Jeffery Osborne: So I get the strategy, but just in terms of the numbers, I think in the past there was like, x thousands of vehicles to be positive at both the gross margin and EBITDA level. That’s not a number you’re willing to update. Just to be clear.
Thomas Okray: Yes, it’s not a number. Two months in that I’m ready to give. Because again, to have that discussion with our supplier partners, which are such a big part of our P&L, it wouldn’t be prudent to throw out a number right now. So, let’s build that order book. Let’s have those conversations with the suppliers. Once we’ve built that order book. No better what the warranty experience is going to be, then we can give a more thoughtful number that we can commit to and achieve or be.
Jeffery Osborne: Got it. The last one I had for you, Steve, is just at the time of the spec, there was a discussion of Anheuser-Busch buying, I think, 800 trucks. Is that a customer that potentially may resurface, or is that ship sale?
Steve Girsky: So I don’t want to, Jeff, I don’t want to speak to any large customers. We’re demoing with a lot of large customers. Biagi hauls hands for Anheuser-Busch. So this is one of their, um, one of their 40 distributors, right? Anheuser-Busch, I don’t think, owns any trucks, but their distributors do. So that’s the way we’re working that one. Everything is on the table everywhere, so, but we don’t have specifics with any one customer. And frankly, even the ones we demo with make a signed NDA, so we don’t announce, they may announce they’re demoing with us, but we don’t announce we’re demoing, so.
Thomas Okray: But just for perspective, when we talk national accounts, we’ve said over 1,000 trucks. There’s approximately 250 of those fleets that have over 1,000 trucks, and some of them many, many more than 1,000. So it’s a meaningful number of customers to go after and delight.
Jeffery Osborne: Thanks, that’s all I have. Appreciate the response.
Thomas Okray: Thank you.
Operator: Our next question is from Scott Group with Wolfe Research. Please proceed.
Scott Group: Hey, thanks. Sorry about that earlier. So I just want to understand, last quarter you gave guidance on units and revenue and now just units. Is this a permanent sort of change in how you want to start guiding, or is it just we’re changing some strategy a little bit and we’ll get back to revenue guidance at some point?
Thomas Okray: Yes, I mean, we’ll, first of all, thanks for the question. I’m glad we could get you back in the queue. No, this is not a permanent shift. This is me coming in and been here two months, and myself and Steve, we want to give a number that we can really commit to. And I didn’t feel comfortable committing to a number at this point in time until we have worked through the flywheel, until we have worked through the national accounts, until we had discussions with our supplier partners. But definitely going forward, what you can see on the horizon is we will have an investor day where we put out short-term and long-term targets, and then we will measure ourselves to that quarter-after-quarter. We’re still in the innovation stage here.
We’re still in the starting stage here. We’ve been producing and selling trucks for two quarters now, and we’re still working out the kinks with the suppliers. I don’t want to repeat, but we’ve only had fuel cell production for a little while. But this is not a permanent change to be evasive on guidance. This is just, working through it so we can give a number that everybody can count on and we can be held accountable to.
Scott Group: That makes sense. And just in the near term, any color on just how to think about, like, price per unit in Q2?
Thomas Okray: Yes, at this point it depends, again, on the order book and what’s the mix between the bigger fleet customers and the smaller fleet customers and then the much smaller fleets. All of those will have a different pricing and a different economic profile. And again, I could throw out a number and it would probably be wrong. Please don’t take from these comments that we’re being irresponsible, though. If you look at Q1, again, 381,000 for the fuel cell ASP versus 351 in Q4. So we grew that. What is that, 9% [ph]? We’re still focusing on price. We’re still focusing on the economics of the deal. We’re just not going to walk away from a great deal with a great customer because, we’re being too stingy on price.
Scott Group: No, I get that. I just would have thought… Sorry, go ahead, Steve.
Steve Girsky: Even the big customers, they’re tough on price, but they also know they don’t want to put us out of business either. They want us to be there. So they’re managing on their side as well.
Scott Group: I didn’t realize that if you get some big order for national, it’s going to impact Q2 deliveries and price per unit in Q2 right away.
Thomas Okray: We don’t know. It’s hard to know when these things come in. As these things come in, when they come in, California HVIP is starting to pay more, so that’s going to churn more. Again, there’s a lot of moving pieces here. The good news is we’re selling more trucks. We’re validating the ecosystem and there’s more interest from lots of people.
Scott Group: And when you talk about national accounts, are you talking for higher companies, private fleets, do we have how much, how much of the order book now is with national.
Thomas Okray: I don’t. As an IMC is they have 2000 trucks in their fleet all over the country. Sometimes you land in one part of the country and it helps you in another part of the country. Hard to know what the order book, I don’t want to…
Steve Girsky: To be clear. I mean we’ve done 35 and 40, so the order book is not that big right now. I mean in [Indiscernible] order of magnitude, we’re talking, we’re talking hundreds of vehicles a month, not the numbers that we’re producing right now in the quarter.
Thomas Okray: And I’m just thinking about if you looked at the vouchers, I don’t think we’ve ever dissected any voucher customers by, I have 1000 trucks or I have less. I mean most of them are in California so there’s a bias towards smaller fleets in there, but there’s still some big customers in there.
Scott Group: Okay.
