RIDE - Earnings call transcript Q2 2021

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Lordstown Motors Second Quarter 2021 Earnings Conference call. At this time, all participant lines are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. To ask a question during the session, [Operator Instructions] Please be advised that today's conference may be recorded. [Operator Instructions] I would now like to hand the conference over to your host today. Capital Investor of Head Driscoll, Markets Relations. and Carter go ahead sir. Please,

Carter Driscoll

supplement thank Operator. XXXX all The press go release Good view you, deck. website you our Earnings discussion. IR to afternoon. call. and second-quarter Thank our Motors, And to to Please Lordstown for Conference investor today's joining

update. Forward-looking identifies to are posted are on statements. Factors website and Before want attention cause to our that call we actual begin, provision Safe the differ statements to of Safe our that may materially quarterly part your Forward-looking Risk content I Harbor Harbor provision for results our of our from

the For flows we uncertainties, by Form our the difficulty XX-Q future in and reasons in SEC including that other filings, predicting site outcomes.

production. Executive and Rich Motors, more will give Strand, Joining business, Roof. on Angela will by Angela we Chairwoman I'd Interim the on turn update Becky by With us Schmidt, strategic And that, update call followed a provide the the like will will cover Lordstown and remarks. President outlook CFO, to over who Angela who detailed our Rich, the today, Angela, results, closing Becky followed Strand. to then financial provide

Angela Strand

everyone us for and today. Carter, you, Thank to joining

two has in been now strengthened team leadership strategy. Our has thoughtfully go-forward for months less commercial place our than and broadened

much our to technology. identified believe value of can We we we path goal and unlock strategic physical Today, the profitability. that priorities you as facilities our our priorities strategic X on our as critical to put will have for Lordstown both about us Motors they as is these tell

highlighting our and efforts of forward. our available initiatives key are is us latest our the the leadership I start to with assets raise We Endurance will provide you capital by information to on want also the undertaking. team how that moving other additional commercialization continuing on the

tremendously we've experienced and team, our of technologies flexible large developed. the and highly breadth deep and Our plan,

call our expanded (ph), innovation of in tremendous than motor with Alafi ever hub technology. take in-wheel since designs. this to have hearing unique are I on Lordstown's team us, more moment want become about people explain. more Many about engineering has to our now of value our are the motors. you a partner we First, hub only familiar and But convinced today inherent more close its with

the integrated the drive transfer them replicating software through inside all in-wheel cases, and Our together powerfully, and differentials. controlled puts with powertrain safely, motor is engine to inefficient wheel make axles, completely Rather work efficiently. each than gas and

each past. exceptional come controls us the wheel centralized We feel all-wheel-drive the take them, since assets legacy that we tow, control approach our function at that Lordstown from or power meeting from should way the mindset clean-sheet no tying a to TCO electric turning, follow build in should vehicles unrivaled believe starting truck needs. really So We new. have if and a We and it's work motor we mind a you're you about in form relentless have customer where providing with a performance, to torque, and

explain We Lordstown's to the testing, through technology market investors potential to the proposition. to and efforts customers believe more our our redoubling hub and out continued investors. technological hub now our are We will proven are more appreciate value motor motors that the unique

Lordstown suppliers, full with is factories great lines. hub with battery vertically manufacturing motor such a in trained Second, acres that completely of workforce. itself a commissioned was upgraded integrated, and our of plant on access controls prior foot to X.X XXX potential its our by kept the in highly Ohio's year, The we have plan form owner. and this it commission on rail, And unlock we soon-to-be square factory the accelerating campus. to million are Voltage a actions location our Valley, land

products. in result, we have that produce surrounding seen that are are partners, is A now and for now to decision manufacturing to are attracted Endurance multiple other the spread lead the production as significant opportunities marketplace. a campus, Lordstown. This Lordstown that, market. in for seeking both is facilities companies present This several capabilities that believe will critical Serious our than even will put, large opportunities a to factory potential to potential the with discussions our pivot we endurance Simply for of through accelerate significant truck. underway positioned But As uniquely manufacturing unlock because of potential the the is and our its up to we for more for of of Endurance new our partners many Endurance. that time more campus well-positioned our our the their is full decision portion word factory. the revenue a strategic our the of factory, as our ready-to-go become to we At ramping expect same and us. production,

penetrate in have forward of technology our leadership expanding succeed just a reason EV is deeper the it a gained believe team the address Fourth, right Endurance is is Third, fleet we are opportunity market, targeting underserved pickup pickup they're Lordstown's build Lordstown determined We initially military Initially, trucks, big commercial our have this delivery licensing Endurance lucrative skateboard understanding EV truck commercial plenty in the platform. is the can both our billion is ever markets light-duty overall and wide and more motors, even into that The ability the the competitors, is on of hub broader in marketplace. as well electric opportunities batteries, we of road the has to and for while programs, We and about one clear marketplace Endurance fleet space. the way. room potential segment particular vehicle to important brands, Lordstown subset trucks. marketplace. And With to commercial including focus than can a already big for of our direct-to-consumer convinced pickup that and and all. as electric strategically segments way. the there an $XX and believe market potential every a strengthened substantial where believe so

everyone the of generally. we for have created As month production for Shortages Lordstown are last the kinds most immune at vehicle been these and manufacturers enormous all even semiconductors traditional parts And challenges knows, has from problems. of vehicle OEMs. established not acute supply difficult

the Our stakeholders. adapt will for adapting team challenges these to our to and make is decisions to and short-term best continue

readiness. First is and foremost production

We near term. will ramping quality in a the prudently supplier ensure realities to be production accommodate and to product

our ensure capital And the infrastructure to fleet few vehicle from important as in December position commercial X, to support September customers regulatory production This larger QX, prudently, plan approvals the reasons. begin We deployments responsible X validation to and provide advance to will ramps manage the next our fortify build experience are deployment. our impacts end for launch. with challenges is X, to track we COVID the on complete early limited chain to of to QX, quarters. followed commercial required supply the selected second of January. time that by of deliveries early X, persist This further between at in be half next our commercial in charging customers necessary the and year. then fully for with with out through shortages and and particularly

Finally, strategic fifth priority. our

that be a upon embarked capital has team leadership will success. the new to ultimate ensure comprehensive effort experienced raise to necessary Our Lordstown's

the The already has to be will succeed have the steps equity We agreement first million. several for profitability. an Company to up announced what that ensure the purchase of XXX it was agreement to financing needs we believe in

of financing I over private We will you financing variety reach now options, now investments the strategic to non-dilutive Rich. other regarding we these agreements are all of turn exploring options. a look and forward including debt. new call to We updating as

Rich Schmidt

and Schmidt, Thank you, call. quality. Lordstown good on and provide I'm I of update and Rich an am on production, everyone happy engineering, afternoon to the President Angela, Motors to

First, in to place, always we in management want and changes, terms engineering. of had production team the in have, reiterate strong I

Endurance The second, status. the

crash, builds other are betas We have beta our completed our for and we validation and durability, tests. using

and achieving FVMSS standard are tests to crash for meet crash vehicle. the plan a multiple passed our requirements have five-star rating for We and

XX for and unique is and to different this the over team's crash many that has be tests years experience to vehicle, of have cars and say trucks, who in different a our I'd in world, advanced technologies. around and the beta someone far speed, OEMs and plans CAE many the vehicle As of the testimony building use design using first-pass innovation innovative

cost-efficiently. mass-scale and cost tools, quality tools production and we refine validation, mix production a which vehicles. these to and trucks and we build the equipment with will our hard of Third, lock We're needed complete, preproduction improvements. in Once soft to launching components and protect to hard are for continue

commercial We we NHTSA to validation. will steps the final use pre-production vehicles testing production. and crash for before Once go

built If well as have sub-assembly from We're in platforms, that inexpensively process vehicle a to in-house, as to will here plant. [Indiscernible] the production plant platforms be all paint retooling you flexible our and completed recall PPB's the ensure to multiple frames vehicle better with and trucks cars.

on on progress we General chassis since is have last readiness, May all installed paint September track line. substantial we The spoke. made complete. last new are also stamping, and this have We Assembly reconditioning [Indiscernible] and shop when body, for a production

X.X our about With retooling, footprint plant's the the in our feet. upfront flexibility current utilizes of considered XX% square million

motor commissioning Shipping limited vehicles build potential in skateboards others, for complete to as first partners our focus we for batteries, hub builds. for undergoing vehicle and Electric to advance as motors, hub additional on-site build and So, currently started to is vehicles, selling platforms, and other other room We well us it to propulsion. of have site LMC installing for opportunities such production as companies. the line ample

now module fully line impact The assembly battery first is pack commissioned.

increased our open capacity, partners set develop space. energy were want platforms multiple continue commercial and performance cases developed to conjunction our in to Improvements the towing opportunities in-house motors improvements we in develop efficiencies. our Alafi. the We should sizes Finally, hub broadens We motors. to within torque, motor the and involves with up different and believe use refine and

to including are that, the Becky use our at over technologies applications. and doubt of electric of customers as our look unique fleet expand the Because revolutionary ways technology, you. pickup will center innovative we to our we hand Thank discussion skateboard, be for you the that many of with many financial truck, different Our consumers vehicle to will leverageable Lordstown, through differently. take motor results. it power, in And I and have across at the no our

Rebecca Roof

before afternoon. Chief everyone Officer, today's items both Roof, Good Becky am review second address I team results to actions as Financial Thank mention Auditors' Rich. Interim you, am quarter I XXXX thank and call. also our I And want for will I joining the of concerns. some that, I other and taking note well. But our me do and to let bolster our

First, we and financial are Controller functions. adding in personnel experienced Accounting, Treasury, several

Second, control we additional tools be that will the our implementing software SOX the and are year. of support over processes that financial testing taking place balance also reporting enhance our to compliance will

are million versus In $XXX.X GAAP. we financials the net operating in $XXX.X million recorded of a Our of accordance XXXX, presented QX. second loss with quarter in

million expenses XX.X in or Our SG&A million. XX.X QX of million versus $XX.X consisted of increase in an

expenses The principally million Our expenses. expenses of driven is quarter-over-quarter $XX.X consulting, million legal, Included stock higher decrease is a payroll compensation and were QX compared SG&A X.X amounts the in $XX.X $XX.X expense. or of R&D in to million million. by QX increase in

million investigations. expenses Consulting and in QX expenses largely that We increase the same to to higher the the largely reasons vehicle in than believe fees legal higher, expenses. non-recurring nature. million were consulting and are SEC development much of X.X committee in special $X due were legal QX in Our in due

expense of in of vehicle to principally made in our XX.X were we XX expenses driven QX higher decrease in million purchases is components, completion the prior as decline result as non-recurring. for a believe adding head of For components expenses related Payroll to of those by purchases production. we as betas The lower were was million X.X product members R&D quarters. as as purchases pre-production type of limited and a that team much quarter-over-quarter million many

We the And expense increased total anticipate expenses, supplies, time activities shipping, in operating concluded. costs higher amount manufacturing offset teams. our million. were as lower development service headcount continue services fees maintenance We in by These reductions supplier of including utilities, external also experienced over should quarter-over-quarter totaling X.X million. million as building X.X of trend up by increased to also, ramp we R&D payroll for and are vehicle downwards X.X that and our

Turning $XXX the Second we to the with sheet, cash XXXX, Quarter Balance a ended of position million. total of

in million largely million, consisting assets plus and PP&E position $XXX cash We of of have our construction total $XXX progress. in

$XXX the From and and accrued and flow in $XXX.X $XX purchases operations, million payable of have equity. million $X.X cash Shareholder used and $XX.X accounts liabilities used equity assets, a total million million capital we we activities. On from expenses, Mainly activities investing cash perspective, s in from from side, in million generated liabilities. financing in

operations used today, million all in counting We ended the outstanding, approximately shares converted combined options. XXX diluted cash outstanding. shares we investments and XXX $XXX.X Our approximately have not was quarter million were outstanding warrants would If employee stock with million.

our capital instruments. from As Angela with have dilutive instrument. quickly to us this pleased future million. dilution discretion. to we utilizing we This and using $XXX And recently a We equity at of recognize gives line our mentioned, want balance less the credit notional needs an are amount raise announced is flexibility of there to capital

to with partnerships, We continuing and obtaining discussions types ATVM Program our the are including capital, unlocking as loans. Angela instruments with Loan vehicle other access Debt, Office strategic in our mentioned advanced we're regarding our of technologies Department manufacturing of exploring value. an Energy public such and parties discussions multiple or

have of past, plants the the the We strategically future. located of campus, vehicles and large a making

of our We buildings, in vehicles book and amount machinery, and equipment, land, value are million. reporting for the a $XX.X

reporting market what preparation. that the We as assets, million exceeds GAAP Lordstown invested facility, a an the of are acquired coupled additional we far we progress that construction dollars former plant in We continue have before basis. readiness on our invested and believe Motors with the when XXX.X owner fair that value billions

We of third-party appraisals this are on valuation. the in engaging opine process to

of and in and We various OEMs. credits earn to connection of we under service with in standards, registering credits. into these be tradable other the commercial Finally, selling by delivery frameworks to rules will or advantage regulatory intend can that Vehicles and Zero-Emission placement ZEV take our state federal and these sold

you. of into we of first have the vehicles model and produced such subject addition, to In X will of we option the entered terms have Model to GM out Please the XX Credit to months of our fair purchase guidance. a which related production Agreement the least of Year. our see emission to back I'll And for of equal these at turn Angela, Thank who call and a credits XX-K/A with annual the value credits. production Wherein Emissions an price and XX% closing now over description GM, additional pursuant credits. outlook during terms market which, at detailed to purchase provide such remarks, years. the debt to will

Angela Strand

Thank Becky. you,

during values aware, everyone Week, we're make to technology, we committed As teamwork, Lordstown of our transparency. and

onto guidance. Now,

factors. As expectations the expenses exceeded -- laid our expenses out and will our prior on of ramp commercial earlier the production have have indicated, for already our depend reasons management's multiple we pace

full-year We XXXX are updating for the a last that provided outlook was quarter.

expense, the fourth goods a experience in pilots, with production customer, allow mitigate achieve ramp limited for cost early QX. moving to the real-world as we favorable to targets and well supply chosen quarter prudence vehicles as First, and and a have build to number will of validation regulatory up, clearance, production demonstrations. into more gaining of risk launching and chain commercial This prior us and

for for between due XXX and prepayments guidance, XXX purchases. million from million full-year million, tool to expenditures, Second, to expect up largely XXX in we hard million XXX capital

XXX in million XX million SG&A million X to to which XXX million we compensation stock in front, XXX up to million stock XX million million expense. of of XX which to from now in up operating forecast. million million XXX R&D XXX the expense, XX On from compensation million in

of third the XXX Third, to million effect end the be in giving of a to cash million before to for XXX our at any we quarter liquidity position, our financing. range expect

above, line so explore discussions the do strategic As to remain and gives We and while if opportunities. to multiple flexibility financing noted capital strategic we needed, in us equity the access and for other financing continue will also options.

application jurisdictions. for employees for for talented their pursue due in California. to of multiple and for diligence opportunities all thank Michigan, and our Ohio, we to ATVM we We Lordstown, Irvine, credits Farmington officers Hills, and also in want grants other dedication and tax hard [Indiscernible], our seek remain across addition, an In continue an work and across

previously. to In be jobs creating that sustainability our help priorities good Valley mission to proud address and in part the are Ohio, the pickup summary, climate change We our reinforced of Voltage market to all-electric renaissance issues. full-sized bring strategic stated truck is first X by

our plan, our and production capabilities, Our importantly technology, our plant, commercialization our team.

a a seeing is and the streams. heart multiple manufacturing building are paths with vehicle numerous to and future in and you our And We plan. revenue a value additional November. business real Thank very you real again with contract and Lordstown bright. that a Company we for truck our is diverse very is unlock of opportunities, look much talking with platforms, forward with real people time to your

Carter Driscoll

now questions. Operator, will take we

Operator

Instructions] a as question. to you, the Thank a reminder Please ask by compile roster. while Q&A we stand [Operator

from of John question Bank America. comes first with the of line Murphy Our

Your line now open. is

Aileen Smith

on John. afternoon, Good Aileen everyone. is for This Smith

more a would spending that And the up wind your higher ago? have been expectations, reflects operational is incremental the significantly in a outlook now therefore, The or first as you've this maintaining When was to it is focused the the appropriate CapEx perhaps was budget the the this question increase conservative few is encompassing a XQ liquidity compare team you Purchase year. assumed Agreement, new in it outlook more something of months on interpret to what outlook with outlook than what capital on ago, few for reflects as Equity we CapEx outlook levels? in fair provided that the to months internal a there that level

Carter Driscoll

Thanks, Aileen, I appreciate the question.

Emmanuel Rosner

right you're think on the I track. Yes,

Carter Driscoll

the expenses. budget the lines this In hard we're prepayments, the of ordering before along -- of increased the the terms tools and of the

the plan in quarter. what really was back we're to So, first the

Aileen Smith

then strategic Got dig get little Okay. use an it. wanted partners within in less with a how a do for clarification. And the opening the partners? talent. into little effort to significant couple a times economics of you get or strategy partners with contract capacity more of that rather your fit. And about I into and bit to it's or to the of that those referenced as up ideal And facilities large think manufacturing you've by the more Lordstown offering working for see the either Is they

Angela Strand

exploring multiple manufacturing, Thanks they We're and disclose include assets interested can that own of addition I for have discussing question. But contracts in in how can't producing that you exploring partnerships our vehicles to so we includes broadly, the licensing with partnership that contract discussions. that are the course who were multiple leverage are OEMs in today. understand

Aileen Smith

And I talk Can search want the have development? those you've or may, the And more about management resignations. a Understood. recent changes with the and then terms CFO, some DC of bring the the one, final a of experience or if experience? process into in of some partner priorities you customer to Okay. feedback Company? with process the received Meaning technology do you a on for and CEO you candidates of of automotive new that thought in some

Angela Strand

and to for And I'll that first, and for there diverse the you present a and CFO we're so evaluating of evaluating in question. range recruitment time. active process is that we are part process take our proceeding. that the that is -- candidates an is Thank second CEO the

the that other long-term accelerate we're our just that disposal. to also to endurance, that expanded and extremely of team, The hosted also policymakers, know, really during able the you leadership been second, to we Week. for diverse not has assets a customer response our customers, unlocking we've the as And And range and the value, momentum, specifically, suppliers. response to been and Company, more was very as have understand but we XXX And viability now the to people newly full positive. committed than investors, the Lordstown of the the really they for at stakeholder that and

Aileen Smith

Okay. Great. taking That's for questions. very helpful. Thanks the

Carter Driscoll

you. Appreciate it. Thank

Angela Strand

you. Thank

Operator

you. Thank

comes from line Rosner Bank. question next Our Deutsche with Emmanuel the of

Your line is now open.

Emmanuel Rosner

afternoon, Hi, good everybody.

Carter Driscoll

doing How Emmanuel. you are

Emmanuel Rosner

doing thanks. well, Hi,

validation you're to when don't think of your you helps upcoming taking talk hear to the demand which of And terms you us of of and Just on and encouraging in beyond you in customers for about I start books. both any piloting know update the started So, actual will it's Can in productions these deliveries. shape then if terms to fourth production start able limited provide for how some delivering pilots. also that deposits? some Have customer about it anything be that early quarter, order once about it's you models? vehicles.

Angela Strand

of with. who Companies nice meet list addition you Thanks already we've specific cost in Fleet Lordstown understand working customers, customers, by you question. not [Indiscernible] the the of was be the sure and Vehicle and have we for the but ARI, way, disclosing Sure. disclosed, at we're I'm Home Agreement -- a In to It with we understanding Purchase a terms contours, We'll the their across comment. in to quarter those that ask second Carter Management Perhaps and the question, we important for the the commercial customers all are construction, to as be second fleet because we'll municipal. quarter. working as And the ramp as in -- we're the part own also they segments of well fleet, well telecom, utility, hitting to directly. of segments, they with And move first serve major of I'll as as

Carter Driscoll

of because a that customers always that's with there will the price it, order way production really will be number product Yeah. and have our in -- that, we Emmanuel. years. a most for of it capabilities with that that know, Thanks, couple never first discussed past. Were the to comfortable the truck we as point hesitant outstrip demand around the book that meets very build we've put demand We you likely and is a a comfortable our attractive, felt at What were our demand. quality is concerned specs feel

in lot that trials. expanded agreements customer a more And process We will continue involves. vehicle to as as pursue those we to get we demonstrations purchase of feedback give expect some

Emmanuel Rosner

That's fair.

just be where started are if you a on? something already If of you can orders would or coming have guess later the are you in deposits or that process? us that firm taking required that give ones sense I some that So,

Carter Driscoll

Yeah. have I always We right? terms. available, a rev We've recognition product, we're the we're have product very in mean, until said we don't meet of timeframe, still terms cautious. a we can't

agreements, pursue, purchase talked unique. become do past. all continue vehicle form will some we of to demonstrations, of -- the the are like. their include form to follow of generally different, description these as of But them closer But agreements more each So, we'll what look we about each is we've forthcoming deposits, these we so get in what those purchase they

Emmanuel Rosner

any Understood. been And turn, parts. constraints, process in on coming parts, of part chain, chain? the some the and all constraints Can in-sourcing access the some in then you which up are you second to pretty involves you actually getting in -- of production? of those ability early of just I the seeing that the what of making update update that of essentially supply some stable actually question, through the in in-sourcing to going the Have your you sort there the us supply terms additional around are needed quarterly updates, you and needed, last or prompted, think

Carter Driscoll

to have I Rich that.

Rich Schmidt

from Emmanuel. the the difference any is the Basically, different to Thank chain this supply quarter. you for question, quarter in really than last not

time. of components that We are the in-sourcing last some -- risk major potential of some or the

we skateboard, have which build the the on that of frame, us multiple to platforms multiple we vehicle motor, the gives really frame Part the and we which platforms if it brought battery that, allows than us platform time, us Endurance last to platforms multiple the building off other with can discussed hub the to. of flexibility just so technology and in-house. of flexibility truck gives the of we need build As our

Emmanuel Rosner

Understood. much. Thank you very

Carter Driscoll

Emmanuel. Thanks,

Operator

Thank you.

question from line Markets. Capital RBC the Our Joseph next Spak of with comes

now is line Your open.

Joseph Spak

afternoon, Good you. everyone. Thank

million. So, call if little you second-half XXX. your down it OpEX takes under million, to, just we that guided you cash which balance, $XXX just split we Even plug a (ph) to $XXX bit

to of calibrate So, it CapEx, the third it with here? the big quarter. OpEX you and liquidity a to quarter us makes next there's can get seem your we in cadence help target, like decline CapEx Can so really

Angela Strand

Sure. answer I'll Becky to ask question. that

Rebecca Roof

Thank you, question. you, Angela, asking Joseph, and the for thank

will So, XXX.X hard the it the and we in a year flexibility, have our CapEx the science. significant we And pre-payments change QX decisions, those pull I to is the for tooling The cash kinds that we of QX just XXXX hard outlays, in like make biggest of So large we have and one expenditures levers these to compared when strategic on CapEx in make was line. outlook we QX. our for described, when when the [Indiscernible] (ph) those will make have make in discussions, were either of yet at made prepayments market that very balance when We equity those and the quarter not credit earlier quarter we that financial QX, and in to it third partnership of what have of provided are are that liquidity, cash and how utilized of contemplated progressing. place we we this the conditions with and do is an as see when put regards is fourth much kind we late not as QX, line art year always forecasting guidance end how just

Joseph Spak

a that's Segway Maybe good the Okay. into follow-up.

So you year XX end last you quarter, -- you're said to going thought you're million. to XX to million going the

draw you do for to What the much spending, the of the do are the differently, on year? you the raised targeting end but plan e-lock have Now for e-lock. maybe year how or put you you

Rebecca Roof

follow-up. the for Thanks

just ELF we a to put create As of the lot I in flexibility said, place for ourselves.

were as in And Angela both discussions mentioned with so, progress discussion, fronts. as parties other financial multiple our and and strategic on

coupled ELF decision -- together, with see that the about we come how those spend how As line, we will the availability the our CapEx. make make decisions the under

Joseph Spak

targeting of -- you're no level, there's as today. there's cash level, your But cash no under

Carter Driscoll

just No, levers different let think because that the Becky about. talking about me was just

the So, you that's lead they because we've components vehicle commitment made to hard long get for have time to profitability, tools us to incredibly as and know. important

make to are very next today figure, trying to be. or parts. still make strategic to different year-end going optionality’s would plan. of where that but It's financial the moving to we our lot we're better -- a premature you are those we're as say. is for appropriate decisions have what months over, say, X sure we will there conscious sufficient partnership cash and have we where But X give a stand the So, we X and we us sense a execute a to little have decisions to we're And of cash

coming will We update you in appropriately weeks. the

Joseph Spak

strategic vehicles more, and it "strategic one I quarter it Strategic for prior you're now, called optionality there Strategic it's from Investment conversations, others think was even "our Okay. calling the or space. But partnerships" or Capital. last partners maybe subleasing it you then partners" interesting or And strategic sounds mentioned and building

that And is from the can to also assets. [Indiscernible] your is are that also raise the as So, more potentially strategic more they utilize is or financial then come off that capital the option, table, is -- conversations how about raises? financing opposed to likely really partnership

Angela Strand

answer great and question a the is, it's both. it's So,

financial also we as when about come investment, with partnerships, can investors. so, talk strategic And they well as

interpretation your So, I is think accurate.

Joseph Spak

you Thank much. Okay. very

Carter Driscoll

options (ph) into Joe and strategic different separate X multiple There options. multiple are would financial them, different buckets, I right?

of some come investments. with And financial those

Joseph Spak

Okay, you. thank

Carter Driscoll

Certainly.

Operator

of instructions] Jon Our the Group. Vertical line question next comes with from [Operator Lopez

Your line is now open.

Jon Lopez

like maybe apologize, It your Is ask in it and back above way. right? XXX to on directionally, much. has QX, CapEx Thanks sub guidance, the just of increase to very portions drop based like to come combined plus to QX. wanted prior and I seems in million OpEX to but then the this topic Hi. cash try XXX I that, just

Angela Strand

Becky ask answer I'll that. to

Rebecca Roof

this our don't And that's And think reiterating make will difference any a we So, between stay QX. for but classified and not CapEx currently R&D. we lot flexibility of disbursements, again, around large that until we just when disbursements. provided go that QX that's have as R&D production. I into And also are I expenditures

carefully I that very in question, answer how just the So that's optionality put your we is would place.

Carter Driscoll

it, the XQ, right? when the timing of think And about XQ. straddle Jon, of Some

the So, lead to other. some one could

it, range the we the put early in to kind October. when we the to of X tough it's second But financing parse of September the the it optionality of it. get. of there. move our stretch is of there's to to half So, to quarter, were delineate you could it able movement and And quarter going be types third Though filings trying of also without have have gets part end some the from a bucket, third that of anticipation we and this

Jon Lopez

I see.

that helps. Okay,

X if ones quick I they other Sorry, will be had could, hopefully, quick. I

the like the Secondly, of commercial second messaging it calendar is XXXX. shifted production is sounds to quarter now

there, my suppose being incorrectly, and timing. could if sort a being large that on of -- of management's prior you pushed competitor's now question was interpreting I me. just of a correct on So, production to that focus lot underlying you you're I'm the commercial early extent top is, that please the first, layering

do talk Does how view for think that So maybe second you dynamics just these opportunities, could? that? we about initial influence opportunity, of the to the your longer-term if a

Carter Driscoll

It's a question. great

Angela Strand

commercial that with ramp will make QX. -- commercial production and begins I Thank correct you. you're The distinction production

I'll options, TCO a However, establish with market of be in what fleet on limited management for in our will is customers configurations, fleet players. to particularly the a the vehicles. performance as that production there plan very companies fleet is really well-positioned and prepared space. first-to-market, very, multiple the performance share. leading room large, customers heard the we be will deploying And that underserved And from vehicle, I are of in make vehicles And in there's we've market based QX the the commercial mentioned the still remarks, the distinction it's and the quality to a be that number

Jon Lopez

hub you seem And Got suppose which Understood. some the a maybe development referencing one is guys there. I bit a second, my is to I opportunities past workhorse itself, to potentially be a is And LLC, our [Indiscernible] that for understanding quick core My more. heard I for your thereof do you're sort motors highlighting technology one another. very guys then some licensing times. you But talk I you. want also guess this, here or which I last some you licensing paying question few think

is, is license? the to sorry exactly like, So, question this yours something thing for license what to here

Angela Strand

question. for the Thanks

configurations skateboard. we're into unique the to we our have licensing work in Alafi Alafi and a with integrated and So, with you expanded, not are developed, partnership and only correct as continuing hub, we hub the but that applications, for

levers there, interested configurations. are and And so, are different there multiple partners we're pulling different as that customers in

Jon Lopez

thoughts. Thank you for Okay, much your very understood.

Carter Driscoll

Thanks, Jon.

Angela Strand

You're welcome.

Operator

Thank you. There are the remarks. call closing over no turn further questions. I Strand would now to Angela for

Angela Strand

all to of in with we today, your again, support Motors, look again Lordstown you team your of forward at November. and Thank behalf we speaking you everyone. our time, On appreciate

Operator

conference you Ladies participation. your today's Thank this and call. gentlemen, concludes for

may You disconnect. now

Nu Ride (NRDE) 12 Aug 212021 Q2 Earnings call transcript