REE Automotive Ltd.

Good day and thank you for standing by. Welcome to the re-automotive Q2 2023 financial results conference call. At this time all participants are in listen-only mode. After the speaker's presentation there will be a question and answer session. To ask a question during the session you will need to press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question please press star 1 and 1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Kamal Hamid, Vice President of Investor Relations. Please go ahead.

Thank you, Operator, and thank you all for joining our second quarter 2023 conference call. We hope that you have 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. 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 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, 2023, with the Securities and 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. At this point, I'll turn the call over to Daniel Burrell, our CEO and co-founder.

Thank you, Kamal. Hello, everybody, and thank you for joining us today. Halfway through 2023, we continue to make steady progress and we remain disciplined, both operationally and financially, as we focus on our execution of our P7 program. This morning, we announced that we have achieved one of our most important technology milestones to date, following months of testing. we confirmed that it is feasible for our X-by-wire system to pass the required FMVSS certification, a key step in our roadmap to delivering certified vehicles. Being the first to market with full X-by-wire system sets a high bar. So in order to prove feasibility, we contracted Horiba Myra, a world leader in testing, to perform internal tests modeling certain FMVSS certification requirements. We have already started to build our certification intent P7 fleet and are on track to initiate the next phase of the full certification process of P7 vehicles. We have progressed with the certification plan and are targeting delivery of our first pilot vehicles by the end of this year while ensuring they are safe, reliable electric trucks that dealers and fleet owners can depend on. Our confidence in our vehicles, combined with our discussions with dealers and fleet customers, make us confident in our business plan, which claims to reach cumulative sales of $1 billion over to 2024 to 2026 by executing on our production plan, as shared in our secure order letter. As we continue to build out our dealer network, which now covers the entire U.S. and our recent expansion into Canada, we see demand for our commercial electric trucks coming from both incentivized and non-incentivized states, as charging infrastructures continues to become more accessible to fleet owners. In addition, in commercial trucking industry, after-sales service is key And we also see demand growth from our ability to simplify service with our quick re-corner swap, with fleet and dealers only having to keep a single service part in their inventory, the re-corner, which intends to increase uptime of our trucks and lower the cost of customers' inventory and its costs of management. As a customer-centric company, we listen to our current and potential customers to expand our P7 offering with full vehicle solutions, including boxes, service bodies, and platform bodies. Therefore, as we shared yesterday, we are growing our collaboration with market-leading work truck body manufacturers, such as Nepi, Morgan Truck Body, and others, all planned to be available in 2024. We have already delivered our first P7S prototype to one of our existing US fleet customers for their initial internal closed-track test with the help of our on-site and remote support team as we jointly develop a complete electric protract that will pave the way for potential future purchases. The P7 lineup uses software-based X-by-Y system which will use over-the-air capabilities that allow for continuous vehicle improvements and updates, continuous rolling out of new features and options, and remote diagnostics, often negating the need to return to a service center to future improve uptime. Our system architecture, coupled with data as a service capability, is intended to allow customers to manage fleet performance gather any data required for incentive compliance, and forecast and predict maintenance. We ended the second quarter with liquidity of $105 million, comprised of cash, cash equivalent, and short-term investment. As part of our efforts to secure 2024 capital needs in advance, After the end of Q2, we have established a $35 million ATM program and secured a bank facility of $15 million. Before we open it up for questions, I want to stress that we are aware of the market condition in general and the EV industry in particular. We see strong demand for electric truck driven by both organic demand as well as the federal and state incentives throughout the U.S. and we understand our customers and the market expect us to deliver. We are laser-focused on bringing the best commercial EV to the market, and we have the right team and technology. We believe our stakeholders, customers, and investors will see long-term value creation because of our unique technology, IP, operational focus, and disciplined approach. Operator, please open the line for questions, and I'm going to be joined by our Chief Financial Officer, Jeroen Zaltzman, our Chief Business Officer, Tali Miller, and Josh Tech, our Chief Operating Officer.