- Earnings call transcript Q3 2022

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Operator

Greetings, and welcome to the Lightning eMotors' Third Quarter 2022 Earnings Results Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the call over to Brian Smith, Vice President of Investor Relations. you. Thank

begin. may You

Brian Smith

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

Timothy Reeser

of on provide and our Slide our X will and and our begin agenda. Brian, a from I'll drive us to the off Thank with with on wrap Kash stacks example a including Lightning, a financial markets, on managing margin development incentives an today. progress focus the highlights initiatives, then I'll and David of overview. quarter, new for business update to joining chain today's some discussion thanks accelerated of will supply sales how discussion gross products an you, an overview everyone on with landscape and improvements. of up start up

At than Moving summary was higher record to Slide million, our from the XX% a a our revenue previous and record was one-year-ago. $XX.X of QX X, quarter.

executed the vehicles, is more in quarter, from team very production production double year-ago. Our our well XXX which producing than a

now from we he an We David is are and our financial on Agatston Chief growth systems have inorganic CFO hiring an joined as impact talent, instituted, former by focused accelerated making executive, support Teresa, and finance talent XXXX. in that us and infrastructure our he and with is excited technology top on that inception Officer. has the the and solid disciplines and organic building Financial and already is augmenting attracting to David that experienced

full eMotors continues manufacturer the including X believe Lightning buses, X. of Slide motorcoaches. to be and ambulances, the vehicles Moving in X through Class We utility range market, only school to buses trucks, zero shuttle emission

over classes with hybrid only XXX and the million have zero zero driven shipping company emission in XXXX today. our these are shipped in vehicles We all customers. vehicle X.X of We now commercial products over solutions by with emission started miles currently

and offerings. us ICE ZEVs designing designing, and in-volume peers, and now ZEVs as commercial Our and we of earlier a experience alongside our vehicle move than produce allowed our lead range advancing to up wide current powertrain to has by chassis start to competitive a own our with strategy and us electrifying our powertrains, selling building giving ground manufacturing

offerings cost reliability, capabilities. our our and heavily and of We continue support to in invest current and powertrains, to and our reduce platforms perfect develop engineering new vehicle service and R&D expand commercial the and improve

X X. Slides to and Moving

market to solutions. with us built hardware and customized architecture and serve highly software cost have a allows effective that modular segmented We a

not high of not historically and for. that something and that for electric legacy are is is required suited level offered OEMs vehicles have hardware Our well software customization commercial

You deep Slide can powertrain production shows of X of vehicle see from full either to Slide our software or be platforms enabled the range expertise. X in ecosystem and our integration broad solutions full XXXX. vehicle expected production Lightning's suite electrification and in already in by

in to fulfillment lineup vehicle delivery XXX a Canada XX. our products Canada. in and the U.S. vehicles Since company Moving call, and strong last GoBolt, new partnerships, we've a mile Slide with sustainable including last announced earnings deal delivery of and based for

motorcoach Lightning to new customers that vehicle tested successful And life transportation, a We of less a Class our Canada, at vehicles, powertrain incentive announced the turns and entire repower which a and bus applications masterpiece. and and X we last highly we programs announced Transport our funding a of the into eMotors two cost the opportunities additional generation double-decker federal demonstration week, built repower than creating the leverage half second registered emission and This polluting X last for designed single for for over just offering builds extends buses institution promoting responsible on also zero for large has Canadian motorcoaches, years. environmentally portfolio. a

XX, Moving discuss landscape. supply to Slide let's the chain

due The support and/or as previously, quality new improve require new agreements and on configurations, dynamic, As benefit inventory safety. situation we and range have more reduce new price given supply stated today. as remains are hand battery however, well year limited to and in both were battery may a which platforms on much shape we the last as to batteries platform better from partnership

phosphate which large manganese have increase We see and to mid-year are price and with stabilization pack XXX-volt price cobalt-based a both lithium-ion options. after both working on begun nickel XXX-volt batteries, configurations

for offerings. technology partnerships lot. now XXX pleased proprietary chemistries on over for built supply availability with are into systems LFP we have better QX both new to We our and much our battery currently agreements have some QX chassis, safety with battery and platform agreements long-term chassis our with On

expect customers this readying produce are Class platforms, teams line engineering to the production which to GM first and our manufacturing deliver Our quarter. to we X

our addition, eChassis, Blue powertrains second production are and of on Bird for eChassis target Lightning XXXX. in the half In

with to air lower cost to seeing our high work new help chassis supply the such and chain batteries, we conditioners, management reduce cost voltage for diversify are high heaters, we and heat production continue voltage components Beyond times parts. suppliers to and as higher lead and and pumps thermal

Turning to Slide XX.

of while again incentives to and seeing momentum last in orders, hit EPA an now waited are past We pause the market. increase electrification towards the FTA in year a new vehicles for brief the after customers commercial

trucks now Act, of awarded, tax its to these vehicles Class addition in zero Reduction funded during are alignment IRA's In to scope close which with we larger X and QX Inflation emission our is with given accelerate federal being of by for the zero customers Act the IRA incentives wide XXXX their the and Infrastructure other efforts believe to benefit We buses. to the passing vehicle credit $XX,XXX will manufacturers to Lightning portfolio. the new more motivating the programs commercial transition emission vehicle believe than

XX. to Slide Turning

Let's the progress are business making discuss model margin. our toward we and gross reaching positive

enabling Our labor growing both sales are and efficiencies. production supplier cost and reductions volumes

progress engineering reductions cost teams manufacturing Our engineering via making work. and material manufacturing down and in cost automation unit are

of units continues absorb progressing our our we to sales per reducing need We capacity overhead the to our and that growth absorb our production sales overhead growth fully approach overhead our shift to fully past toward in that and have X,XXX our goal, annual allocation single said – unit.

has Finally, directly. of will by absorbed across grants rather our prices than which product customers increased and some Lightning our be lines, incentives government by

update half market the reach we With a at gross to expect to second now our of sales it turn look I'll during drive provide markets, incentives positive these an momentum of how to margin to acceleration. the products, up And now changes, XXXX. stack and Kash

Kash Sethi

Slide Thanks, XX. begin on I'll Tim.

in glad multiple unlike still many and vehicle verticals real we deploy prototype who peers zero report to development to emission I'm and that world First, across environments commercial our continue of market early applications. testing, in are vehicles

of deployed X.X a on million growing road, XXX rapidly crossed every Our collective the vehicles fleet miles week. number over recently a

market demand XX, school shown new vans, emission core We and passenger repeat verticals sign orders, strong Slide on continue receive to delivery generate our and buses zero shuttle new products for customers, vans, and buses. trucks, orders cargo

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

repowers. expanding leveraging our specialty strategic our have a vehicle partnerships and networks. new of by and range wide brand extensive like with vehicle Collins market expanding step network motorcoach On engage vans, River distribution OEMs reputation partnerships, show we and transit partners leading and Forest and customers is Slide and bus, builders some dealer and enabled ambulances, RVs, with applications Our us to XX,

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

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

forces that on provide I'll emission of to Slide to to turn XX vehicles. an commercial adoption update Now drive continue zero

and Rule, Airport a message and and in be MOU Canada Transit zero U.S. to all continue Shuttle and to are a vehicles ambition. mandates emissions. First, future XX-state zero government emission market. Rule, delivering the regulations across grow must strong Regulation, The California's on the Act scope

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

to industry's programs are the electrification. drive program the new School Clean federal New towards mechanisms Bus like EPA's Canada's helping and all expedite

to their And multiple not XX, corporate of upfront on working results tax look $XX,XXX programs projects with these see mentioned fully emissions Last it to customers due electric grant cycles expected cost for ambitions societal to in but with goals. We see forward how over helping meet carbon new Combining to orders public them have last many to leverage next fleets are turn of update Slide reductions transit to school various help towards transportation. our coming months and logistics, the leverage you and will forward XX We and march able including I'll and by other, David pattern months. outlook. applaud the paying offset working the products these many These cases, six state and several these by sustainability that, We with companies' are develop industries, stackable continue in projects their can federal and and an grants the these going in We our them vehicle. completely lengthy motivated look can each mile been financial Lightning's across grant electrification in Tim. to many provide programs IRA that credit to customers. the timelines. and with to grants leverage with On goals. the this least, result to

David Agatston

results I quarter our outlook. by Kash. our Slide now on third followed fourth XX. will Thanks, commentary quarter provide on some Beginning

the and from quarter XXX XX% quarter, we million to sold period points better third quarter, year-ago of $XX.X XXX the million, increased XX. Lightning For percentage revenues was better due vehicles the higher margin last gross volume than produced In utilization. and generated factory and $X.X which basis sequentially. The

As period. loss of compared year on change expenses on Tim overhead, quarter can was positive fixed net material XX. the the prior cost gross to million period. focused $X.X A a adjusted through higher $XX cost The second for in adjusted highlighted, operating ran operational to leverage driving towards primarily on prices, Slide labor EBITDA we to EBITDA found reductions, reconciliation current production. the is and as million and related we higher in a the be efficiency remain margin loss loss The income

$XX.X Lightning XX. cash months. credit by our ended of is with the the cash line to XX fund bit a ourselves million sufficient equity Slide million to in implementing We a operations which the believe equivalence, next in more quarter. third quarter cushion $XX we for Turning and gave

The quarter. We ability third our from have finished number it, purchased at for $XX.X we batteries drawn I about and Net stems not was fourth $X.X yet future have also higher chassis will and needed. level million end of but support the quarter of primarily the million. goods. outlook larger On summarize the to we XX, of so growth Slide inventory the do if on inventory to the

XXX in powertrain of a to revenues units, the and vehicle mostly experience been near-term, mitigated revenue. chassis for with timing XXXX, range to challenges the $XX chain supply on to While to the any of in production range supply we XXX XX, other components. components these issues our in of be certain associated be Based battery to and $XX be million Delays and range the impact we continue current the powertrain million, system expect to in of may have the sales December of to quarter conditions, XXX vehicle XXX units. with ending

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

Timothy Reeser

eMotors our remain I David. we you, outlook Thank the to Lightning continue about strategy. very execute as for excited

many or still put working hands on duty anyone first manufacturing more their on commercial than first their to working U.S. of medium our in have build customers’ vehicles, are the emission While road vehicles peers else. we and production facilities zero

products, We are introducing and accelerating pushing our towards positive new margin. production scale gross

is Our critical investments which industry acquisitions transforming, to through presenting opportunities us is achieve scale. and with

near a energized, The and passionate space are path EV future profitability. We and and day moving falling long-term and adoption team have widespread with to government to commercial a incentive the vision, growth barriers the is a each are solid and a with velocity vehicle towards in strong clear growing. Lightning that programs passes focused, strategy,

by confidence our our and environment. success employees in are now our for today today. have commercial to products I time investment the least shareholders our who support. a And of The level most executing horizon, a for which very thanking of on our we inflection operating your especially is through return for programs, compelling their Operator, at provide to fact an a at five-year that these for for EVs. high point provide ICE regardless of Although ahead. years their confidence are of to finish gives all want elections I like politics, I their see contributions even everyone. would expect that, partners subsidies. you, counterparts these ready challenging company's thank or to that without us strong Lightning, accelerated questions. customers their thank to future we versus This a appreciate lines with many our open growth

Operator

you. Thank

proceed will be Shlisky a question your Mike first conducting session. with Instructions] We Our now question-and-answer Please questions. line the D.A. from [Operator of comes Davidson. with

Michael Shlisky

et quarter, appreciable of that and XXXX taking appreciable for parts, point? afternoon, any my third non-truck and you like this at charging, thank data such any in Good Hello. whether the – for revenues there as tell any start we cetera, services, questions. Could to were if you should me model numbers

David Agatston

But We streams very quarter. next thanks the – up some the have we certainly question minimal half first revenues year. certainly into to of revenue those see Mike, picking – in of

Michael Shlisky

also comments and to some earlier, and margin. Okay. positive margin to your trying about looking just at And gross of triangulate it – get takes of Tim, the XXXX, how a [indiscernible] then kind gross to

is will kind progression or from really shipments appropriate see way, goes accelerate major sequentially go that in a any through that very of else year, next where much start to something there starter's some of either the it kind contract some things we a at As higher off or into gun during year? a happens kick expect sales gear is large to steady of quarter-to-quarter or point

Timothy Reeser

out. pre-supply nature so for is And shifted tradition to years coming Mike. and have was chain as QX we the gears awful time, especially revenue covered most very And of historically, to and was pre-COVID lot Thanks, of QX I know the tends that one vehicles model commercial of new shifted, and you've issues and industrials a the long you're advantages revenue came accustomed revenue, out. lot of new a cyclical model the be of the

think bit I start to that. we'll to return a

Some of new new release forward platform attractive is see a it availability, today. we market that as the function that are in products we very of going some

little a the while of cyclical. and Some incentives tend as ground to they be and to function grants of take a it these is hit

the grants twice is place EPA their and customers awards, following orders. the that to are three typically months So grants after some and the six actually awarded year then a FTA the when

delivery platform bank and offerings. the on bank will see I pretty incentive both around new So cyclical we think the order and cycles a forward moving

returning expect. I to think is I more would what loaded a backend years So bit

Michael Shlisky

like terms burn] Okay. of Got real give what couple cash look burn you over rate it. a [In quick. the quarters? the cash of for the, next Can us feel might

David Agatston

We're or this be whether seeing on will think pretty average efficiencies, see Obviously, downs equivalent would hard quarters labor of probably but be the close. to last quarter in not. volumes would and look I be to it's dependent terms will volumes. of it benefit two – some cost the

Michael Shlisky

All right.

last Just one squeeze here. one in

just As I with [could but seems actually uptime reliable or your heard you've who performing people talk that sense] complaints, how vehicles, from of or ICE us recently? [indiscernible] models driving compared a has the Lightning a with they're warranty vehicles them, no they happy lot kind of year the customers off? from vehicles taking previous any you of Have relatively to you've high got for are been here have give place what everyone like, that you either costs

Timothy Reeser

Yes.

building that and customer bigger model. it service and remarks a we ensure actively organizations my touch high Something prepared are mentioned I in bigger to

it's I'm So team's about about. our something passionate and passionate

We frankly people investments teams quality, as imagine sequential months and last what made last as production make are we're our significant we've today. very you the the time, versus made have And products in investments. over better we who before public, had been lower suppliers quality in seen kind these improvement the have XXXX and we significant and volume, over quality very assurance, improvements we market and saw XXXX since XX we that can able year large and of to better when products significant in as aren't reliable going previously over early producing seeing certainly

investment the in low [indiscernible] improvements chain long-term, path, our well suppliers we're OEM, we certainly teams. higher – from way the given as our supply that in but warranty we have at but seeing see a than making warranty crazy, in we're not ourselves both we're cost, we're and more look don't a little very pretty making path legacy in and the reserves, So investments we remain we and to in as – a traditional warranty quality a

Michael Shlisky

appreciate there. it I leave the I'll discussion. Tim, Great.

David Agatston

the questions, Thanks Mike. for

Operator

you. Thank

the comes with Please proceed America. of from your questions. with El Sherif line question next Bank Sabbahy Our of

Sherif El Sabbahy

Hi. Good everyone. evening,

wanted on So of I touch some mentioned. just to cyclicality you the

at few flat quarters. been looking So for a fairly it's backlog,

mentioned expectation a an of You've some return cyclicality. to

So beginning cancellations customers might in to drivers of there delays sales on is anything coming that's of that there? the or or there versus any the their offsetting with some EV be behaviors we're demand adoption that of seeing is weigh changing purchasing up are some that production are structural

Kash Sethi

Kash. Sherif, this is Hey, Yes.

they purchase providing very grants funding. up XX% kind FTA cost cyclical of nature of when the mean, customers You XXX% the they're a programs, and the I meaningful sweetener. some orders make X%, touched when of X% some right. and the just bulk their timing is to deliveries. other drives to of it, of of EPA The decision. vehicle really firm rationale and the purchase not the the want This

that, cycles a of an when in, timing customers we've a order, these or a over the to these just to efforts given next go help due grants. demo, a to last for the dictate the in So various from months orders the that some to in apply increase quote, we so, of expecting It's put purchase are six months six to we delivery. a

Timothy Reeser

is talking here the But approximately billions pure look down. FTA, in of in this you seen – I worldwide think for put if I billion it $X if that other has put an both. of or China at saw in day. Tim, EPA, dollars never what billions than perspective really certainly about We've the And dollars volumes, history dollars in dollar Sherif, kind you interesting other the of anything we're

I the grant needed the demand, needed all the problem increase. of cost see that supply in dwarfs have moving the traditionally, demand even snowball get HVIP such pins and were you're this for same momentum grant, But this the And this to get for of justify Nonetheless, the have is in imagine all the is vehicle you to versus very commercial that magnitude – because grants. these cost around a dwarfs, in without is, to solves return to its we can if to meantime, we collecting faced, XX%, it off which to and we've that needles you dependent the a even volume don't seen this down and the we past investment compelling if make investment increase forward top But this to on get do grants and we've go happening funding you need case. down, really cost to on gets going on hill grant a and curve electric a can you it very this ever grants. all catalyst compelling over grants you these what CFO, and sustainable don't past. anything funding, until vehicles need own said, even get Certainly, it. it the order Hey, if the have [dwarfs] hold the if IRA post we you're significant these the business we going and the get creating Now, subsidy down demand the

out So of be that's get But in because kind the the money. business won't certainly, kind to significant us to think kind pent-up part why XX that. obviously, need and you see of months, at a awarded and cycle. with the of such won't of see the all amount I lot it's anymore, these next, of tell we and go of the the a a cycles that it you'll mercy in XX of demand But years, of cycle for

Sherif El Sabbahy

the credit? the the you Understood. And take of just then actions last on under about just of any bit annualized more, has million $XX cash few equity over expect million. other got cash $XX established a line cash you've Do burn touching burn besides given been quarters hand on the now, to

David Agatston

aware when debt certainly us looking opportunities of opportunistically help actively what This that Thanks can and May do, XXXX, looking of the Obviously, the we're due certainly in see is comes can David. for question. there. we're we constantly to for we're

Sherif El Sabbahy

you very much. Understood. Thank

Timothy Reeser

you, Thank Sherif.

Operator

you. Thank

Oppenheimer. comes from Our with question of line Rusch next proceed questions. with Colin the Please your

Colin Rusch

guys. Thanks so much

then landscape there, the new about the and seeing rate? in win any the trend out competitive As can you talk of situations, little also if on competitive and your bidding players a evolution bit are line you you're guys

Kash Sethi

this Colin, Kash. Hey, Yes. for Thanks the is question.

different thing that, have one in of So a lot one about Tim's is us of products. you notice unique slide, we

are only competitors in Some those one two products. or of active

our kind a a they're different We but situation Our a different of in the them from Ford vans buses. than I bigger Class van is Cargo spend not to cheap shuttle similar market Class than vertical school you're GM. Ford different maybe payload, but vans that as based ours, three X on go customers offered product customer. varies X or But right? see I than vehicle higher cargo Class bit legacy doesn't vans enough talking get my as enough buckets, bucket buy competitive that more X it Do range are from that So with higher money operations, creates go Lightning? conversation OEMs by which is do about. much cheaper way. same XX/XX buses I'll a far, modify slightly They're like and the to

for Class opt Some X customers cheaper the vehicle.

OEMs, extra in EV range, Some segments, that They climates. customers we traditional that into competitors categories realize they to weather Duty or don't and legacy flavors. cold come our compete with really especially similar need other companies Medium our scale. our In

road, customer. to well products time, it problem have space somewhat delivering real looking years, Over lower with a been customers at they'll One becomes defies four similar They'll from demo but Pretty whole offer. press and competitors few the our one may on just and that is pricing. competitors. certainly deal when distraction competitors us, to a hardest claim a they today them ours, price specs or a business products and presence of the running of in for with a they compete where a to lot in a see them are or a a get range We very where solves is This demos. competitor, have they product, right the of category of much lot calculations, are five trade becomes shows this per with win my good then with and but great probably take the with. last physics on see and of conversation. releases, and are live not every and because These websites a second the our But we by demo cannot that from there. logic most they

So which about. winded on but different answer, market sorry talking for it's and it's the long we're complicated based

Colin Rusch

then of Because availability, I that. some decisions you're a by schedule, terms the demand what chassis build are is being push and this looks obviously building on right excess in well the but build appreciate the what to And of pipeline off? the you how like detail driven point. it and on making at production guys of to in this

Timothy Reeser

Yes.

we the we you imagine, And to Kash to variables team those and so job and our and think at a it quarter, to Brian some arises, analyzing answer. on we and and the up we what the you, backlog week, has coming our opportunity available can answer the hear come cetera. then where into seen sitting you've we the anyone, are the dynamic a make and I have team Barron you've each et can we so quarter, goes week, look thing of supply look margins down, obstacle the and as from on all profit of up that that with a an terms for really months, week, business Colin, does to and of at you complicated great new the bucket any is because to at As what basis. a at look team while, twice are, and on very of And great with evolution or given can on imagine the it's manage so make an the like look but in kind our Obviously, followed how we at look this. chain best it,

very a we is on big margin soon focused said So key, gross margin getting we're as positive possible. to as as

about we they this customers spend so a a some your where customer And the getting when the you lot is, looking spend a time lot you've them of time repeat but customer and at want time market, a be in got of need first to because first that with lot also it's product.

time So demo their one We or the a they as Kash sales turnaround first customers they'll first we buy as sometimes there. as fast can these fast those their XXX next will get sometimes buy – done or can a want take quickly get that mentioned in XX. to in first cycle, a five a or so their their and

with the the have one, what hand those is, and one So you – that's all because of on biggest challenges. mentioned what as the play to up the come biggest on sell But calculation mix been chassis, that's into we of especially today. we

X available. or says, a what it at is, usually other I'll X, we don't I have and the I but have hey, got there, one, where I mix a that, one, white and till say the – sometimes Class exactly times sometimes a a got work, a have we and got red I bus go that customer I've then don't opportunity So starts customer a to Class make want but wait or I we don't is that, looks a truck, to or I've demand sometimes have the

Colin Rusch

OpEx. me the around for Okay. the just is one And then last really

augment spending forward guys the you like are areas here? incremental and here we there see feel where As to need carry you you particular some scale, team as

David Agatston

the the also cost the engineering development I downsides. to in And with keep pipeline. helps product and engineering mean, research some team and

not only to the help but engineers and business. with take with identify cost ways of helping manufacturing us help to out manufacturing products, So they working new

Colin Rusch

Okay. of the I'll lot Thanks a guys. take offline. that rest

Timothy Reeser

Thank you, Colin.

Operator

Thank you.

Northland line your the Please next with with Our from of question Sinha proceed comes Financials. questions. Abhi

Abhishek Sinha

you to for give idea how IRA thanks of sale like if impact about now the I you prior Hi, to powertrain mind IRA trending? had wanted just on think sales, understand the things could us versus the some Quickly taking mean, question. that to earlier Yes. are in way what versus vehicles

Timothy Reeser

hear from you, Great you. Thank Abhi. to

be evaluating I vehicle, mix. top look they and powertrain, available bus and when think as vehicle, see grant that still for gets we're EPA it then out who it. that sometimes School that puts on we in just a to state out vehicle it – we Collins then and like partner and Keep powertrain a we is money to mind, potentially of constantly turns both a school we'll sell a sell IRA Bus in

to see As lead free vehicle. example, Kash’s could potentially it you could from a

just built electric because benefits the from grant even ultimately, that that that. the to without we've our powertrain, way the some And side powertrain. we exist doesn't still from our customer back get So though pricing money power all

our we're vehicle we of So are a the do cases EV that benefit. Historically, powertrain margin. can we there look think partnerships sometimes deeper up we're we've dilute other evaluating side, what the in with should chassis dilutes selling the Bird, – But rather maximize our with some our business obviously doing can In be chassis and Where having we're the when picking and that margin. on we vehicle eChassis, in a as like top-end. we improve out, as the – we more where side Blue constantly forward both talked margin, chassis cases, we margin? a our move we like than own and

evaluating, what's but out it's maximize we for of think a question business landscape, are the the good incentive where our partnerships of margin? things I do. one all we're are our which with neutral broader available, in there, really how can It's those So we terms

Abhishek Sinha

how even chain no if mean, the range been much in I it have you then that and to much supply would've been follow-up, the Or levels, in supply there? think Right. do just impact same pre-COVID we the already baked if guidance impact, impact you the there you is how was would've Sure. Or in guidance guidance? chain And are have?

Timothy Reeser

of a an couple still for reasons. impact It's

think and as the them EVs that. getting very it's only to golden a screw where not any call in and China, from has is missing whether people exception still real. obviously. one challenge some China about putting I'd it systems else today part. normal you ongoing And direct we're not hear are world even no know, you you're to still and we indirectly, from parts everybody most or come kind you that back putting I it's of where are you It's where systems frankly, to read what indirect, time business in just together. Any One need be of you're together

can second get are infotainment hear continue have cautiousness that the get is the can that the chassis. from constrained, and So chassis the we are and everything screens legacy all in are some we that And constrained other to around and parts axles – certainly we parts cautiousness OEM the around manufacturers vehicle. to fashion chassis from

the so a an our place in part much but that were off or XX% and number because some at chassis higher of probably it I number, or just it's business just numbers we to become say So XX% systems. be today it's could to we constraints I the subtractive, additive cuff on didn't we of a if – have don't of other play hard have on think, we if put XX% XX% to I'd

Abhishek Sinha

Thank have. much. I you That's very Okay. all Perfect.

Operator

this Thank conclude you. further are does at your today's with appreciate time. no that, teleconference. this There And participation. We questions

at of lines day. this time. your rest disconnect may your You Enjoy the

Lightning eMotors (ZEVY) 8 Nov 222022 Q3 Earnings call transcript