ZEV - Earnings call transcript Q2 2022 | Lightning eMotors, Inc.

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Operator

Ladies and gentlemen, thank you for joining us for today's Lightning eMotors Second Quarter 2022 Earnings Call.

As a reminder, all phone participants are in a listen-only mode, but later you will have the opportunity to ask questions. Also, a friendly reminder that today's session is being recorded. To get us started with opening remarks and introductions, I’m pleased to turn the floor over to President of Investor Relations. Mr. ahead, go please Smith, sir. Brian

Brian Smith

our measures. based Sethi; and Thank differ release Lightning Hosting Reeser; are to issued joining Covington. and Kash today. its SEC, second earnings which filings for risk call from in reconciliations release you, Chief materially of to on includes statements that, Today's today forward-looking press call, refer Officer, Tim can operator the CEO, factors are us presentation also and on lightningemotors.com. Teresa section statements XXXX the Relations website at thanks it current Please let the could On be listed due be Lightning’s website. we this CFO, also measures duty earnings me that today's non-GAAP of no found definitional call, We and quarter assume on contained of risks Revenue information GAAP reference to will statements. for Ahead in with Co-Founder Actual results These today. assumptions, Tim. the in turn our update the subject will to these which and Investor non-GAAP measures. presentation to and deck, comparable can found management this With forward-looking press which any earnings be release information financial expectations to over today's and uncertainties. our making are and

Tim Reeser

products Teresa a business and today's update. markets start and up an I development will with you, supply on a Thank will to financial wrap thanks with and with update sales initiatives. provide for an Kash of today. Brian, overview. and agenda. chain Lightning And on then overview off us will and everyone Slide X joining I'll begin

X started buses, with trucks, over company shipped We're market, vehicle We vehicles in our and solutions believe XXXX the miles hybrid school ambulances, X the shuttle shipping of motor coaches. only with fuel all product zero-emission electric now Class manufacturer range zero-emission million of in We X. by only commercial utility X including Moving electric driven vehicles have in is eMotors today. the customers. currently full battery over Lightning XXX classes through and Slide to cell these and buses,

to strategy our us advancing learning chassis electrifying start produce earlier a by EV us Our than things and ICE all to peers lead. has giving about competitive in-volume our allowed

to designing eChassis. As our and move we now own building

customized serve a Slide X, segmented highly software and and cost effective modular solutions. a allows hardware Moving market we've us to built with to architecture that

of level are Our historically is that building electric commercial high Companies that like software well OEMs not the manufacturing legacy suited vehicles and pursued electric volumes in vans and have and trucks medium-duty and hardware high segment. GM is something business not required not light-duty for. have customization supports Ford a and commercial that for are vehicles performed for model

all two quarter Moving were vehicle XX of in and over pushed the powertrain customer demand, to meet quarter, XXXX. executed expected is of XX quick vehicles our in in team units X, the well very and delays These but which sales into resulting XXX% of nearly only the and production to customer the financing quarter, powertrains, built QX, QX nearly revenue quarter. half Slide summary a producing increase

in into will more over call, of partnerships, revenue go new earnings our so million far Since coming up. we $X strong that we recognized QX. We of which products in have lineup a announced last have detail and already expected

future. We investing and continue hire are to team leaders industry we to the our for

pressures to future. in we to costs, on improving help the offset the quarter, prices product the margins during lead our Lastly, which inflationary adjusted our should

Slide to X. Moving

both include are North have American expanding we Bus the that year, which Type reflects in to are successfully also chassis, to the helps buses terms commitment last of XX,XXX about we per school A which that We market, buses also supply. Ford month smaller our chassis partnership of which Collins It GM bus announced and our us electrified. represents with XX,XXX

funding With the and in school clean as $X part our a program billion partnership bright of buses. of Collins, with announced we see bus school EPA’s the yearlong with electric future

needed infrastructure month equipment to battery mobile our Moving or allows fast charging to wherever customers charge providing it we next-generation infrastructure Slide arrive. to permitting XX. permits, commercial for waiting temporary lots, installation providing while our in charger, charging and with limited charging which is Last charging announced without vehicle electrical vehicles, in also areas

and of chargers renting buffer mobile already DCFC an number of of configurations, battery Our $XXX,XXX. can an $XXX,XXX MSRP Several between unit. are beta accommodate and early variety customers charger with a

Slide vehicles. buses, have us of supply top shuttle of fulfill having them XX, area month, to in shuttles. bay face without of employee emission repower repower commitment to some to existing fleets Lightning ICE companies Last Moving some asked limitations, announced coming their the chassis to that some purchase new their allowing the are reduction tech to their of in to the we

partnership last offering In powertrain we Blue Blue their beyond with the Bird with announced week, for Bird options May. to Type C buses, addition, repower school certified extending announced step an provide we factory in our van

work we our another QX have later new XX, eChassis to now lot. the XXXX. landscape. arrive Bird And we offerings XXX be Engineering XXXX. with With supply end expected and with chassis GM and platforms second the by production GM of in our better new QX, platform now half to of and XXX new our year eChassis our Slide in earnest much and Lightning nearly agreements, and visibility partnerships Blue to let's Moving plus chain this Class discuss X powertrain in in the the on is expect progressing for

six strong Our and factory we and repower X the repowers customer first weeks. are delivered offerings over certified Class interest the seeing X last

battery we have today. supply batteries, year hand better due on were which previously partnership stated to much And limited in The situation are we agreements. last inventory remains dynamic. As new shape

range to platforms and a well However, as given on benefit platform, reduce safety. may quality more configurations, from price new new require improved as the battery and/or and support as both

manganese nickel been a battery price more significant lithium-ion based Our battery push have platform some leading our cobalt while based our lithium-ion stable, pack our to us options. pricing designs increase, phosphate has towards seen batteries of new phosphate

lead battery, bringing such for we Beyond evaluate work power supply chassis as remain in-house. our parts. thermal components wire times chain steering, to harnesses, and continue component to diversify to additional Long management production electric and and

XX. Slide to Turning

near next we've XX that for spending, sufficient out discipline proving shown our in the months our forecast fund our the operations our discuss funding position great our is and for plans future. We Let's model. current to CapEx CapEx-light cash

great terms return and of investments thus quality a production team industry of capacity, corporate generated expanded far products, Our a experts. committed in have

we to As customer consolidation portfolio invest team, our in to we've stated base. and continue for before, growing our we and intend industry see opportunities product

that key us the capital it now that the partnerships. we secure of overview So in to over next sales expect Kash making additional take continue further year the will provide an near pipeline, turn order and I'll backlog, will to allow And we to to steps future, investments.

Kash Sethi

an update products grow and zero-emission the report orders our delivery are glad buses, shuttle I'll Tim. to customers, I'm on we verticals, core pipeline our to pipeline, cargo receive passenger to and that sales for XX and Slide and school continue market new Thanks, backlog. begin provide products, vans, which partnerships, vans, sign on repeat buses. trucks,

partners, us is enabled vehicle Forest builders engage to network River have wide of reputation strategic brand dealer distribution leading a like Our OEMs expanding extensive and and with customers range network. Collins leveraging partnerships and market our our and by specialty with

Our July XX, around sales pipeline was as and approximately was $X.X of backlog million. $XXX XXXX billion

charging all powertrain systems Our all and electric order systems. vehicles, backlog includes electric commercial

some in additional and show direct C consists On vehicle and repowers and Bird, XXX and been individual transit type XX, applications, engagement we number through engage RV school bus how representing a of customers in with with pipeline mix electric sales a motorcoach over and Our partners. dealer opportunities, of step an vans, sales Slide repowers Winnebago. motorhomes to large able with Blue we’ve partnership of partnership bus partnerships

to We expect in strong segments next these see months. to XX XX the over growth market

in look details We partnerships sharing to also future. continue and to explore those additional forward near the vehicle

electric. turn California’s Slide to XX ACT vehicles. funding drive to vehicles and emission fleet targets. Airport and programs Transit Shuttle adoption discuss all commercial the are strong like is a mandates, message zero Rule that Rule, very on MOU continue market. Regulation, forces future of to sustainability to XX emission The the zero I’d a Government to the grant delivering Now regulation and state

HVIP California’s ever state No money are Authority’s mandates adoption of like the providing this the have. Mission the to more are accelerate Transit than even now governments they Programs emission or significantly Low providing vehicles. Program year zero Vehicle funding and Federal federal Beyond more and program

are mechanisms expedite the join XX New in to Clean programs our to timelines. program School Bus drive and next to the all expected to to iMHZEV able EPA’s These are like programs drive helping We’ve months leverage and backlog Canada’s our been electrification. to the towards pipeline. sales these grant projects and the six due industry’s ZETF process

if medium In EV duty tax and also Reduction accelerate Inflation heavy recently passed addition, announced credit adoption. Act’s the should

march Lastly, goals. by electrification many continue towards motivated sustainability the fleets corporate

to of with I’ll the lower that many believe that, of outlook. And Lightning’s to provide Teresa also seeking over and corporations turn electric, increases accelerated looking have prices gas interest an financial We go in on cost update it recent to total ownership. results

Teresa Covington

on some Beginning full our will XX. Kash. results now provide you, quarter commentary Slide second and on third Thank year our I quarter outlook. by followed

due which For the quarter, and million overhead percentage In was the revenues have Inflation higher Cost also due unit minus goods XX revenues. quarter increases to electrical has cost. the higher of been sold million, The to second to period, out year to have lower Lightning to cost. on and primarily minus the primarily gross the $X.X quarter pushed raw produced battery primarily XX% material the second XX customer affecting in XX% $X margin $X.X compared the from we during and to powertrains period. due and was vehicles some expense. led our nickel depreciation sales with million components of compared decreased delays. parts year quarter, Fabricated and prior factory XX% year Lithium prior during quarter cost. sold period, generated of financing ago the resonant

quarter believe higher be a and our was increased months of quarter which costs second focused as period, public evaluating We $X.X company with operational towards million efficiency $XX through upon reduction few prices, costs cost second period. purchases $X compared in-house volume cost ramp the prior the we to million banking, higher year margin $XX.X we and loss million compared SG&A difference Slide million fixed remain quotes was million the prior gains our net XX. the that cost drive in period. earn is Research and $XX.X changes EBITDA engineering to $XX.X pricing the The period. a to capabilities. million of period. year leverage with and The was to be overhead, revenue loss $XX.X quarter second and logistics the net platforms pricing the The $XX.X grows. prices in expenses We the second the $XX.X year the compared gross transportation elevated contained from for prior experiencing in loss those out ago. income quarter and of the Net associated EV and a quarter to Total prior the can during new liabilities higher million in an non-cash prior in our to loss primarily The compared a A for the compared non-cash was adjusted to period, and on also audit based due going period. primary in $XX.X our from reconciliation EBITDA second operating quarter our inflation a development is enhance in last compared vehicle new in was on the change labor derivative year legal fees. value expense operating positive production of development second million and found operating prior forward million and were about one-time expediting higher to the adoption. over will current on in in driving for and $XXX,XXX loss million changes $X.X liabilities are year quarter. $XX.X to year charges related the continually We losses becoming on million expenses advance headcount year million engineering in to to that adjusted compared primarily we’ll of income

level quarter our second second XX $XXX.X we the end for Turning believe the ended Lightning at fund months. quarter Net cash was half of of equivalents, million vehicles with customer $XX.X includes $X.X were our million, operations of balance finished in is The production sheet. the second of to in inventory next support million goods. primarily sufficient the and to and pushed which is cash inventory to the financing due which the higher included that out second our quarter delays.

to third year. quarter for the Turning XX, outlook the Slide our full and

year be revenue. in the million the range powertrain XX, system components and have full be year in we loss $XX continue battery to of XXXX to capital system to range September of the mitigated XXX While units, to $XX with for with vehicle $XX conditions, sales and XXX the supply million components. to units, adjusted spending million $XX we XX quarter the range in million, million XX on revenues Based impact mostly our to to project ending range million. been chain range full range XXXX of expect and in $X certain of timing to may any vehicle be million challenges of of experience in $XX million. in to supply to of Delays chassis near-term, of business $XX to current EBITDA these the in the challenges the be the be and other $XX the We to be associated for powertrain to revenues sales

remarks. it back turn I to for Tim closing Now, over

Tim Reeser

the about you, Teresa. excited very Lightning for eMotors. remain outlook I Thank

Our taken and each chassis notably now chain and some an improving third acceleration and mitigate on quarters. hard supply to unprecedented battery has leading of has fourth one. to guidance in supply, see And challenges in we team production some can worked results our revenue areas, and

maturing the or latest The with is truck today. X government is scale. proposal and to through achieve the in we on recent Inflation the and to clearly investments lead acquisitions industry tax bus Act us increased Class our sector’s through the presenting and focus where which targets $XX,XXX a Our transforming, Reduction critical opportunities bullish credit X market segment

ready emission your challenging our team that, moving everyone now to clear open who with operating Lightning velocity We and executing questions. with I future. a focused at near of would profitability. strong With a we’re to thank to want company’s line The of to long-term have to their I is solid through growth moving high And employees focused a environment. day path finish and space passionate a contributions towards for ahead. the our and shareholders a are the in are thanking EV success widespread for less and strong support. and the thank by strategy Lightning, – in with having our energized, the are their partners that vision, for and zero growth than to customers passes, like many With market vehicles, level the our adoption forward commercial barriers you all to of vehicle each appreciate today. commercial and we confidence our incentives falling especially I growing. years for look their X.X% Operator, adopted time

Operator

today [Operator Mike D.A. We’ll hear Please Instructions] Shlisky go ahead. Davidson. first from at

Mike Shlisky

anything Good afternoon. other I made if there’s to there two-part no and the acquisitions you going from vehicles, of at do question. just need That’s question has invest you need is, And do in that of passed mean forward. substance might of at going sort gets no projects kind touch forward, have investments the different to made Reduction the of Act large funding you you to raising to I be see part. Is any it get any all thank Maybe I for signed, of capacity. first Inflation your that capital Lightning? be major comments without part here? don’t One, you. a about have in the but new production that capital the on actual first need? be capital assuming guess, assistance looking maybe and wanted the

Tim Reeser

of as and with Inflation probably of interesting. have a lot shareholders think I’ll verbiage, over with So which been pouring very and Reduction it is to go. more will there’s admit many I Mike the We read Act twice our still start the question, first I’ve you

both today, the some – of place what may some leveraging loan see So like opportunity. programs looks DOE we yes, time we’ve it be the with very in seen long a well There of that for with programs.

at and to continue that certainly we’ll so look And at continue to look opportunities.

your less than to there to point, may So traditional continue ensuring capitalized to be approaches others. remain we

evaluating think approach, I answer constantly is this. we the On the second are

big of, growth we around have the capital. working terms know, plans, we In requirements

We continue inventory to evolve as some it as get is we and can cases imagine, all is we’ve with other AR those on cases very and we in you In grow, leverage look AP. seen to continue more difficult.

one I think their got just anybody that ago lucky. who read analyst I successfully say inventory weeks synchronizes couple

think I some continue all forward. point – we a basis we’ll we will moving that do what we of more evaluate given these very we of just capital. daily at that on that aggressive we plans are have growth to But terms there things expect recognize to So some need need almost our in

Mike Shlisky

Okay.

that their the are also not get Then that customer it up topic. Or little check it some happened to the I ask during time? the the in Is looking didn’t the bank just Okay. efforts straight was quarter. that about more any of deliver for customer delay subsidy I a that color wanted in of on could straight the quarter?

Tim Reeser

not to But of can harder broadly that. things the subsidy these particular interest it getting when needed not their some had I time look And deals. good you financing was interest but the better. out in We’ve do have delays. are latter. were In more find those These in the cases, in become imagine some were obviously think subsidy customers specific find what’s ones Yes. shop rates, at these cases. some rates and you has and many more happened to to complicated with past, general,

the now combination time increases increased of So the rate capital right of well the and debt takes. complexity it as has both markets the interest the or as the inflation, markets

underestimated couple needed paperwork they how And the these customers of time a to signed. so much get

of As of that and shipped. now some customers those we been now we’ve built some indicated, and solved has

think we improvement, customer changing right So I terms we but now. very a certainly see are in world financing of some in

Mike Shlisky

Okay.

today? for about compared to compared recently I’ve this or one customers been uptime me. replacing? to on topic these ice promises about trucks How’s been last to of Can on customer uptime. some your reputations is even us One got share the hearing up the the you’ve that calls customer even the reputations trucks road quarter So for compared these to the or your the are time or better vehicles you

Tim Reeser

are one today we a we time. this Insights. announced an it’s software second. lot of generation our of we of these our spending next track question every something parts that the product. interesting the And So telematics, vehicles great and Lightning And It’s is new

are in we route, not are know are. they what So where only We they they doing? know

predictively they’re they’re used, know driven. driven. we or environments they’re We know and being maintenance see support being how also we see We anything we the how the if on see side being

belt that So we’ve beginning years to all our obviously under kind got data is formulate see. on uptime. see what what and are we of of that several really And we informing of now

years there’s today, years reliability. from depending the evolution, in with generally imagine can those you see of the And X, are products road three a road the is X, the X we’ve on even – thing our that refer as on changes. three some Generation each as significant we lot ago, our X, that other a products, in ago, from product, market, of we improvements X the generation, on often products Generation to are The

uptime. And some we put better today mature so that’s products where than us more a in see our XX% position of

there today standard complexities no of uptime vehicles commercial in the is is is measured. on One how

they include an when it replacing compare them, an ask ice of or Because like to customers, they’re like often when doing vehicle some how commercial downtime service, for we example, uptime measure do the they we things uptime? or do our tires, to that. So

vehicles quality terms taken it it you in So broadly get we a certainly most But we’ve bit point. has get some fast point certainly for exceeding very product to a industry, that. new proud whenever in committed we’re the But takes a us of cases pace. and do to made of progress have remain see improve ice a continuing bit ourselves to at today. to the to very And the certainly and of to approaching that

Mike Shlisky

Okay. it. for appreciate color I that thanks I’ll pass Well, along. really Tim. it

Operator

at Our Sabbahy come will El next question of Bank from America. Sherif

open. is line Your

Sherif El Sabbahy

afternoon. good Hi,

Tim Reeser

Good afternoon, Sherif.

Sherif El Sabbahy

little Afternoon. I first at the bit on a to get just color wanted more guide.

your units lasting from that were And that in units should assuming expect decline financing? if in the or QX we from out effect I’m pushed the So QX. sold any guide QX so, does include

Tim Reeser

It’s a that the by good question, Sherif, and I’d say, day. we’re still evaluating

is We working try with part it the of – some customers obviously to accelerate. are of to

this Now longer understand was has – taken than taking think it is gone we’ve where financing that through I we markedly now and previously. transition

getting assist more of timelines that that we’ve now our starting So in understand the started front more. we to new customers and much

as quarter do their a hit some longer we of So the take certainly those hit financing can look But and to in improve may the still challenges this in past. we little we we at bit not think place. get customers

of have Some problems. solved financing already them their

evaluating day. we’re that day So by

some guidance of we of vehicles, those we’ve So and know as not all already include in Teresa this whip partial of get assuming shipping But our shipped point, at already that inventory. that that QX are we’re them financing built in QX. their of said requirements the complete does some

we point this either at QX to expect all So be is in what QX. we or shipped them are indicating

Sherif El Sabbahy

third until quarter three essentially backlog, been over last growing the Understood. looking just at of and about then the then year, last And flat it quarters. it’s was the

remained orders front sales been of And Are bit of slowed So offset if has you large given that that’s me you or new the pipeline there? intake? you seeing guys, in could so – detail how cancellations you a flat long? give have for you could

Kash Sethi

that’s Yes. Hey, question. Sherif, good a

It’s every both of Couple months. sales every, cycles quarters long, track over of some fairly really. we the about. getting exciting a are you few hear are and we really mix you’ll mentioned close deals Something to next month those things

backlog we’ve both and a orders. had So jump of quarters, mix up cancellations will new and In previous down.

So it’s haven’t we shipped not We’ve that of orders already. three new new received quarters, and of some orders received for orders those not. course,

of Some price did inflationary not the maybe canceled orders not either customers, make we those or the incentive because anymore. other through sense did come because the that have a customer wanted to after for charge increases

We on which a because of a are to shortage the convert customers chassis really having look close in especially and we want when, industry. there’s

to selective now somewhat So revenue. focused customers on continuing good us to more backlog is not back. I’m keeping backlog customers, being holding have. we the to we’re new sign right on And how convert

right a We us matter pent deliver vehicles those to have on quality and the getting a executing lot high up Customers of new it’s the of now, engineering the want demand demand. materials is that programs, product.

Tim Reeser

add Sherif, that think at out of they programs, when bit And I’ll aspect. are that important is you way look there. many that have because often I it’s these timelines a subsidy an to

receive bus notice will subsidy advantage October. program wanting time So to receive the money EPA of they that for who’ve example, next as that our been the school customers the take

many in until we EPA sales expecting orders place order. although We they those last receive get the done purchase won’t them So work and over cases, get are year October. up no, teed notification an in we’ve those to the from the to customers

amount cycles. pent So a our there hear while up the on of backlog is that grant gets because people or delayed reasonable wait of to

QX. are cycles coming So there’s grant in those up significant of QX several or that

we some going of expect Kash to our dialogue, impact see those as backlog So on an in mentioned do his forward.

Sherif El Sabbahy

Thank pass you. it along. I’ll

Operator

at next, Colin Please sir. And ahead, Rusch we’ll from go Oppenheimer. hear

Colin Rusch

Thanks so much, guys.

how you forward improve continue to out to the but you able curious, efficiency, continue you’re manufacturing as and get processes? to look operational at move much of I you As know facility I’m guys

Tim Reeser

understanding is, correctly? you’re I there to And am of Colin. plant efficiency asking is question, good a out more question moving think I the what forward, squeeze manufacturing It’s the

Colin Rusch

Yes. cost of progress already you're efficiency the Correct. from like some terms chain? seems probably already in supply some And making that on of it driving

Tim Reeser

Yes.

I the bit you in things see think year things a one of people so that out we it's very started since to out of we've and come ago. recent, but you had on back a little have when been us the as the anxious many well,

bit about we things a a little press we've So Those gross talk goods for automation little take to cobots added the release margin. sold cost and floor. up our of additional in like thus those and to and show equipment bit

in up the of those, I when we've margin, So that done see gross a lot you still there's but and terms the quarters of next think – a shows as lot on impact to start several that in of more do. to

opportunity. So a of lot we see

of in vehicles. to this. better large And terms we've of significant automation volume. the OEMs the in reduction the we do labor the at quite you're early just still more, everybody the comes space, Everyday efficiency, course, us isn't there on some aspect very videos of of that whether labor floor, showed it the in of stage talking terms of about it, from Some in of do get we as frankly. of And are or EV each

quarter certainly So of probably we've but gotten already, in next to sold that? show two for gross get some everybody better. see we of cost yet far it Teresa, margin enough has goods there. and you'd the opportunity we're to from that, of thus real doesn't impact add that it, up anything or some in And – most

Teresa Covington

get Yes, the factory efficiency. Colin, I help think volume we one will really of the other as things too to in think is our labor can about

that it's have to the we impacts very we floor. things parts, and we to a the it's to substitute engineering the the have production involved part, of that not One just don't from chain, which means we but have see get disruptive supply

have that they in, We in parts come late. but come

a So that – we run them because able just them. in supply and not grow do scale load issues. of have our terms of lot been chain then and of the factories, to trying and We to level load that

labor if want steady we the have – volume And to the So, we volume coming as that that, I of lot inventory things through. is seeing labor efficiency some half as with that start get think is, look going the factory of we we're a the and to do the really load second some product. looking one out of can better we going of and to here, level to and at start the get chassis benefits, some we – costs see

Colin Rusch

not promises. that could seen them of to supplement Perfect. Super way promises of deliver those some but expect possibly have customers, that guys to helpful. bunch medium obviously build market platforms space, dynamics or on not customer and the a that given in for folks we've curious developed the time that folks folks electric activity with to just the they're I'm terms you are about to. replace of some able products some coming those to in niches, some a of or of you, if other to seeing on coming just of that lot the folks you and there's made And important then have duty trying

Tim Reeser

that the have been sense it's and go of stalled to us going it's good claim past Colin, out one because the many a product. the in people Yes, very that they're disruptors question, a in

now products then up cycle products these make features so and the it sales the of exist. I call prices potential comes starting out software starting is as or getting or out, elongated so of while instead And some all investigate through. point and our course the that, pause these Colin the on flow to what software vaporware And the that ends industry, of that system to you customers potential options vaporware take need people vaporware of promise to customers a benefits the fare products cycle don't and from investigate, will during often sales thankfully

potential big what's the products of while that good promises with or And customers customers down as way. do partner go certainly real turn figuring road many they've not now, we've process about continue was is cost countless years we're of be of so the those of ship are to never too sales and competitors not, one some partner, products this our got now these more that out we maybe to made one of OEMs there's come their of but be and be, some able went this with and to potential but it starting that has continue customer understated ship, deliver, now and even delivered. as to in we've or cycle vehicles us who what's back what elongated to two that spent examples or to important, exaggerated have through and seen, will true, that out to these this And some

And are so we out. seeing that play

guys will delivering We the who beneficiaries be people the other and aren't, now come customers you of okay, are go. say, back that let's

that increased So we in has But painful the it the that of in the feel end been well sense cycle. cycle it we're positioned, nearing is but cases. significantly some we sales think

Colin Rusch

Excellent. Appreciate it. Thanks guys.

Operator

ahead. Shlisky Davidson] And [D.A. the take Please up of go next, we'll coming a line Mike from follow

open you may is there Shlisky, are You with mute, line once Your on us? Hello, sir. us have sir. more, Mr.

Mike Shlisky

of Yes, much. like do That's Thank you to just me very that. course.

I we'll I that question. time. the that. my and Blue I C subsidies and Type envisioning important. in that's Type wonder school But seeing up ones area there. in is thought, the seeing activity major current And school $X kind always you're Sorry to I that more wanted taking bigger business I be bus follow it go. ask program the Collins Colin, Bus first might of that Bird more you're be the repowers if thinks that's that those the not where out at subsidy appreciate is about even billion a think about A bus customer

Tim Reeser

great That's a question.

you XX% EVs of look if buses, taking school the just at the diesel even two-thirds, and and Type Type are buses buses A gasoline like are of out, XX% more So market market. C

operations. is more fit there will for skewed are Type electric it towards no run looking just better I not agree to at when that fund They're it’s smaller electric, more EVs, shorter naturally C think than So that but comes a facts, doubt a new those XX/XX would more I Type routes, by because to buses to A. return money likely calling. buses are depot do despite

to enough Type big buses get get Type is more than going a see A, Type for C lot love, will A us excited. We D but to and for is Type XX% traction enough

Mike Shlisky

provide Blue different the scale, of parts three the appreciable enough far of repower, the it's in Okay. in are there once are to is volumes eChassis, eChassis, general, to all And the humming? Lightning the products three compare some the get sizes those then Bird for and on you commonality kind different but on when those going those,

Tim Reeser

them. components is think that the make all fast share we software, think powertrains, the important the another those product, of Yes. base all example, batteries And charging way I all them. it's all that for which share. X products, or and with those powertrain, Level of DC the we to We means with our like one of which across brackets We componentry things share share sort

can't. sort cases, cases components cases a in some shared. All of Obviously many some share can of those you motor, you are in in

of some require With motors. So generally it's we're that less our in shared thankfully, having motors, scenario example, platforms, very telematics, that just the then digital-dash but or we controllers, have adding commonality our in software, parts all that product all batteries, common does And some batteries across as of with more the different batteries analytics, for across those the is Lightning well. is our common platforms. our a

sharing a you applications capital, say, we there yes, So whether quite aren't where is sharing they have across look size. shared bit and across shared, or at of common

a a platform a shuttle school example, for about in over same significant of on a product shares powertrain bus on case, powertrain our So bus. our XX% the to is GM the

very the on some similar to Class So powertrain truck. you've a got X again work and

modularity and So leveraging spend we scale very at to and Teresa's parts to we ourselves common parts point. get have allow spend been as to successful creating

to scale the improving because modular absorption get and and the we coming labor creating As shared we dramatically we've success of in had cost platforms. see and down the overhead dramatically

Mike Shlisky

there. it leave I'll Thank Excellent. you.

Operator

Karner question Capital. come at from our James afternoon this Blue Valan will And next

James Valan

Good it afternoon. going? Hi, how's

Tim Reeser

morning, good James. Great,

James Valan

hoping you'd update and when your might early see that timetable of just on we Thank Forest was repower Blue I kind be be a River, able the reception business. customer would when would particularly income How Bird to provide statement. been hit little too an with be maybe I the maybe has you. some guess the

Tim Reeser

Yes.

that so we've have our first So, shipped we mentioned those big of I opportunities my bottom vehicle have buy both not some initial, certainly out repowers as brand in dialogue very our as carries the well of around advantage some already repower a Silicon kind sustainability first early to proposition. groups the the a compelling. to seen Valley recognizing come employees, having sustainability line new to is And shuttle as proposition

have a seen we the of a interest opportunity. also So look out certainly as pipeline we and transit higher is products company, for where those a our some an We've with lot repower from of of standpoint. the be bigger motor seen that. And we've come say, lot uptake But And in in buses. to a our coaches road those also cases, tend and lot price, sales more. on vehicles average and there's a

everybody with we're in early understanding of are. stages where think So very our the customers repowers still we

new I current think chassis accepting as we're in limitations, as The chassis. stages other customers thing of the early is, the far

to it customers three end they're of and waited to out was had going for many to look months at coming to going wait six while now thinking so a anymore that they're that look the hung of or terms kind can't fact to in and repower. months it. have at And And they

cycles remain practical our going said, also to And fact industry tend of on be this to year as ability be. a where about that we But bullish yes, do to is we the uptake the sales it. think Kash broadly the kind in repowering long. we're So

have a that it's product and just for it statement. in promise it. going good But quarter a to take indication to is announcing fact the So already good through flow a that see a little after we it certainly bit to half delivered income ago, we

James Valan

Great. Thank you.

Operator

this gentlemen, all thank teleconference. We for you and ladies And your does today's conclude participation.

of disconnect the that and may now your you your we enjoy rest hope You day. lines

Lightning eMotors (ZEVY) 10 Aug 222022 Q2 Earnings call transcript