有幫助，喬許。然後，所需的 2000 萬美元支出是 CM 的任何支出，還是一旦 CM 指定工具到位，我認為任何資本支出都在他們的一毛錢上以換取承諾？我只是想了解何時需要 2000 萬美元，類似科林的問題？

Yaron here again. So the funding of $20 million, mainly for the CapEx investment in the tooling. And in general, we have enough resources to start to make all the investment without raising the funding, right? We have $100 million as we just reported.

亞龍又來了。因此，2000萬美元的資金主要用於工具的資本支出投資。總的來說，我們有足夠的資源來開始進行所有投資，而無需籌集資金，對吧？正如我們剛剛報導的那樣，我們有 1 億美元。

The general issue for us is to raise additional funding, not because we don't have money for the tolling just because we want to pay also the bond cost upfront and to be always on the safe side and not to get any risk at all. And when we are starting the mass production.

我們面臨的普遍問題是籌集額外資金，而不是因為我們沒有錢支付通行費，只是因為我們想預先支付債券成本，並且始終保持安全，完全不承擔任何風險。當我們開始批量生產時。

From general, we'd like to do it as fast as we can. But it's always depending on the situation in the market and to know that we have an issue that we need to do tomorrow morning. We'll do it overtime pay based on the market conditions.

總的來說，我們希望盡快完成。但這始終取決於市場狀況，並且要知道我們有一個明天早上需要處理的問題。我們會根據市場狀況發放加班費。

Got it. My last question is just as the Carlton on the Board and Tail and the team are out speaking of fleets, what readiness certainly they have on charging, you're hearing stories of 12, 18 months delays in quoting and charging infrastructure.

知道了。我的最後一個問題是，正如董事會和 Tail 的 Carlton 以及團隊正在談論車隊一樣，他們在充電方面的準備情況如何，您會聽到報價和充電基礎設施延遲 12 到 18 個月的故事。

So it's great that you have all the dealers. But as the dealers look to sell directly two fleets or you're approaching fleets direct as well, are they already going through the process of putting in charging requests with their local utilities given the interconnection delays? Or is that a potential roadblock that might stunt growth in the second half of the year?

因此，擁有所有經銷商真是太好了。但是，當經銷商希望直接出售兩個車隊，或者您也直接與車隊接洽時，考慮到互連延遲，他們是否已經在向當地公用事業公司提出充電請求？或者這是否是一個可能阻礙下半年成長的潛在障礙？

Yeah. Great question and answer is yes. As I said, we're building to order, which means that all of our are very much expected talks are being awaited for, right. And we make sure that the both the dealers and their customers are fully prepared to receive them. It makes no sense for anybody for any truck to be sit idle without the ability to charge.

是的。很好的問題和答案是肯定的。正如我所說，我們正在按訂單進行建設，這意味著我們所有非常期待的談判都在等待，對吧。我們確保經銷商及其客戶都做好充分準備來接收它們。對於任何人來說，任何卡車閒置而無法充電都是沒有意義的。

So we are in very close relationship with contact with our dealers and their customer through the dealers and the fleet customer thorough the dealers in order to understand what is their level of on to readiness.

因此，我們與我們的經銷商及其客戶（透過經銷商）以及車隊客戶（透過經銷商）保持著非常密切的聯繫，以了解他們的準備程度。

Some have capabilities in our some use our capabilities to connect them to our partners in charging, which we've also said publicly a while ago, and we're helping them get the right charges in place. But we're definitely prioritizing predominantly the those who are ready to receive [EV].

有些人有我們的能力，有些人利用我們的能力將他們與我們的充電夥伴連接起來，我們不久前也公開說過，我們正在幫助他們進行正確的充電。但我們肯定會優先考慮那些準備好接收 [EV] 的人。

Andres Sheppard, Cantor Fitzgerald.

安德烈斯·謝潑德，康托·菲茨杰拉德。

Hi, good morning. Good afternoon, Daniel. Thanks for taking our question and congrats on the quarter. And again, I echo everyone's best wishes. Just maybe quickly you mentioned in here, you have value were chosen for a multiyear program with them with an aerospace company. Just wondering if you might be able to give us a few more details there as to what it entails and how you see that one ramping up? Thank you.

早安.下午好，丹尼爾。感謝您提出我們的問題並祝賀本季。我再次表達大家的良好祝愿。也許您很快就在這裡提到，您被選中與航空航天公司一起進行多年計劃。只是想知道您是否可以向我們提供更多詳細信息，說明它的含義以及您如何看待該項目的發展？謝謝。

Of course. Thank you and good morning.

當然。謝謝你，早安。

So we can't provide any more detail beyond what we've shared and I am looking forward to sharing more soon. I can say that we have seen a I can say it's an autonomous program and we've seen an uptake in autonomous program that we're looking into recently.

因此，除了我們所分享的內容之外，我們無法提供更多細節，我期待著盡快分享更多資訊。我可以說，我們已經看到了一個自治計劃，而我們最近正在研究的自治計劃正在被採用。

I think that being, the I would say to our best knowledge, the most mature by-wire commercial player out there gives us the ability to support autonomy very well to our by-wire system and through those a few tests that we've run recently with several parties and I think the feedback is that, they like what they see the testing is successful, then implementation of by-wire and AD is successful. The integration is rather straightforward, which is important. And I think that speaks volumes of itself and we'll show definitely more when we can. We're very excited by that.

我認為，據我們所知，最成熟的線控商業播放器使我們能夠很好地支持我們的線控系統的自主性，並通過我們運行的一些測試最近與多方合作，我認為反饋是，他們喜歡他們所看到的測試成功，然後線控和AD 的實施也成功。整合相當簡單，這一點很重要。我認為這本身就很說明問題，我們肯定會在可能的情況下展示更多內容。我們對此感到非常興奮。

And maybe as a second question, I wanted to come back to the road map, the 2 phase roadmap that you provided last quarter. I just wanted to confirm you are still targeting about $1 billion in cumulative sales between 2024 and 2026? And is the goal there? I think in the past you had mentioned targeting breakeven gross margins by the end of 2024. So just wanted to see if any changes there. That's still the case. Thank you.

也許作為第二個問題，我想回到路線圖，也就是您上季提供的兩階段路線圖。我只是想確認一下，你們仍然設定 2024 年至 2026 年累計銷售額約 10 億美元的目標嗎？目標在那裡嗎？我想您過去曾提到到 2024 年底實現盈虧平衡的毛利率。所以只是想看看是否有任何變化。情況依然如此。謝謝。

Hi, Yaron here again. So currently, we are not changing the target. We don't see any reason to change an information we gave until now for the market in. We are working based on the plan. And just as a reminder, when we are talking about $1 billion of revenues, we are talking about thousands of vehicle. This is what is needed in order to reach that amount of sales.

嗨，亞龍又來了。所以目前我們不會改變目標。我們認為沒有任何理由改變我們迄今為止為市場提供的資訊。我們正在根據計劃開展工作。提醒一下，當我們談論 10 億美元的收入時，我們談論的是數千輛汽車。這是達到該銷售額所需要的。

And when we are talking about a breakeven. It's on the low hundreds of vehicles in and we plan to start and the mass production in the US by the end of year 2024. When we started the year already on the first batch, we should have a breakeven gross margin. And as we are increasing the production going to your 2025 onwards will go also to be in a we are aiming to be in the -- positive EBITDA in the last quarter of year 2025.

當我們談論損益平衡時。目前只有數百輛汽車，我們計劃於 2024 年底在美國開始大規模生產。當我們年初就已經生產出第一批產品時，我們應該會實現盈虧平衡的毛利率。隨著我們增加產量，從 2025 年開始，我們的目標是在 2025 年最後一個季度實現正 EBITDA。

Maybe, I'll add to that. Just two think, two points about it. So we see very strong demand. And I think, you know, being able to demonstrate that we more than doubled our order book value in just three months speaks for itself. But the fact there is very strong demand actually make it, -- we believe it makes it even more important to scale up responsibly and do it in a very in a deliberate manner.

也許，我會補充一下。只是兩個人的想法，兩點。所以我們看到需求非常強勁。我認為，能夠證明我們的訂單價值在短短三個月內增加了一倍多，這是不言而喻的。但事實上，需求非常強勁，我們相信，這使得負責任地擴大規模並以非常審慎的方式做到這一點變得更加重要。

So the idea is that we want to go and start the demo program and make sure that we've reached and touch the right points with the voice of the customers and the customers have the ability to tie it and like it right. And we feel comfortable and confident that there will form the relationship that we have.

所以我們的想法是，我們想要開始演示程序，並確保我們已經達到並觸及了客戶的聲音的正確點，並且客戶有能力將其綁定並喜歡它。我們感到很舒服並且充滿信心，我們之間的關係將會建立起來。

And then we're going to ramp up towards the second half of next year and last quarter were production tooling comes online. And again, that's delivered, as we said earlier, because this is that we expect would allow us to reach a material breakeven, which is important because it means that we are not losing money on the production of each vehicle from the beginning.

然後，我們將在明年下半年和上季開始生產工具上線。正如我們之前所說，這再次實現，因為我們期望這將使我們能夠實現實質盈虧平衡，這很重要，因為這意味著我們從一開始就不會在每輛車的生產上虧損。

And, If we're doing the low hundreds in a quarter, that naturally means we can do low thousands with more or less the same production rate over a year, right in 2025. And that will allow us, we believe, at this point in time that by the end of 2025 to get to, like Yaron said EBITDA breakeven and generating cash flow.

而且，如果我們在一個季度內生產數百件產品，這自然意味著我們可以在一年內（即2025 年）以大致相同的生產率生產數千件產品。我們相信，這將使我們能夠在這一點上如 Yaron 所說，到 2025 年底就能達到 EBITDA 損益平衡並產生現金流。

Got it. That's very helpful. And maybe one last one for me. I know we've touched on this before, but the $20 million in external funding, any sense of whether that would be something to do in the first half versus the second half of next year? And how are you thinking about in terms of equity or debt opportunities? Thank you.

知道了。這非常有幫助。也許對我來說是最後一件事。我知道我們之前已經談過這個問題，但是 2000 萬美元的外部資金，是否會在上半年和明年下半年進行？您如何看待股權或債務機會？謝謝。

Yaron here again. So it's our decision a what kind of funding to make. And we think we are in situation to we can elaborate into whatever we think is the best for our existing shareholders.

亞龍又來了。因此，我們決定提供何種資金。我們認為我們可以詳細闡述我們認為對現有股東最好的任何內容。

So when to raise debt funding in what kind of source, we will explore, we will look at it probably for the next few months and then we'll make a decision based on the terms of the market. The intention for us is to do it, not to delayed to the second half of next year because as we said in order for us to ramp up by the end of next year, we need to have everything in place and also all the bonds that we need to be ordered well and therefore, the aim is to do it the latest by half of this year.

因此，何時以何種來源籌集債務資金，我們將探討，我們可能會在接下來的幾個月內進行研究，然後我們將根據市場條款做出決定。我們的目的是做到這一點，而不是推遲到明年下半年，因為正如我們所說，為了讓我們在明年年底之前加速發展，我們需要把一切都準備就緒，並且所有債券都準備就緒。我們需要很好地訂購，因此，我們的目標是最晚在今年一半之前完成。

Got it. Thank you very much. Congrats again. I'll pass it on. Thank you.

知道了。非常感謝。再次恭喜。我會把它傳遞下去。謝謝。

Thank you. I would now like to turn the conference back to Daniel Barel for closing remarks.

謝謝。現在我想請丹尼爾·巴雷爾（Daniel Barel）致閉幕詞。

Thank you, operator. So first of all, thank you, everybody, for taking the time, and thank you for the great questions. I'd like to thank, I think start by thanking our retail shareholders for their questions submitted over the technology platform over the past week and I believe we addressed most of them during this quick Q&A session. Thank you, guys for the continued support from.

謝謝你，接線生。首先，感謝大家抽出寶貴的時間，也感謝大家提出了很好的問題。我想先感謝我們的零售股東在過去一周透過科技平台提交的問題，我相信我們在這次快速問答環節中解決了其中的大部分問題。謝謝大家一直以來的支持。

I want to end today's call with the final award of thanks, really -- thanks. Thanks to our teams around the world and continue to deliver even in the most challenging situation. And I'm very proud of you guys all team REE, for doing that and excited to bring you know the hard work and dedication to fruition in the coming days.

我想以最後的感謝來結束今天的通話，真的——謝謝。感謝我們遍布世界各地的團隊，即使在最具挑戰性的情況下也能繼續交付。我為 REE 團隊的所有人感到非常自豪，因為你們做到了這一點，並很高興讓你們知道在未來幾天裡為取得成果而付出的辛勤工作和奉獻精神。

So looking forward to sharing updates with everybody soon, and thank you again for joining. Goodbye.

因此，期待盡快與大家分享最新動態，並再次感謝您的加入。再見。

This concludes today's conference call. Thank you for participating you may now disconnect.

今天的電話會議到此結束。感謝您的參與，您現在可以斷開連接。