Fisker Inc.

Good evening. Thank you for attending today's Fisker Inc. third quarter 2021 earnings call. My name is Erin and I will be the moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. If you would like to ask a question, please press star 1 on your telephone keypad. I would now like to pass the conference over to your host, Dan Galves with Fisker. Thank you, Mr. Galves. You may proceed.

Thanks a lot, Aaron, and welcome, everyone, to Fisker's earnings call. Joining me on the call today, as usual, are Henrik Fisker, Chief Executive Officer, Dr. Bukhar Thunka, Chief Technology Officer, and Dr. Gita Gupta-Fisker, Chief Financial Officer and Chief Operating Officer. Before turning it over to Henrik, be advised we will make forward-looking statements within the meaning of the federal securities laws. Forward-looking statements generally relate to future events or future financial or operating performance. not materialize. Actual results and financial periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These risks include those set forth in the press release we issued earlier today, as well as those more fully described in our filings with the Securities and Exchange Commission. The forward-looking statements in this presentation are based on information available to us as of today. We disclaim any obligation to update any forward-looking statements except as required by law. will reference our financial measures that do not conform to generally accepted accounting principles or GAAP during today's call, including non-GAAP operating expenses. This information may be calculated differently than the non-GAAP data presented by other companies. Quantitative reconciliation of non-GAAP financial information to the directly comparable GAAP financial information appears in today's earnings release. With that, I'm happy to turn the call over to Henrik.

Thank you, Dan. Welcome, everybody. I've got some real interesting news I want to share in the end of my presentation, but I'll just start with some high-level bullets around the business. We are still on target with the ocean to launch it in November next year. In fact, we're going to start ramping up the prototype built with Magna already in Q1 next year. We have, of course, already made some prototypes, but from about end of Q1 next year, we expect to start building two vehicles a day. I think that's pretty outstanding, well over eight months before we launch the vehicle, and that will make sure when we launch, we can ramp up quickly into the high-quality vehicles, and that's on target. We also now hired a lot more people. We continue to hire probably somewhere between 20 to sometimes 30 people a month. And we have well over 300 people in the company now. Our balance sheet remains solid with about $1.4 billion in cash. And also we continue to accelerate our reservations. And I'll talk a little bit about our marketing push as well. But just gearing up to the unveil of the ocean here at the LA Auto Show, where the PR day starts at 17. But we'll actually have a special event the day before, which we will stream worldwide. So we are really excited about that. We're going to talk a little bit more about that closer to that event day. We also have gone into a validation phase that will discuss and get a little bit more into detail about. And then, of course, at the show, Where we are in LA Auto Show, we are going to really talk about the specifications of the vehicle, show our brand new designed interior with some pretty amazing features, definitely some that currently don't exist in any vehicle today. So I'm super excited about that. Also, we have made progress on the PAIR program, and actually our internal team have come up with an expanded strategy around our FFPAT development method. And what we are looking at is much more FISCA IP sharing between the ocean and the PAIR, meaning a lot more components that we have developed and created IP on throughout the ocean program. And what that means to the ocean is that when we launch the pair in 24, we are going to start being able to use some of these components in both vehicles in much higher volume that ultimately will actually lower the oceans, build the materials, the cost of the ocean even more. So I'm also really excited about that. Let me get to marketing and sales. We have expanded the team dramatically. We have hired an agency which we are working with creating marketing materials. We are really waiting to, of course, kick off our big marketing push to around the 17th of November when we show the car. We obviously need it. the vehicles to feature in advertising online, digital media, et cetera. And all this is in the works right now. We are going to launch both in U.S. and Europe major campaigns. I think they have some real cool stuff, and I'm really excited about it. And that's going to go full blast from 17th of November, and I expect that we will start seeing major acceleration in our reservations at that point in time as we obviously got to get more known across both the U.S. and Europe. We've also made progress on ESG initiatives, and we are really looking at wanting to be able to explain more details and use real primary data about the full cradle-to-cradle lifecycle analytics. And as we get closer to our startup production, we'll get more into details on that. Now, let me return to sort of the real big news here, which is our new signed deal with CATL for batteries. And I want to elaborate a little bit about why this is such a big deal. We are going to launch very uniquely the Fisker Ocean with two different battery chemistries, of course, two different packs. And they already are running tests on these packs. Of course, they're going into all the prototypes as well next year. But what's unique about these two different packs is the base pack actually is amazing when it comes to cost because it's using LFP, and that's a much lower cost. And that's how we are partly able to achieve the low cost of the fiscal erosion, specifically in that base price of $37,499, which I think is unrivaled by any competitor. Also, the type of range you're going to have there is going to be more than adequate, probably for most people, and quite good, actually. And then, of course, we have the second battery, which is NMC. And the advances of that battery is not only in the cell, but really in the pack, and also what we have done with the structure of the vehicle in terms of the design of the pack itself. So our pack is not the space of our pack. It's not the typical square space you see in every single EV out there. It has a slightly different design. configuration, which we're not planning to show off to our competitors too soon. But what it allows us to do is get the world's longest range in our segment for an SUV and in our price class. Of course, you can make a $150,000, $200,000 car with incredible range, but to make a vehicle between $50,000 and $60,000 with such a long race that we have achieved, I think it's really magnificent, and it really shows what a phenomenal engineering team they have, great partnership we're having with And I'm really excited to show those numbers at the LA Auto Show. In fact, we will have models that people can choose between. We've got the Sport model, which will have the LFP battery. extremely well-priced. And then we have the two other models, which we'll reveal the names of at the LA Auto Show. But both of those two will have the longest range in this segment. And as you know right now, the longest range for sale here in the U.S. and so that $50,000 to $60,000 for either an SUV or crossover is about 326 miles. And we'll be well over that with both these two other vehicles. And I'm really excited about that. uh what's also unique about our powertrain is is the efficiency because in the end of the day we have an suv i didn't want to you know sort of skip out here and just do another hatchback crossover with great aerodynamics that doesn't really look that great we wanted to create a vehicle that can sell globally in the fastest growing market in the world which is suvs that's what people love they love the utility they love the looks and that's what we're going for we want to be different than our competitors And despite having that larger SUV vehicle, but all the utility that comes with it, we still have a vehicle that's class leading in range. And of course, as I mentioned, it's partly to do with CHL. It's partly to do with our energy dense battery pack. It's partly to do with how our vehicle actually is designed and engineered in terms of the space of the battery. And then our incredible powertrain, which we're going to talk more about, at the LAO show as well. But one thing I will say that we haven't announced yet is that every version of the Ocean will have silicon carbide inverters, also the base vehicle. And that is part of what contributes to our really, really high performance powertrain, long range, really efficient. And I think what's interesting here is why would we be ahead of the competition? Well, we chose all this technology this year. So when you get a Fisker Ocean in 12 months from now, your technology is the newest of the newest. If you buy any other car next year, most likely that technology was chosen three years ago. So that's why we're different, and that's why we're going to be fascinating. And I want to hand it over to Bukhar to talk a little bit more about the details of what we're doing on the ocean program. Bukhar?