So these unfortunately growing pains and we are addressing all these different areas so we can also mature our systems, hire more people, hire more talent to address all these different areas, and it’s a work in progress. We are working tirelessly, very hard to get the queue done, so more to come on that.
Operator: Your next question comes from the line of Nick Amicucci of Cowen. Your line is open.
Nick Amicucci: Hey, everyone. Just a couple for me. Just thinking about just in regards to all of this hiring 20 to 30 people a week, yet only a $20 million increase in SG&A and kind of operating expenses staying flat, just wanted to know how to kind of think about that, given the SG&A level in 3Q and how we should think about it going into 4Q. And then along the same lines, increasing your real estate footprint across different geographies, yet CapEx is decreasing. So just wanted to kind of round out those operating expenses and understand what we could kind of think of as run rate.
Geeta Gupta-Fisker: Yes. So I think on SG&A, it will absolutely continue to increase because we are going to continue to hire people, hire technicians, tools. We are going to continue to lease facilities. We are not buying real estate so we don’t own real estate on the books. The main CapEx is obviously any refurb or any list or any tools we put in. That’s, to be honest, not that major compared to the overall facility and payroll and hiring people within that facility. So we will continue to expand our footprint. And obviously, at some point, there is a ratio of how many sales agents and how many delivery agents and how many service agents you have. But the one lesson that we definitely learned is that we are going to over capacitize so we can provide a stellar service to our customers.
So when we look at our next production ramp or we add additional models, we are prepared and ready. So I think that we could have potentially invested in real estate and started hiring maybe a couple of quarters earlier, but we did not foresee that the delivery infrastructure or service infrastructure or permitting would be so difficult. So I would expect SG&A to continue growing.
Nick Amicucci: Got it. That makes sense. And then just with regards to kind of the deliveries again, so 3,000 kind of to date so that would imply roughly like a rate of around 45 vehicles a day. It just seems like — it seems like a steep ramp to the end of the year to get to 300. I understand that opening multiple different areas where you’re able to pick them up. But wanted to kind of confirm to you guys had mentioned additional logistics partners. Are those in the process? Because I know kind of going back a couple of quarters, there was some kind of more growing pains with the logistics partners just being able to get enough vehicles on the ships and stuff like that. It seems like that’s probably not going to be an issue. But just wanted to see how long of a ramp period there is associated with that to try and get — I mean, is that able to be done in a month to get to that 300 vehicle number?
Geeta Gupta-Fisker: Yes, I can answer part of the question. So I think the 45 numbers are a little bit skewed because obviously, every day, we are increasing the number of deliveries. So if I have to look at the last couple of days, we were almost close to 100 deliveries. So I think the ramp is very, very steep as we move forward. In addition to that, you asked what are some challenges. So some of the challenges that I alluded in my script was, one of the challenges we have is the charging infrastructure when we are at the facilities. So the slower charging, we obviously want to deliver vehicles that are charged to 80% or above, and slow charging or L2 charging is obviously something that slows down. So one of the things we’ve done is have in certain parts like in California, we can get mobile fast charging or we can drive vehicles to a nearby fast charger enough.
That obviously is not scalable so what we are doing is we’re getting these static skids with fast charging at some of these facilities. In addition to that, getting our own real estate would also help significantly because we have our own people, we can work around the clock. In some of these locations we have, there could be unionized labor, where there are restrictions of how many hours a day one can work, we can work. So access to some of those facilities with limited time frames. And then finally, as I mentioned earlier, home deliveries where you need an enclosed truck is a little bit of a challenge just because of the reduced number of enclosed trucks availability. But increasing the number of logistic partners have helped us. We are also looking at some IT integrations with some bigger logistic partners to help moving forward.
I personally think that as we have a mix of pickups with home deliveries, this ratio will vastly improve. And I expect that more than 50% of our delivery should be a pickup or something under 60 miles that we deliver direct to the customer.
Henrik Fisker: Maybe just one last thing I can add. I think if you look at any car company in the world during the first 6 months of ramp, those vehicles always demand more care than once you’re up and running because you might be doing actual flashing software, you might be adjusting certain things, and that’s normal in any car ramp. So I would say at this point, we are now up at a point where the cars we get delivered, there’s no more adjusting. There’s no more flashing. It’s really over-the-air updates that we are doing, and that’s way easier. And then as Geeta mentioned, people coming in and picking up cars at our facility is totally different because we cannot have people coming on these other external facilities. It’s not allowed. So that’s going to make a huge change.
Operator: Your last question comes from the line of Chris Pierce of Needham. Your line is open.
