RIDE - Earnings call transcript Q4 2021

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Operator

Greetings. Welcome to the Lordstown Motors Fourth Quarter and Fiscal Year 2021 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions]. is conference this note being recorded. Please time, Driscoll, Vice this Investor I'll Capital turn Carter to Relations. over conference President and the Markets At of Development, Corporate may begin. you Carter, now

Carter Driscoll

Good investor quarter and our website year-end all operator. Thank today's you To conference to deck. press fiscal and to discussion, Lordstown fourth the view please XXXX to go you, Motors for morning call. joining and supplement earnings release thank IR our

our actual provision statements quarterly harbor forward-looking other SEC Form Before and identifies attention of safe I to to is we results on by statements harbor from materially that filings, our want including your posted cause uncertainties for the safe begin, difficulty that outcomes. that forward-looking reasons call future as to our posed part update. in predicting provision content in XX-K for our website factors of risk may our the the and differ cite we The

CEO, Edward Dan. will I'd the to be over Joining Kroll. CFO, call like to Ninivaggi, that, Hightower; Dan Lordstown us With Adam and turn today Motors President;

Daniel Ninivaggi

and we've Carter, the and to in team quarter. our I'm with, results efforts I'd the their everyone. the launching entire you, Thank Lordstown To thank for with pleased the for QX. made extraordinary welcome, towards progress begin like financial Endurance

pickup one priority truck. size of launch full number Our Endurance of course successful remains the the

detail achieve third I'm we pleased underway that quarter the to will some challenges are to are pre-production production startup continue and what to homologation. report chain in or where experienced more to Ed remains supply XXXX. target be sales PPVs, and we’ve engineering our and we done provide While design building full final of on and testing validation in commercial vehicles

and given acceleration fleet of customer the vehicles for pickup continue will for electric total unique of specific among be plans, work its market truly customers With offer ownership particularly on requirements. and turning foreseeable that advantages all superior working radius and is in-wheel focus moving hard commercial interest demand to terms The traction with we will believe the will conventional trucks. types, believe motor really the the be than fleet the market Endurance future hub strong competitors’ Despite to demand, appreciate. we cost in control, torque believe EV design combination fleet grow. including propulsion their of will product In strong customers, Endurance in that more pickup in see fewer costs. handling, continue will overall also and have will underserved We we maintenance parts of truck commercial systems,

to commercial sheet need production launch anticipated primarily will volumes. be will their our limited the the be into importance price. production of customers’ driven of Endurance higher costs as year, hands significantly expected selling our with plan by bill their this balancing sales the undertake than We'll getting balance material Our manage at

to Foxconn the BOM improve other initiatives suppliers, in. transaction as Our over kick and benefits production tooling, time our moving prototype from the of will

offer on partners opportunities focused relatively to selling initially, strategically vehicles small result, a As we’re number the relationships. at long-term of who least a for best

XXXX and While to about on the in X,XXX limited BOM units units be the and I depend XXXX. including timing of to to will future vehicles production of reduction factors, produce up expect exact several cost number our would actions, XXX we in financings,

service more mentioned than call, service our X,XXX marketplace to For last centers, Cox has post-sales location we're with on as and XXX continuing partner technicians X,XXX Automotive. Cox mobile support, work nationwide. Automotive earnings

to Now, strategy. long-term turning our

success a and like in penetrate power gain the a trains innovative requires market of a the I unusual differentiated the call, capture products segments. significant deliver cost an has platform OEM brings components that presents share, that well. mentioned on plan, objectives. to with global product, particularly LMC we efficiently ambitions but us development not market. and automotive meaningful competitive I in each in these achieve The conversion commercial of vehicle to believe As earnings a very structure, Foxconn Foxconn electrified key startups our scale, EV share our a just to contract opportunity and last quickly certain market, can to partnership help underserved as manufacturing, with

built costs. Scaling time. opportunity Foxconn with the Partnership manufacturing benefits vehicles the getting other components use shared X.X are OEMs should million the to strategic combustion plant largest Foxconn also and scale Foxconn the component will benefits, more increased lower this faster. Lordstown and full integrated feet Lordstown addition complex would our to provides of is of square with and to other by the and the partnership unlock of or of acres, one North announced overhead In has to the large that already scale that open raw at internal Use the lot. automaker. matters to manufacturing been in that the smaller potential At plant excellent material, fully without achieve space, input the source costs XXX specialized OEMs intended developed, automotive the an whose has plants a being is automotive facility. converted opportunity significantly has and of common program manufactured a PEAR plant, MIH in over reduce Fisker capacity all LMC benefit together Mobility-in-Harmony having from EV America Foxconn fill a Lordstown. state-of-the-art utilization, be to platforms

have own chain to supply chain necessary supply the in world, as integrated the we and costs well our purchasing our minimize largest global better a vehicle and logistics production manufacturer us reduce significantly capabilities network contract As Foxconn help the risks. as would has than power on

expertise software their expertise also We electronics benefit in as critical manufacturer. stand from Foxconn's EVs to to given a integration and multinational hardware

we over time. should improve these together, benefits grow As only

from Foxconn the of stated LMC electric explore partnership common a platform. vehicles venture for part MIH we manufacturing the This is the contract Foxconn’s of a could Foxconn would the deal, utilizing that Finally, and with announced new we an important development the joint When scalable compete MIH transaction, and platform beyond extend agreement. will of much arrangement The would long-term off components OEMs. because use systems future us benefit of that common our with to development greatly integrated that a in us architecture vehicle larger vehicles allow provides vertically view, over vehicle LMC opportunity. for

potentially to North capital made a outside could Since call, of vehicles addition, a under with commercial agreement agreement joint new MIH contract In vehicles. substantial both develop vehicles We’ve last the vehicles earnings for we relationship connection alternatives Endurance-based MIH proposal America we with open made which the we with terms opportunities the manufacturing have up markets Foxconn LMC development have utilize Foxconn. specific and on our with of Foxconn. collaboration joint progress discussions in developed also had would for agreement, a to off and regarding the Foxconn product In raising considered development ongoing platform.

of structure challenges and of more development soon the constructive into agreement only While would at that new conclusion and I and fund to to as arrangement with element In have building have agreement have understand Foxconn this pleased with Endurance funding possible do. production of also bring greatly with us, I ongoing, raise our reached. Foxconn. joint as relationship closing, discussions overall believe the notwithstanding towards the Clearly, definitive the Endurance has and and Foxconn I we we on We front the in product been is our the progress QX. are to moving appropriate am vehicles, been enhance additional that development the with success but in important product Foxconn made our ability a capital transaction stage partnership. not work funding believe no our an a reaching for to on necessary launch-readiness this

years’ Edward vehicle a the team our has commercial the line entire our earnings after Hightower. billion Ford, turn executive over opportunity. and energized and between totally to vehicle serving call GM, With as development, unique our have including that and Edward Crossovers We the Ed? joined He last manufacturing, remains the roles team new business GM's Executive XX shortly senior market call. I'll Chief leading executive. compelling by global BMW $XX Engineer and experience product engineering, President,

Edward Hightower

the very November in in the am first two product part development we I that on as and participate launch objectives: Endurance in my joined Thank QX last team Lordstown you be to you, of I update launch. the had with I President giving by When the Board call. Motors Endurance and Dan. build to complete Dan I to earnings will Foxconn. start the joined relationship alignment to an excited in company, and a was and I with

with with strengthened Over quarter, that team the vehicle we professionals have new last launches. possess significant experience our

and been. quality, success Lordstown disciplines Endurance QX. than stronger ensure is structure launch automotive governance launch to and industry the practices it We've timeliness ever brought organization best Motors the has of and in Our to

to driving of launch. on production Our new the system us let part engineering make is speed Lordstown practices, decisions embeds based facts govern new quality the availability and readiness, and and

or CAE Advanced this these and and for validations, our market to mileage pre-production the NVH final confirmed on Starting engineering or validation, of adjustments, with Lordstown be for testing. the the production underway durability programs two, used PPVs; computer calibration, over-the-air Driver and are line will comprised aided opposed engineering PPV. been as build corrosion is calibration These testing XX and in be high in engineering for group System have using three build and Assistance PPV; on this full and underway. in one validation road tranche gives Our including next. using opportunities simulated ADAS PPVs, Minnesota, from Further, homologation low-mu or tranches will these feature, production in software XX PPV learning, plant demonstration improvements vehicle phase. PPVs is Baudette, are maximize of we vehicles low experience vehicle prototype part crash brake XX Many vehicles during equipment. tests produced or led of which three validation, is being three, first plant of update building program currently validation test This including environment which associates to process, safety passive one, early actual have a build performance the our pre-production make This entails of vehicles, of: These vehicles testing. and pedigree completed and certification testing, tranches comprised shop. friction the manufacturing validation, to and

this complete build by early to April. group expect We

will tests or next used EPA, testing, homologation for Safety including and Federal Standards for FMVSS. Motor for Our Vehicle CARB, and the the PPVs tranche certification be

roof to addition side, frontal, and rear monitoring. other safety, defrost vehicle visibility, functions, pressure defog, passive series lighting, a include tire crash In wipers requirements, and FMVSS of and for including requirements

CARB QX commercial our working support or August all Endurance are launch. certify to for and to release applicable We FMVSS EPA, the by production late standards CRP

third our be finally, prospective the We expect building performance tools PPVs market These include are vehicles. of by second the will late And of demonstration finish Endurance PPVs PPVs the of tranche will to to demonstrate tranche April. valuable customers. to --

experience interest constrained will limited to supply continue especially number and in the the XXXX. have available are in will the vehicle, through sell We confident strong vehicles we we of environment,

see and hands. We cannot important the Endurance’s are Work Expo. wait before why them discerning as and which Truck However, the shows placing experience our it buyers ACT highly believe need participate NTEA in to enabled plan commercial superior handling by get for We capabilities motors. fleet vehicles NAFA and important in-wheel orders, to maneuverability trade is binding and to is their experience hub Week, we vehicle’s to such in

by third and mid-June. this We tranche final building PPVs Switching to expect Foxconn. of finish to

As Dan battery Lordstown or using develop, mentioned to Foxconn’s been with have Mobility-in-Harmony design, MIH development and on for agreement vehicle industrialize Foxconn a engineer, a product electric working platform. program launch joint open we earlier,

plant, team and Foxconn an other develop motivated the launch. vehicles new vehicles scale to is for create will to These be OEM globally. for will ourselves other with vehicles chain flexible the time North for Ohio and market. OEM world. and innovative to manufacturing reached, experienced objective contract this business at where users production an have footprint platform, new we at through customers new at of a shorter the If lower supply manufacturing create Foxconn with from volumes, Lordstown The model capability America built agreement and and MIH around achieve concept We this locations will potentially

development For our platform, our joint development portfolio. LMC, product with a the development product of Foxconn increase particular, and a vehicle provide agreement product in reduce breadth scalable costs, will

has Dan not with Foxconn at stage, to Thank As you. turn been the agreement a constructive, have discussions Adam. call while reached. our over I now definitive stated, this been And

Adam Kroll

I'm and progress Good fourth quarter our also opportunity the enthusiasm going quite Thank challenge. morning, both you, everyone. Edward. we and have share I focused Dan forward. for Edward's in the our on

and challenging in you when headwinds, our vehicle We is changes as year seeing on incredibly and it's our launching endeavor, more I As our by operational, had all new and active vehicle are quarter. a your an engineering, team financial XXXX of through first fronts, how navigated delighted very the am a LMC and made with macro startup. complex peers, have a the members all strategic strategic, particularly COVID-XX. shift, executive given only fourth

$XX reviewing In received the create X, from a plant in our the definitive a of common early About late in partnership agreement Lordstown begin purchase of stock 'XX. the downpayments considerations and asset later, by agreement transaction six $XXX Foxconn. of for have for and me the financial the announced Lordstown facility September of XXXX sale of in of purchase principle investment To plus to we in Let intention an million, aggregate sale between we incurred $XXX September, million regarding and proposed reimbursement $XXX alliance. deep price weeks the we date, QX of part including announced and with million close. million our Foxconn, certain the October plant the expenditures QX

equity items, hand. and ended spending raises. results. of turning permanent on $XXX additional in and million outperformance is of to fourth being savings issued associated agreements million That in We $XXX total, stock with result with In along spend certain the financing, disciplined of capital raised the than equity million our The $XXX our the We investments with Foxconn common planned in with of deferred the capital The we investments midpoint the largely savings, quarter quarter working million permanent guidance delayed Now our is with more to million. generating hard QX million $XXX quarter fourth balance in agreement. tooling, plant. operating under related the purchase commencing favorable were $XX of capital the our cash the first our to $XXX XXXX. primarily during

capital warrants the million $XXX from and for million the and $XX option $XXX capital For million exercises. year expenditures we raises full activities. the of exercise and flow consisted financing and million equity almost $XXX the from raised employee from of from expended cash Foxconn, The purchase agreement operating million $XX

first, to and meaningfully back million improve third Turning QX, our to net sequentially from $XX the quarters. loss of continued second

testing relatively our when as and QX. million procure lower and were QX, decrease both with compared materials engineering improvement compared QX, R&D to in Our build, on the QX prototype spent comparison costs The of as In PPV. with we by we QX by from personnel in was parts a $XX in line with along second for support. primarily and and more costs, quarters PPV first to moved manufacturing, meaningfully we offset components vehicle in consuming building the driven component engineering for to lower outside

our freight. due SG&A need lower In quarter-over-quarter, of driving up investments. to addition, costs insurance $XX we outside by million XX% chain personnel offset supply costs and partially use higher freight to expenses experiencing are IT everyone, issues to and infrastructure elevated declined like legal as consulting are expedited

incur expenses to resulting from litigation continue SEC legal ongoing and We the investigation. significant

the are the current quarter X% total For spending and Unfortunately, level SG&A able from and until of resolve expenses. QX. larger of approximately in costs I to legal XX% some total of more XX% were That's persist over our anticipate operating QX than down SG&A matters. the of we of to

our infrastructure future the addition, invest SG&A contribute proper to higher processes In for forward. to our to continue that and technology people, we in going will establish

and systems we running, consulting will be our elevated. get fees permanent and new to professional hire As seek staff

were net $XX our comp, to we for million. well million. mark-to-market. guidance year, expenses a of intangible operating range were non-cash of reported $XXX as For fourth the our net amortization, full the $XXX due compared quarter was loss in results $XXX the million end $XXX to Total bottom range. the $XXX million of million loss million at and to discussed. of below of guidance fiscal stock R&D $XXX SG&A Included million guided warrant to charges $XXX our million

we XXXX, to forward focused Looking QX. on commercial in launching production are

of we year. limited Dan production anticipate units As XXX about mentioned, a this

anticipated tooling, always management largest volume medium expected and hard XXXX. all our tooling investments the are a our a fund function seeing over into sufficient occur and design be would have above and the It vehicle to begin of a able We share Endurance components prototype launch materials term. opportunity prices environment, we XXXX our lower drive and low represents the planned in price enhancements. which of launch with is per financial bill are simply of Hard the bill If will raise bill disciplined to in of continuous and at where leverage expected most we for late in higher conjunction materials. the to materials XXXX, down of capital of overall piece to in we tooling

to raise financing, the public our to evaluate equity structure in launch previously well of Lordstown product is substantial an And commercial among expand alternatives, our facility, of Dan the plan. portfolio. funding QX transactions, structures, additional financing our critical mentioned need with we execute reaching ahead finance program we our even and private a Endurance As to the capital launch ability Foxconn additional joint agreement appropriate with to production development capital we of advisors, and to debt product including require as Endurance to we will With earlier, the or disclosed, sale a with business believe continue others. the

the a We for company. phase entering critical are

significant and we of needed business While transaction Foxconn coming execute our do months Endurance where production, is have we the in the be on not is plan. commercial raise to the capital to the to cusp yet

chain, our that, capital with depends operator together we and outlook macro, deploy other to the our regulatory during that execute on questions. factors XXXX ability how and supply up to engineering, With open many capital ask will influence the Our geopolitical, I'll operational, year. raise plan for

Operator

Our is from Instructions] line first question RBC. Spak of with [Operator the Joseph

Joseph Spak

just I But numbers the of delivery maybe out, guess, let’s here. bunch questions some you on of just a start Dan. threw

So, you're I'm third quarter for up And XXX, given then the assuming fourth quarter. to till pretty X,XXX not starting 'XX. weighted, that's

is do not think just an probably up that 'XX, rate So 'XX. the from operations it's sort something meaningful And exiting to to production what step we in stem I'm about if to average build understand, like that how into you're of we with what of 'XX? about it Foxconn, 'XX Or that and sort of -- sort switching should of is supply issue? a over sort rate think exiting trying

Daniel Ninivaggi

path. I mean, glide it's BOM the driven Yes, primarily by

So down, accelerate BOM get as we we will the costs production.

So see in back rate And the we'd 'XX, production it’s higher a half even year. back end of weighted. the

just the need to the we're of is vehicles the into customers costs, of BOM while costs BOM the with the So get reduced. being really producing vehicle costs balancing the hands

Joseph Spak

with -- here funding with the when rate hard So like? variable more I into exit sort this maybe model, of and getting wanted new like sort Foxconn, gross kind is question. just 'XX securing of can the arrangement it, is My of segue the tooling. the sort of sounds what a I of biggest much to So good that's it's a margin that right? sort complete understanding next it factor mean, like look

Daniel Ninivaggi

words, going Adam QX. tooling, hard QX cost mentioned, other initiatives. biggest I I giving we in QX, CapEx And some early think impact on is BOM the the on not to deferred the into of that. spend and guidance we're be mean, those Yes, VAVE

of delayed. that So that some benefits

BOM biggest to costs, influence So not that's the on the Foxconn. the handover

Joseph Spak

my transaction responsibility? understanding is responsibility But And is Foxconn's of -- sort sort sort tooling sort the your or of lack transaction. hard the but this the why about that is maybe of Okay. of of about

Daniel Ninivaggi

It's our responsibility.

Joseph Spak

handed it's to over then And them?

Daniel Ninivaggi

no. No, is But to tooling. in owning the over tooling, handed investing ones them. being Manufacturing we're hard and the the component

Adam Kroll

tooling That's is OEM That Adam. it’s way. like… itself Every their right? Joe, tooling, -- is Which owns the standard the

Daniel Ninivaggi

Edward. this Joe, is

tools. we'll higher-volume more soft those to that, time, with transitions to hard able as supply our be over tool make we to addition In those suppliers optimize chain, from

contribute our costs will that as to down BOM going well. So

Operator

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

Emmanuel Rosner

guess making how addition you capital. short seems number to production to Can is give secure trying is a it the us think on sense like I in much X of up the So some needed capital priority to progress you term? in ramp towards

Adam Kroll

Yes, Emmanuel, this is Adam.

that to we come year, to the continue like can There's built through obviously about expects talked liquidity, tooling. need for which But year and we the to trade-offs get $XXX pull our we in us So operating plan and always plan piece an million. impact operating fund price. levers of conserve the execute to raise significant we the range on the with

Emmanuel Rosner

tooling would that for And the include hard Okay. the financing launch?

Adam Kroll

Yes.

Emmanuel Rosner

shorter various are contract capital, you're we if -- some give hear is term could And probably business details want manufacturing potential but able guess, both of sort capital you with expect think around Foxconn, to story economics also the Lordstown approach as putting an I into I a time? economics the to Okay. to like that sources able relationship investor is you ultimate new over of that model, the the are of the what expand it what

Daniel Ninivaggi

Yes.

call. with of a mentioned of originated It outside competitive So I the component portfolio, and the us development access things the gives inside gives including joint manufactured for sourced licensing and in important vehicle an It that's with components number scale Foxconn. broader to It base, gives and a development U.S., us Foxconn broader us that the a does are transaction. why overall benefits is product commercial us. of agreement opportunities Foxconn the by a supply platform. stronger

joint the The the important. platform company am is on we ongoing, further are We a not there. why so out I that that could -- So unique that But And development production. Foxconn need and investable this derivatives is that that quite what me, into well. as think, to future is truck to going bring the vehicles along. I there discussions is product story There's a we're Endurance. investable, get it relationship also to that I'm hopeful makes Full-size which very to pickup that development and be there. disappointed we that we'll get the the giving And up, positive conclusion. is future think with vehicle off frankly, is agreement we're to platform. And -- the not makes, product built need that, obviously, is but be

Emmanuel Rosner

just And already and I what understand, agreed Okay. to upon is what -- discussed. guess, where being has

upon So future an the for the part that is the is on that part agreement essentially agreed The isn't is manufacturing pickup. contract for utilizing their vehicles? platforms

Daniel Ninivaggi

right. appropriate That's an And funding around arrangement that.

Emmanuel Rosner

wanted... then And Understood.

Adam Kroll

To be agreement the sorry, contract manufacturing Emmanuel, is not clear, finalized.

Daniel Ninivaggi

filed We've with but progress. made We not it's significant draft a CFIUS, yet final.

Emmanuel Rosner

customers units And a do -- then think who year, these you so this one. us as -- as of a Any a on Do you soon couple the customers? trucks Okay. to? customers you -- Endurance, have it of to taking expect your final of sense Is customers? give go lot already can each? trucks the many few who to you I disclose to a Is able sense early guess are you of XXX do are? it a truck who

Daniel Ninivaggi

with customers. efficient in the of and way. depend an in factors, to relationships talking service a fleets my we where management try maintenance. it on we in sell companies, we're mean I do comments, I but mentioned Yes. which But and as to will including the larger longer-term fleet to strategic we customers number want We'll all have particular,

fairly -- year, be vehicles group. be XXX limited it given for the will will it So a

Operator

with of Goldman Delaney Sachs. question the line from next comes Mark Your

Mark Delaney

think was to Endurance the hoping gone about maybe pricing a quite up I cost start the for industry. has for to bit the with

about talking You're challenges now for cost Lordstown.

in So a point truck? the for of price should pickup we higher much about thinking pricing be terms

Edward Hightower

feel that. filing Edward. we're Endurance the pickups electric the point Thanks amount We plus market And that battery with justifies really a price how the is we the standard proposition This now in our vehicle -- the significant launching options. for the our that's economics of of is value full-size price where reflects for that [XX,XXX] availability our question. in right

Mark Delaney

it. Got

Would And hard later $XXX with gross you're hard positive helpful. tooling? capital about that in the 'XX Okay. needed That's this a for of the of you then support thinking level margin supporting tooling million year. envision plan in that the

Adam Kroll

Well, not into 'XX. quite

as opportunities got it's that think bottom X,XXX We've next the I XX path will towards glide bring to probably is months. into the bring a other over efforts. The Dan said, We year. looking to need there's down breakeven, their to up units chain guidance VAVE make and make as down but Foxconn supply to well chain improvements, supply costs. design relationship partners -- enhancements,

we XX over probably think So it's months.

Daniel Ninivaggi

Or Yes. even into XXXX.

Mark Delaney

that And for talked about Okay. costs to how might how if to tooling maybe much it help You what's right? modular think was us That's or about very helpful. are, hard But for -- capital necessary X,XXX just to 'XX. CapEx get cost? X,XXX the XX,XXX, up

Daniel Ninivaggi

Well, I million Adam of think number provided a $XXX $XXX million, range in. for all

Adam Kroll

that. tooling all of isn't The

but in investment of that. trailer mean, than like hitch. for the hinges, different I you're suppliers, need, a vehicle. out tools others, varies. on vehicle much pieces we door mean depends talking things the tool the for you tooling tooling a on has how greater gone number some I I tooling with might haven't exact where we there's need So an different mean the

large. range they So small can from to

Daniel Ninivaggi

way we The look point, produce at the approach at is for it we of terms we number the need units look breakeven Yes. any to of breakeven we the in tooling breakeven. point to investment

breakeven as the from low high and obviously, we then points tooling is priority So there. go the

there trade-offs it in But terms how we a certain mentioned, longer payback Adam to. need has get modular of are we We can the that as you So dial again, if quickly tooling BOM asked how back is. cost reduction.

to that's strike. we're balance the of the So trying kind

once. time. over It's all not it's at So

Operator

Our the Stanley. Morgan is with next Adam Jonas question from of line

Adam Jonas

Foxconn, regarding the consummating agreement towards manufacturing an that sale -- for is a assumption agreement. plant the to am my of correct -- we a securing still is which that that prerequisite agreement my Dan, Foxconn. progress So contract contract I manufacturing the It's in in Is understanding with correct?

Daniel Ninivaggi

That a condition. is true. It's

Adam Jonas

Is And there it any Foxconn, associated I'm unlikely, reach you fees that the however, in likely that, plan for do event there there's but if place? what's an agreement -- Lordstown possible, contingencies or with Understood. not curious And Okay. any B that. let's plant? call event, breakup with in with or the are unlikely

Daniel Ninivaggi

mean, we an certainly that don't agreement, think look, it's it's conclude I possible Yes. highly but unlikely. I

to think I elements there. the They all will As agreement, not considering where to the contract of joint conclude has that of those a And agreement. get point I alternatives, good. point The But we're at we they're are a been development yet. we ongoing. a If not manufacturing to -- consider can't said, certainly the a work to contingencies. get will importance have really the we agreement, relationship hard I joint including think, we're get agreement understand, or but discussions I development

Adam Jonas

Okay.

I'm the goal does across I'm -- which future that understand it sounds asking, A You Foxconn But and we plant bridge is fine. is like that that what your in dictate line. and of really overwhelmingly, seem focus that in crossed the position that future course, to of the it getting because plan company a the is just of

Daniel Ninivaggi

beginning. sure to deal. to we'll we for to of we got the original fire and There a We do good something in do. to joint always we don't, work are concept Foxconn there's mean, the don't. the with confident intend to reach in incorporated on development that to agreement. future risk they table we been a feet relationship get It that but to for very their are faith there, have else. MIH all if and make then we'll that And commitments can hold I'm the the make has be And them was the we're from I Yes. joint look, confident win-win. It's venture, agreement The vehicles in work. there

Operator

The of next question from line America. John Murphy the with of is Bank

John Murphy

at have want to raise. that you the follow just wanted more few I because Foxconn think in scrapping on by or we're in scraping day $XXX you're launch. year I might and up the be you number raise money the I can to I all get lot million, gave us answer, this from Adam, where product of grow. $XXX been next blow really create it still. -- mean what a to money. mean don't to $XXX you've need? are the through mean, real but get I next And year, the like what's stage you this its scratching you and to mean and getting be to like to good this sounds is for to you're not this got out created mean quarter all million phone million company just on company decades you I you I through some and industry a get really to cap of I mean, has need? do this capital and the what

Daniel Ninivaggi

scale get a benefits to we to can thing. deep and can We cheaper of that. collaboration that -- But the competitive and Well, sort look, with we to need -- of the need mean, joint what the I a because agreement -- vehicle development going and platform product. do that's market we quicker where forward, go is and really again, that's to to back going I'm get products Foxconn development that

give will proof that Foxconn they're incremental funding, it. is I in we have agreement meaning to the some investment as we all investors if and from venture tangible supporting an get appropriate and think they're that on what in confidence

at So think I capital now. corner step I need we fairly need to what terms get what at do we we have the BOM need for bond cost what a know We right? been But that's We've going a to of to we to well. the in while turn It's as this one to time. down. to the require do cost Endurance think is -- the clear, more take

First, there. that have have strategy that's of get and kind have prove we we to to a a investable path we

getting million production into to sell a and we that $XXX go certify will proving can actually a long way us the and think I vehicle.

I think of the to the performance be going vehicle great. is

first I with improve we'll think when so. one the the be of parallel, out get of full-size and time, on X which can opportunities see we can market time. Endurance partial or to will it months work XX within the there, I to have pickup vehicle we few over trucks MIH, or a redesign think people think it And same at in the we

Foxconn with right. we that quarter-to-quarter. have and can allows things. there, we're you're through prove us think think comfortable we're to we other not one but some then with and it. step around us a time living $XXX into that year support funding buy million, to The at we gets But then for and the a time, XXXX scrap and It's and here execute it the deeper actually I and people's deserve capital this sit building relationship So full we'll we're -- plan starts going

John Murphy

the approval? for the testing to and vehicle get brand-new you get you'll on like FMVSS X mean question quick. second everything seem window, carbonates pretty truly what regulatory X-month to seems A traditionally X X- months is window to think a to I done. and Because Okay.

Daniel Ninivaggi

by does line we have the line vehicles each No, for that out, and and different certifications of of us August. and complete that -- get a within our that John, tests build through a We'll we April, us mid have portfolio that this tranche homologation the we time maps getting time all of certification detailed in summer. and have that all to late

John Murphy

But is window, mean, done like past? something that truly mean, I sounds -- X- that brand-new mean, quick. is done -- X-month awful I to me you've this that you've Okay. lot. it a I the in vehicle, Because you it for got sounds a that

Daniel Ninivaggi

CA, mean, so done. underway also it's fair time time of that analyzed and will has line been lot is meet I of A confident through been amount Yes. we but now. aggressive, right that line. A it has we're the it

John Murphy

mean, Lordstown? us plan at unionized workforce support, or think labor you that Build of the Back Okay. incremental And Could incentives vehicle the just for do has UAW I vehicles. would benefit And qualify then Better built not? you you some remind on producing pretty government for aggressive

Daniel Ninivaggi

to Yes. plant I But to be there's point. plant have knowledge, want organized Foxconn unionized up to the not. our workers way the we at the one workforce to union to this transfer our other they my at towards a We moment. When view It's no really a the issue. unions. mean isn't of decide more our or or whether don't issue activity going than that's on in Foxconn,

John Murphy

each just industry. any given of against in and you've history mean your in done you then it's And what way individually bet I hard to functions, in Okay. your the lastly,

-- a the in the of So of traditionally certainly the truly of pushing we there's each the of sort Traditionally, has had a and founder company. and lot for start-ups, that's EV not an moment have gone. founder through these But a startup, alpha the respect that's just for founder case the things vision you. has been person kind and that's

to takes you've So are intangible here. I pulling to all way, a wild everything Dan, kind feat confident that far, so responsible necessarily of mean, mean, viable, Is really to sort there's going done? single should really you one all over in this? done person that is in of who it at of that, founder is this these and Ed? this look we saying spearhead to kind that? just to this able who not complicated a companies, be really this and of that is together getting it's sort I you, it but the Because absolutely I person? a kind really mean, tremendous And other how get Dan? of we this how execute for person get we about what stuff all when thing and have it is this and of done we is think mean know parent it's line Or finish whole I

Daniel Ninivaggi

XX an alpha I've think I'm known that you John, years, you man. don't I'm insulted Well, for

John Murphy

I you're this alpha everything is an think that umbrella but you in is wide. male No, do, like

I changed know which just I and to right? mean in. up I of become direction that deal it's and go of it's that. lot. you founder sort has mean in might practical need of to here, You be know a sort -- more mean, focused, the I the sort wild vision

So you a in just you tasked good it I And person have single think mean other curious than a these of I'm lot might players, with that. that way. how got truly everything. but you answer very about we that But situations, is

Daniel Ninivaggi

for coming going who's launched situations thing. in, the this one joined execute is own ever know, good of about into we've to better. for of We're We've I solve industry know problems. thought all Ed's saying, veteran to solve XX-year this to for we're the about to as I So out own what I'm mean, complicated is and I'm while. top-notch I okay? mentioned, it's it's and our played exactly as seen. Foxconn I've worked Ed going what talent knew challenging I our things strategy here. execute. when I've That's I mean got they're kind got know We've why pretty CFO. been I it transaction. as the as I been of don't to in problems. maniacal, my I operationally, a engineering around Ed done talent bringing what much XX knew look, than And maniacal company, know. this. more done, But part I've programs, the most a our big through challenges. who's Adam be been. I I ability We're was The in benefits getting it is is would. and I getting right? a the Icahn years. I Carl not believe okay, I

is, I matter said against think most up smaller you're players. OEMs, earlier, I as survive them lot will industry, the in of and not does a scale because this going big

spots. to got you've So pick your

got to without a $XXX You've being out billion to way vertically be integrated a OEM, figure OEM. competitive

a relationship of got deal. it's we is to actually be it's I but that And we're a relationship, early in and short so we're trying about on, And but the Foxconn, our by all not to need It's I any smart not on And to means, prove win-win out situation. strong. be thing said that. done benefits think a

you to And him. you're who talking know company, alpha me. there. I if think we're to It's to male in this want going get the is

Operator

we've over reached the Ninivaggi, time, now turn Dan remarks. this to the call session. for the of I'll closing question-and-answer Chief At Executive Officer, end

Daniel Ninivaggi

of year. easy thank been LMC Thanks, an for by wellness. over has again fact like not also the close operator, who and participated team, hard those our we shareholders the manufacturing, their support. the all are team that the very thanks It that our and to let has us core engineering has I'd and I'm all never like to the distractions for today. thanking challenges proud to corporate I'd in call. work where

to management we the program fact, never the sooner. processes look day. been recruiting you to you, business our in top operator. speaking we've to and In every Thank better to improve engineering forward automotive continue organization next able not and especially attract best and quarter,. Thank talent, the have priority. is new you and some if also that grateful talent been great I'm with

Operator

You're welcome. conference. today's will conclude This

may Thank disconnect this your your time. you lines participation. for at You

Nu Ride (NRDE) 28 Feb 222021 Q4 Earnings call transcript