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

And I think, obviously, we do believe that with us delivering on a first large kind of OEM program win subsequent ones are going to be that much more streamlined to get and move on from there.

Suji Desilva: Okay. Very helpful Soroush. Thank you.

Operator: Thank you. The next question is from Richard Shannon with Craig-Hallum. Please go ahead.

Richard Shannon: Hi guys. Thanks for taking my questions as well. Maybe we’ll hit on the top 10 OEM here. Soroush, I think your language was — you were down selected in this past quarter. Does that mean you’re the only supplier remaining that they’re looking at? Or are there others?

Soroush Dardashti: So, look, at the end of the day, we never know in terms of what the customer does and that is not something that necessarily we look at. I think what we really look at is, there has been actually multiple layers of down-selection that’s happened. At this stage, we’re in the final phase. And as I mentioned, with the decision coming up in the next quarter. But also importantly, we haven’t worked with OEM for some time and they have already started deploying our sensing technology on their vehicles and which actually replaces some of our technology as we have talked about in the past, right? So, that is what I can say right now that gives us that additional further information and support that we’re looking for.

So, obviously, we’re also working on around providing some of our perception and collaborating with the OEM on the perception to really utilize MCW advantages, improving the velocity, and since the last time we spoke, of course, OEM has also deployed with our LiDAR on additional vehicles that they have continued to build. So, a number of things happening, but I think that would stop there for the information.

Richard Shannon: Okay. Fair enough. Appreciate that color. My follow-on question here is related to May Mobility. How do we think of them in terms of the ultimate scale of opportunity that exists with them through 2028? I don’t know if this is something that’s even within our and magnitude of a typical automotive OEM you’re going with? Any way you could give us some color on hoping that could be relatively speaking.

Soroush Dardashti -: Sure. Happy to. So let me give you a little bit of color about May and answer your question hopefully there. So obviously, we’re very excited about this. It’s one of the first deployments for us in mobile sector, starting with our deployment or this year. And then we give a little bit of background on me and kind of give you some context about the size and the comparison you mentioned. So first of all, May has been around for a long time, been working with a number of players and they’re partnered with some of the largest automotive companies, including Toyota. They’re operating paid autonomous rights today of four states with more coming next year. And they have done over 350,000 rights and are taking a more measured approach when it comes to scaling as compared to some of the other players really through paid contracts in new municipalities and cities and in terms of scale, I may have talked about this, they’re scaling the operations by thousands of vehicles in the next few years here.

And again, what they see in Aeva is the unique FMCW approach, enabling them really to expand their current odds or operating design domains from where they are now to really enable the scaling, as they continue to expand. And so we’re talking about here the multiyear production deal in which Aeva is the exclusive long lived by our supplier for many vehicles globally. We have minimum volume commitments starting from this quarter every year through the end 2028. And in terms of the size of this opportunity, we actually believe this is similar to the potential size of some of the initial luxury passenger vehicle programs that are coming to the market. And that’s what we can say, again, may have probably about 1,000 vehicles. We’re talking about multiple LiDAR per vehicle.