REE Automotive Ltd.

Thank you all for joining our second quarter 2022 conference call. We hope that you have seen our press release and investor presentation issued earlier this morning at investors.ree.oto. We will be referring to the presentation during the webcast today. 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. Please note that the company's actual results may be different from other anticipated by such forward-looking statements for a variety of reasons, many of which are beyond our control. Please refer to the company's Form 20F filed on March 28, 2022, with the Securities and Exchange Commission, which identifies the principal risks and uncertainties that could affect our business prospects and future results. We assume no obligation to update publicly any forward-looking statements except as required by law. In addition, we will be discussing or providing certain non-GAAP financial measures today, including adjusted EBITDA, non-GAAP net loss, and non-GAAP EPS. Please see our earning release for reconciliation of these non-GAAP measures to their most directly comparable GAAP measures. Joining me today is our co-founder and CEO, Danielle Barrell, who will provide an overview of our business. Josh Tech, our COO, will then provide you with an operations update. Our CFO, David Goldberg, will continue with a discussion on our financial results and outlook. After that, we will open up the call for Q&A. At this point, I will turn the call over to Daniel. Daniel, please.

Thank you, Limor. Good morning and welcome to our second quarter 2022 earning call. I will begin the call by providing you with an update on the progress we are making towards commercialization of two separate P7 products as we focus on converting our pipeline into backlog. Moving to slide four, I would like to begin by saying that we had a strong second quarter during which we continued to execute our business plan in a disciplined manner. REE had two main goals for the quarter. The first was to receive customer input on the P7 product line. The feedback we have received from leading commercial fleet operators and owners in North America and Europe has been very positive. As customer evaluation progress, we are seeing strong interest in electric vehicle powered by REE and we expect to receive firm orders in the next few months and to start delivering test fleets to our customers. Delivering test fleets to customers is a critical milestone on the path to scale adaptation of powered by REIT vehicles. Commercial owners and operators are highly sensitive to vehicle uptime, durability, and efficiency. Introducing new vehicles into fleets must make sense from a business and operational perspective, and the only way to reach scale adoption of a new vehicle is by introducing a test fleet and having this test fleet operate as well or better than current options. This is the path to firm follow-on orders in significant quantities. We will only announce firm orders going forward. In addition to pounding the ground and deploying test fleets powered by REIT, regulatory tailwinds, such as the recent Inflation Reduction Act, are supporting the shift of major commercial fleets to electric vehicles. We are actively assessing the potential benefits of the IRA to our business. The second goal was to continue the development of our production capacity. We have made great strides in building out our initial integration center. As Josh will describe shortly, as we progress, for the initial capacity of 10,000 vehicle sets this year. The launch of our second integration center is also progressing. When complete, this facility will double our production capacity to 20,000 vehicle sets annually. Development of both integration centers are on track and on budget. Moving to slide five. As you may recall, our P7 platform which we revealed at the beginning of this year, is a modular platform designed to accommodate commercial vehicles from Class 3 to 5. Since that reveal, we have debuted two full vehicles, both powered by our P7 platform. As many of our listeners today are aware, we hosted an investor event two weeks ago, during which we showcased the Proxima powered by REIT, a Class 5 walk-in van, and the industry's first fully-by-wire commercial vehicle. This event followed a series of evaluations by prospective fleet customers with leading positions across delivery, logistics, and retail segments. In addition, we have been testing and showcasing the P7B, a Class 3 box truck, at our UK Engineering Center for several months now. For those of you who might have missed it, recent announcements and the investor event I'll take a moment to describe some of those two EVs benefits. On slide six, Proxima powered by REIT is the most advanced walk-in van in existence. The body is designed by EAVX and built by Morgan Olson, both subsidiaries of GAB Poindexter, a company with significant market share and a multi-decade track record in upfitting commercial vehicles. REE, the manufacturer of record, provides the backbone of the vehicle. The technical benefits of our chassis coupled with the commercial domain expertise and state-of-the-art body by Morgan Olson deliver what customers and their drivers are looking for, efficient and durable electrified vehicle that can be optimized for specific use cases resulting in attractive economy. Proxima powered by REE has many technical attributes that provide real-world benefits to fleet owners. During evaluations, we heard from potential customers that they appreciate these game-changing advantages that include enhanced maneuverability and safety with all-wheel steer and all-wheel drive, low stepping height, for efficient delivery cycle times and agronomics that reduce driver distraction, providing fleet efficiencies and driver win. Proxima powered by REE has many other amazing features, and I encourage you to watch the replay of the investor event on our website if you have not done so. Moving to slide seven. On the back of the customer evaluation of Proxima Power by REIT, we expect to receive firm orders for test fleets from multiple customers, and we look forward to sharing more with you soon. These test fleets will be used for real-world evaluation by our customers. Some of our prospective customers have very large fleets that will not be electrified all at once and without significant testing. We believe orders for test flights will mark the beginning of multiple long-term relationships and that we will receive larger orders after customers collect validating data and positive driver feedback. We're obviously not the only company competing in this area, but we believe our product is the best in class and that our go-to market partnership for the Proxima body and the P7 chassis is a real competitive advantage. Proxima Power by REIT went from concept to product design from the ground up in just one year, a very short time by industry vehicle development standards. I am very proud of both our teams for their accomplishment and for our joint commitment to electrification and carbon neutrality. Moving to slide eight, The second vehicle we unveiled, the P7B, has undergone month of positive and encouraging customer evaluation at our engineering center in the UK and is on track for 2023 production. The P7B is built on a class three P7 chassis, the same platform underlying Proxima powered by Ring. That means it delivers many of the same fleet and driver benefits, which we believe will deliver lower TCO total cost of ownership. The P7B is targeted at the important and growing mid and last mile delivery segments. The on-track testing of the P7B and extensive potential customer evaluation is a crucial step on the road to commercialization. Feedback from prospective customers has been that this is the truck they have been looking for. One that drives like a sedan and is built to deliver under the harshest commercial duty cycle. They also appreciate the flexibility of the P7 as it can be configured to best suit customer needs. We expect real world trials with customers to commence next year. Moving to slide nine, as we have demonstrated, Because of its modularity, we are able to quickly deploy our technology for a variety of applications. This allows us to access distinct go-to market channels, including designing and building our own vehicles for direct sales to fleet customers, as in the case of the P7B, and through partnerships with upfitters. As we shared before, REE is the manufacturer of record for Proxima and P7B, making us responsible for the homologation and certification of the electric platform. The homologation and certification activities are progressing on track at both the component and system level. Additionally, core control system, software and functionality, safety development, Key elements of the development of mission-specific variation enabled by Reconis are progressing according to plan. While our main focus is commercialization of P7, we have other projects in various stages of development, and we will share updates about these as appropriate. With this, I would like to pass it on to Josh for an update on our operational progress. Josh?

Thank you, Daniel, and good morning. While I met many of you at our recent IR event, this is my first earnings call at REIT. I'm very happy to be here today and share with you some updates on our operational progress. Moving to slide 11, we remain on schedule with commercialization both operationally and financially. Operationally, our core UK engineering team is now substantially built out. All key engineering functions are now in-house and process management and infrastructure is in place. Our engineering test fleet in the UK is accumulating durability miles progressing through verification and validation activities in preparation for production of design intent builds later in the fourth quarter. We are on track to hit the production capacity targets we have previously communicated. Our first assembly line will soon be installed in our Coventry UK Integration Center, which is our launch factory and blueprint for all future integration centers. It is expected to have a capacity of 10,000 vehicle sets by the end of this year. The Austin, Texas Integration Center is also underway with the shell being stood up and complete. I would add that our first integration center is nearly complete, and we have the ability to accelerate the development of our second integration center if needed by replicating the template of the first integration center. Moving to slide 12. Now I would like to give you more color on our integration centers, which will use robotic assembly cells, end-of-line electrical tests, and auto-boxing stations. An assembly cell is an alternate strategy used in manufacturing that can provide much greater flexibility and scalability than a traditional production line. These cells will make up our re-corner production lines, where automated guided vehicles will move the work-in-process product between stations for both automated and manual assembly, as well as sub-assemblies to the lines. There are several advantages to this approach. First, it provides the ability to validate all assembly cells quickly by testing and optimizing one cell and then implementing those best practices across all others, which reduces the time to design and develop additional assembly lines. Second, the module production line is also highly automated and flexible, meaning that we can scale up or down depending on future variants in demand. Finally, assembly cells and production lines can be efficiently lifted and installed at future integration centers, as well as we apply one global standard using the plug-and-play format. We are working with top supply partners on the assembly line and line site controls. This allows us to use cloud-based solutions, giving us complete visibility into all production operations and enabling us to scale manufacturing, both locally and globally, across all integration centers. These integration centers will be linked to our control center, where we can achieve an overarching view and build perspective along with full traceability of our RE solutions. With that, I'll hand over to David Goldberg, RE CFO, to discuss our financial results. David.

Thank you, Josh, and good morning. Before opening the call to Q&A, I'd like to discuss the company's results for the second quarter, then reiterate our expectations for 2022. The company reported a gap net loss of $25.2 million in the second quarter of 2022, compared to a net loss of $21.5 million in the first quarter. The increase is mainly related to lower income from warrants remeasurement, partially offset by lower operating expenses. The non-GAAP net loss of $21.3 million in the second quarter of 2022 decreased compared to $28.3 million in the first quarter of 2022, primarily due to the timing of expense recognition related to development and production capacity costs. We remain on track to meet our guidance for cash spending in 2022 at a range of $130 to $150 million, inclusive of both capital and operating expenses. This range is presented on a cash basis and is tied to the execution of our business plan. Accordingly, expenses are dependent in part on the timing and achievement of certain milestones related to the company's commercial programs and projects, and may not be linear throughout the year. Our operating expenses are mostly comprised of technical and engineering spend required to execute according to the timelines we've communicated. It is important to note that we expect engineering expenses tied to P7 to peak this year. Our budget includes investments of approximately $30 million in 2022. These investments are mainly related to establishing our integration centers. This portion of the budget is effectively committed and will continue to be incurred through the second half of 2022. I note that some of the expenses related to the establishment of initial production capacity may not be capitalized and will be recorded as operating expenses. As of June 30th, we had approximately $207 million of liquidity comprised of cash and short-term investments and no debt. We continue to have sufficient funding to execute the programs Daniel described and to advance other commercial activities. As you may have seen, earlier today the company filed a shelf registration statement We intend to allocate up to $75 million of the shelf registration to the sale of REES Class A ordinary shares in an at-the-market program once the registration statement is declared effective. The registration statement has not yet been declared effective and no sales may be offered or sold under the shelf registration until it becomes effective. We do not currently plan to issue shares under the program. As a reminder, we have a CapEx-like business model Because of this model, each of our integration centers require capital in the tens of millions of dollars, significantly less than the hundreds of millions or billions of dollars required to build a large factory typical of other OEMs. We remain focused on executing our business plan. While we believe a significant opportunity exists beyond P7, the vast majority of our budget has been allocated towards execution and commercialization of this platform in the U.S. and Europe. The cadence of our spending will be indicative of our progress, and we will continue to update our shareholders on budget expectations as the year unfolds. With that, we would like to open the call to questions. Operator?

Thank you. As a reminder, to ask a question, you will need to press star 1 1 on your telephone and wait for your name to be announced. Please stand by while we compile the Q&A roster. We will now take the next question. And the first question comes from the line of Michael from DA Davidson and Company. Please go ahead. Your line is open.

Good morning or good afternoon. Thank you. Wanted to touch quickly first on the P7B. I guess a couple questions there because it seems somewhat different than what was communicated in the past as far as the method of which will be approaching the market. Do you have to basically create an internal sales force to sell this vehicle? Is your intention instead to get dealerships or to use someone like an EAVX to be the kind of point of sale to the customer? Just some sense as to how you're going to actually truly go to market with this vehicle.

Yeah, absolutely. Thanks for the questions. It's an important one. We've always said that we are first to money, and we've always said that we have direct approach to go to the market by ourselves. However, that approach is dependent on the structure of the market in different classes. So when you look at Class 5 and when you look at walk-in vans, it is customary for the chassis to be purchased separately from the body and, of course, for the upfitters and the chassis builders to work together to supply a full vehicle to the fleet. Sorry, no, but this is the way it works traditionally, and this is how we work with EAVX and Morgan Olson, which are great, great partners with a great tracker. However, when you look at, for example, Class 3s and you look at cab chassis and box trucks, it is customary that the manufacturer of record in that example ask to manufacture the entire cab chassis. and sell it directly to the fleets on which they will later on put on a box, which they will purchase from any box manufacturer such, for example, Morgan and others. So, there is no, there has not been any change in our strategy, just different vehicle categories.

Okay. Can you discuss the margin profile differences between the P7B and the Proxima Class V? Do you anticipate a different cash cadence from each of these two?

Sorry, when you say, I mean, on margin, I think the margin profile, or at least the economics, are going to be similar across both vehicles.

Okay. All right. You know, a question I've gotten recently was, you know, just some thoughts as to how the Proxima event went a few weeks ago from a fleet or dealer perspective, those who were test driving from the industry. You've been mentioning that you have mostly positive feedback there, but were there any learnings you got from there that are gonna have you going back to the drawing board to redo parts of the vehicle, or did most people think that the vehicle as presented was gonna generally meet their needs?

Yeah. The event that we've had with Approximat, of course, you know, it was really exciting and we had really strong feedback from. But to many of those customers and leading fleets that attended, it was not entirely new because they were part of that development cycle and they were part of that design. And we've been listening to the voice of the customer from them for a very long period of time. And we've implemented significant inputs for them. So I'm very happy today and also been there to hear their feedback that this was the truck that they've been looking for. Naturally, there's always feedback for things that they would love to improve on many fronts from interior, alignment of screens to others, right? But in general, I think that we are very, very encouraged by the feedback that we've got and by the level of acceptance we've seen from those fleets.

Okay. Maybe one last one for me about pricing for the P5 Proxima. The feedback I've been hearing from some people who drove the vehicle were, this is a great vehicle, but what's it going to cost me? I don't know if you can give us a pinpoint number for what you think that truck's going to sell for, but maybe at least some sense as to the percentage increase above the comparable ICE vehicle would be appreciated.

Sure. So, naturally, since we are literally in the midst of negotiating, with quite a few fleets. I would not go into the economics of everything here. But having said that, I think we have a very appealing offering and very competitive market positioning on both vehicles, actually. Remember that we are able to price current costs as we're moving to the market. And it allows us to see a very good path to attractive economics. And one of the reasons that we're able to be that attractive is because of the CAPEX light model that helps us to reduce significant costs that are inherent in traditional OEMs other than us, of course. And I think we've also received very strong positive feedback initial pricing and long-term pricing of both P7B and Proxima. Okay. I'll leave it there. Thank you so much. Thank you.

Thank you. We will now take the next question. And the next question comes in the line of Andrew Shepard from Cantor Futural. Please go ahead. Your line is open.

Hey, guys. Congrats on the quarter, and thanks for taking my question. David, maybe one for you. Can you give us just a little more details on the shelf registration that was filed? I see that there's no intention to issue shares under the ATM facility. I'm just wondering, maybe give us some details. Obviously, this is a tough environment to raise additional capital, and so... I guess just how do you plan on using the, you know, and any timing that you could provide around that?

Yeah, I'm happy to. So really the shelf and the ATM is good housekeeping. You know, we've been a public company now for just over a year. As we said in the release or in the script, no intention to use the ATM today. And I'll remind you that, you know, from a P7 perspective, we're fully funded.

Got it. Okay. That's helpful. Thank you. And maybe as a follow-up, you know, with the integration centers becoming operational first in the UK and then the one in the U.S. next year, are there any risks to the 10,000 platforms per year capacity just given the continued supply chain disruptions? I'm wondering if you see any potential hiccups there.

Thank you. um no actually we we are on track um with everything coming online and we don't expect any hiccups uh to get to 10 000 vehicle sets by the end of the year and uh double that next year we we refirm the everything we set on on production wonderful okay thank you very much daniel uh congrats again on the quarter i'll pass it on thank you thank you so much

Thank you. We will now take the next question. Please stand by. And it comes from the line of Tyler Di Matteo, VTIG. Please go ahead. Your line is open.

Hi, everybody, and good afternoon. Thanks for taking the question. So I just have a bigger picture macro question here. So we have this two-pronged approach, right, where we're supplying the chassis to Morgan Olsen, and then we have the P7, which is our own integrated vehicle. Can you just kind of compare and contrast those strategies and how you see them really evolving and working together over the next couple of years, trying to get a sense of what that really is going to look like?

Sure. Let me try to answer that. In general, we're targeting the two largest segments in commercial vehicles, right, Class III and Class V. The difference in those vehicles is quite major because they're not only built differently, they serve different needs. And some of our Customers might have a mix of them, but they're using it differently. And I think looking at it in a holistic way and a more macro way is the right way to look at it in a sense that, you know, there is a path to bring a product to the market. So, you know, we've talked about the event in Detroit a couple of weeks ago, you know, where we've done customers' demos with leading fleets that have been very positive, right? And those customers are spending time and money on testing our vehicles. And, you know, some of them, as some of you saw, actually shared publicly what they think about those trials and the relationship, and we've been working with them for a while. As I mentioned earlier, some of those fleets and other companies and owners have been part of the development and design stages, which is very important when you create a brand-new vehicle, taking their needs and voice of the customers. And I think this is one of the key factors that we've managed to get that positive reaction from the event. Now, the next phase in bringing products to the market, in most cases, after that demo, is deploying test fleets. And since we're working with, you know, literally the largest fleets in North America and Europe, the timing of the testing phase is customer dependent. However, once testing phase is complete, we will become an approved supplier and participate in the electrification of the fleet. and benefit from significant recurring revenue. And this is relevant for both Proxima and P7B. Now, if you look at Class III and Class V, we see around 750,000 commercial trucks in Class III and V that are relevant for P7, and they all need to electrify. And, you know, although we're not the only ones in this race, From speaking to customers, there is a lot of white space. So I think, you know, the path that we're laying towards getting those both Proxima, Power by REIT, and P7B to market and to customers is really, I mean, detailed and straightforward.

Okay, great. And Daniel, just one follow-up. When you say the $750,000 for Class III and V, that's Europe and North America, correct?

Yes, correct.

Okay, perfect. And if I could just get one more in here. And this may be a question for Josh. As we think about the integration centers coming online, I know you said in the past it's kind of a template model once one's up and running and you work out the kinks. But I'm trying to get a sense of just how more quickly can we accelerate the development of one of these facilities and kind of get it up and running in terms of bringing capacity online?

Yeah, that's a good question. So realistically, we say sub-12 months, 10 to 12 months, we can do it. The real advantage is not only because the robotic cells that we have done are constantly being updated and changed from lessons learned. Basically, it becomes for us almost an off-the-shelf product because we validated it and we just order more and scale those accordingly. But the more important part is because we have the CapEx Lite model, the equipment itself, in terms of its industrialized equipment, of course, robots, and all the safety guarding and things like that, but it's not large equipment like presses and things like that where we have to do custom infrastructure. For example, we don't have to do pits or things like that on the floor. So we can use standard distribution type buildings. So even if there's no brownfield space available, even a greenfield tilt up building can be done very quickly, right? So it's like, as you can see, we're doing in Austin, the building is already complete. So that whole advantage of keeping it CapEx light not only helps with the entire supply chain,

but it also helps with the ability to bring up the infrastructure extremely quickly we need to okay great thanks guys really appreciate the time i'll turn it back to the queue here thank you thank you we will now take the next question and it comes from the line of jeff osborne from cohen and company please go ahead your line is open

Yeah, good afternoon, Daniel. A couple questions on my end. I was wondering if you could give us a sense of perspective of how many test units for Class 3 and 5 you'll be producing in the second half of the year that people will be having out on the roads late this year and early next year.

Yeah, we are currently running a fleet of P7Bs, and we intend to deploy test fleets I think in the next few months for multiple customers. Each customer test fleet is naturally customer dependent. Some of them are larger than the others. And this is, and the reason is that the idea is not to only test the vehicle itself, but to actually test how vehicles powered by REIT fit into the fleet itself, fit into the infrastructure, what's the feedback from drivers on day-to-day routines, et cetera. And the size of those fleets is mainly customer dependent. The goal for each of those fleets, however, is the same, which is proving the advantages and capabilities of those vehicles in order to allow for scale adaptation later on.

That makes sense. Just in perspective, in aggregate, would you say that's maybe 20, 30 vehicles in total, or are we talking single digits? Is there any perspective you can put in just total, not on a per fleet basis?

We have the capacity to manufacture more than that. It's a matter of the acceptance level of the fleet. So in terms of capacity, we can do hundreds and more. the important part is how many a fleet can absorb keep in mind that it's not just the reason I'm saying it it's not just the vehicle that matters right somebody needs to put in subtracted to charge it to maintain it etc there it's more than just providing the vehicles and then having the seat idle without use which of course with the sense of doing so so it's more of how fast we can set up those test leads with customers that they actually can put drivers in it and actually deliver and go out there and do the work and generate revenue for them. And then they can see how well they behave.

Got it. And then for David, I just wanted maybe a multi-part question on the cash. So I get it that P7 is fully funded and that spending peaks this year. You know, without getting the specifics on a monthly burn rate, can you give us a sense of, you know, which quarter or have we already reached the peak of development expenses for P7? It sort of gets back to the question I was trying to ask Daniel, if you're going to sink a bunch of capital into developing 40, 50, 100 vehicles to be out, you know, tested without revenue. I'm just trying to get a sense of what the cadence is of OPEX and CAPEX for the second half of the year.

Got it. So, you know, A, right, we remain disciplined. And so when you think about the guidance that we gave to the market earlier this year, we're still very much on track in that regard. And that includes the testing activities that Daniel mentioned. You know, I don't think we're giving quarterly guidance. I think this, I mean, again, I think we're just really on track for that total number for the end of the year. I think that's the best way to answer the question.

Got it. That's all I had. Thank you.

Thank you.

Thank you. We will now take the next question. Please stand by. And the next question comes from the line of Colleen Langan from Wells Fargo. Please go ahead. Your line is open.

Oh, great. Thanks for taking my questions. Just following up on the last question, so the full-year guidance, I think, is 130 to 150. I believe you're trending below that. I think it's like 55 million year-to-date. So that would imply, though, a step up in the second half, and what would be driving that? Is that the more prototypes are expected?

Yeah, okay. So there would be – I mean, it does – yeah, the math does imply a bit of a step up, but, again, I think I want to stress that we're – very much on track. So it's going to be, you know, again, we're not giving specific guidance within the range, but I would say closer to the midpoint. And then, yes, like if you think about it, we've already started some of the spending to build the test fleets that hasn't hit the P&L, but some of the cash has already gone out the door. And then also remember that as, you know, as we're engaging with customers, some of those test fleets will actually generate revenue as well.

Okay. And how should we think about it? You just demoed the vehicles. So you should get in the next three months or so orders for prototypes for test fleets. And then in six months, we would get like firm orders. Would that be the sort of cadence we should be expecting in terms of how this would come in?

Yeah. I mean, roughly it sounds reasonable that it's, The idea is this, right? There's been very positive reactions. Some of you have been there and seen some. There's been very positive reaction from customers and fleet. Now what we need to do is, you know, negotiate commercial agreements and deploy test fleets. And like David said, we expect to generate revenue. from those test leads because it's part of the adaptation of commercial vehicles, right? We don't do it for free. Having said that, I think what's important to emphasis, and I think I said it on the investor day and also we reiterate that on the PR, we intend to announce only firm orders. We've done this before and looking forward as well. So basically, orders that we intend to manufacture in the foreseen or short future, immediate future, and not, you know, general concrete or general plans that might not be . So I think the cadence is very straightforward. We negotiate terms. We deploy test fleets. Those fleets test those vehicles. for different durations of time, depends on who they are. Some test them for a few weeks, some test them for a few months. And then we move on to adaptation, right? And become an approved supplier and generate recurring revenue from recurring purchase orders.

And when you said you'd announce firm orders, that would include like an order for prototypes and test fleet, right?

Yeah. Orders means things that we've been paid for and we go and produce now.

And you mentioned it's not only buying the vans, it's also you need to actually set up the infrastructure. So who actually would take care of putting in the charging stations? And then have you announced the partners to do the servicing once these vehicles are in operation?

Yeah, that's a really good question. So thanks for it. Unfortunately, it depends on the customer. So for some of the customers, we provide a full turnkey solution. We can provide everything from charging. Also, we have partners for financing for that charging infrastructure and so on and so forth. And of course, vehicles and nationwide service locations and so on and so forth. For other fleets or other customers, they like to do everything in-house themselves. So they have their own suppliers for charging infrastructure maintenance, where we will give them the training and, of course, corners as spare parts, but they'll do the maintenance for themselves. So we are able to provide both, and we've seen a healthy mix of some that want one way and some that want the other.

And the partner, are you going to build servicing stations, or you have a strategic partner that would take care of that for you?

We have partnered with a few household names that have given us access to thousands of service locations across Europe and the U.S. Okay.

All right. Thanks for taking my questions.

Absolutely. Thank you.

Thank you. There are no more questions at this time. I would like to hand back over to management for final remarks.

Great, so thank you all for joining us today. We're always available to answer any question you might have, and we'll keep you posted of events when you can experience our game-changing vehicles for yourself. Lastly, I would like to take this opportunity and thank Team REIT for dedication and focused execution, which allows us to keep meeting our targets, even in the current volatile microenvironment, as we advance forward a more sustainable, carbon-neutral, world including a fully electric vehicle future. Thank you all so much.