Aeva Technologies, Inc. (NYSE:AEVA) Q3 2023 Earnings Call Transcript

So as we said earlier in the year, we set out to expand our manufacturing on the system-side. We are continuing now to bring in additional automation on the manufacturing of our LiDAR-on-Chip module, which is really the core and the heart of the product that goes — that we supply to iconization with our process. So that is the focus for us. I think in the next number of months as we get closer, we’ll be talking about updates on this — on the progress for this. But we have been working with Fabrinet and team. We have on site there to really prepare and to continue expanding the output and throughputs and focusing on the yields in our automated manufacturing line over there that we work towards.

Colin Rusch: Thanks so much. Appreciate it.

Operator: Thank you. The next question comes from Suji Desilva with ROTH Capital. Please go ahead.

Suji Desilva: Hi Soroush. Hi, Saurabh. Question on the top 10 OEM as well for me. I just want to be clear, the one you’re talking about here, is that the same one with the award win you announced and the perception stack. I just want to clarify that.

Soroush Dardashti: Yes. This is the same.

Suji Desilva: All the same, well, okay.

Soroush Dardashti: Yes. One that we’ve been talking about.

Suji Desilva: Great.

Soroush Dardashti: It’s not the only one that is hedged, obviously…

Suji Desilva: Understood.

Soroush Dardashti: There are multiple OEMs that are…

Suji Desilva: Understood. And then so for this OEM, have you specified whether this engagement is for a broad platform win for the OEM that will be multiple models and across whether it’s a target sort of vehicle, just to understand if you’ve kind of clarified the breadth of your opportunity here.

Soroush Dardashti: Yes. No, we have not discussed that. I think that will be, I think, the right opportunity in the future as we go towards the final decision coming up. But what I can tell you is, obviously, the opportunity is from a top 10 OEM with large volumes and with production in middle of the decade as we’ve talked about. So this is not some sort of a pilot program or something like that, that we’re talking about here.

Suji Desilva: Okay. That color definitely helps. And then lastly, on the OEM or just in general, with the auto OEM waterfall wins, is there anything that gets easier after you secure this first one publicly to start kind of delivering to them in terms of the second, third and fourth in? Just want to understand how that might be or whether they’re each kind of fresh starts.

Soroush Dardashti: Yes. Well, first of all, I think, hopefully, you can see some of the trend already happening, right? So we’ve been talking about our progress and momentum in the space, and converting additional programs to wins. This week, we announced not one, but two in each sector. And we’re really excited about that. And these are folks that for example, in May’s case have been using some of that before and are familiar with virus. So I think that’s where we see opportunity and the progress to actually be able to move faster because folks have experience, they know what they’re doing, that they do most for some comments that they can also appreciate the advantages in terms of what they can see that helps them — enable them to expand their operations, gave up their deployments and all of that.

So — and we absolutely believe that with all the work that we’re doing here with, I think, really the breakthrough past few months that we’ve had on the heels of two OEM wins, expanding our Board automotive experience with Dr. Sommer coming on and his renowned experience in the space as CEO of ZF and Board Member at Volkswagen as well as bolstering the balance sheet, all of this really helps us to position Aeva in a really strong position to win additional programs as we go towards production and also give confidence that our customers that are looking at a select few players that cannot just win something, but also be there beyond the SOP to support them. And that’s really what we’re doing here in a multistep approach. So, that’s what I can say.