And I have told before that batteries, we are in our second generation, every generation, we will improve costs. And we will not be in a business until we are convinced we can meet that our model, the gross margin, the company operating model. So, on batteries, we are continuously working on it. Our third-generation battery will be better than the second-generation battery. We already have a plan on the fourth-generation battery to reduce energy intensity significantly, so that will be even better. So, it’s a continuous program. And your second
Raghu Belur: Utilization.
Badri Kothandaraman: Okay. Utilization, utilization is to first order negligible impact. Those are the contracts that we have with our partners.
Julien Dumoulin-Smith: Got it. Alright. Great stuff. And then just if you can comment just quickly on just obviously, loan versus lease the evolution, what’s your ability to deviate and press volumes into the lease markets here if you think about it that way versus just helping and enabling your loan customer.
Badri Kothandaraman: We do business with a number of installers who offer leasing. And with some of those we have 100% share. With some of those, we have a healthy share mix. So overall, we are very well positioned. We have a significant shift between loan and lease. I don’t think we will miss a beat.
Julien Dumoulin-Smith: Got it. Great confidence. Thank you.
Operator: The next question comes from Eric Stine of Craig-Hallum. Please go ahead.
Eric Stine: Hi, everyone. Thanks for sneaking me in here. So maybe just on the contract manufacturing coming back to the U.S. Obviously, with that, with Romania coming on, it’s about better servicing the customer and lead times. But I am just curious, I mean, is there any margin benefit to that as well, you have been servicing global from Asia and Mexico to this point, any benefit from being closer to the customer?
Badri Kothandaraman: Net-net, it is a wash because if you think about it, it depends upon where the raw materials come from. So if you have manufacturing, for example, in Europe, unless you move all the raw material factories to Europe, to a first order, you will not get that benefit. So basically, you have to look at it as the full chain where your total cost is a function of how you transport the raw materials, then you make the product and then you ship the product to your customers. So in the case of Romania, yes, we are closer to the customers, but you do need to get raw materials to the factory. So I would say it is a wash. It is a wash. It’s not significant enough to talk about, but it will become significant if we are able to do exactly what I said, which is us, if we are large enough and if we are able to convince some of our €“ some of the suppliers to move factories to open up factories closer to the manufacturing area, definitely, there is some cost to be taken out.
Eric Stine: Any indications that, that is starting to happen. I mean, people come into the U.S. the tax credits and that sort of thing?
Badri Kothandaraman: Yes. As we get bigger and bigger, those will eventually happen. Right now, it is a process. I can’t tell you that it’s an event. It will happen one fine day. But for example, in Mexico, we have started to see that. Some of our suppliers have setup factories for enclosure, for example, or for connectors, they have started to setup. We are realizing some gain there, but it is an evolution.
Eric Stine: Okay, thank you.
Badri Kothandaraman: Thank you.
Operator: The next question comes from Maheep Mandloi of Credit Suisse. Please go ahead.
Unidentified Analyst: Hey, thanks for squeezing me in. This is David Benjamin on the line for Maheep Mandloi. I was wondering if you could give us a little insight into the mix for Europe in Q1?
