REE Automotive Ltd. (NASDAQ:REE) Q2 2023 Earnings Call Transcript

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Andres Sheppard: Okay. And maybe a different way of asking is, can you give us the sense of what kind of gross margins we might expect for next year or between 2024 and 2026? As we look at that new sales guidance that you’ve mentioned, just wondering when we could see positive gross margin? Is that something that you expect from the production of the 300 vehicles in 2024, or perhaps is that more likely in 2025?

Yaron Zaltsman: So we mentioned that we will get to breakeven [Indiscernible] costs by the end of next year when we have 300 vehicles. Going forward from that, when we’re having higher production, of course, we have a positive gross margin. And we also mentioned that we’ll go to positive EBITDA in year 2025. So therefore, the gross margin should reflect also all of the cost that we have in the company, and we’ll share more information about that next year.

Andres Sheppard: Got it. Okay. And maybe the last question is, can you just remind us where you stand with all of the integration centers? You’ve mentioned the U.K., but just remind us maybe the future plans and kind of where those stand?

Daniel Barel: Josh, you want to take this one?

Josh Tech: Yes. I got this. Yes. So basically, right now, as we said, we’re going to — our intention is also to use the manufacture of the corners. And then work with partners for platform and full vehicle integration. So — and of course, the corner is our core competency in around the corner. So that’s the value add. So as we launch the contract manufacturer in the U.S., that’s — we’ll do that second-half of next year, we have the option. So we’ll continue to build at the beginning. We’ll continue to build the corners in the U.K. for at least the beginning of Phase 2. And then as we ramp, we have the option — of course, we have already secured the Austin facility to start that up in any time when it makes sense. Obviously, we don’t want to overinvest until we need that part. So we’ll make sure that we’re not really dropping excessive amount of capital before it’s needed, okay? So we’ll basically keep that flexibility.

Andres Sheppard: Okay, thank you.

Operator: Thank you. I would now like to turn the conference back to Daniel Barel for closing remarks.

Daniel Barel: Thank you. So I would like to thank and acknowledge our teams around the world for their devotion and dedication to bring P7 line up to market. We’re getting closer every day, and I’m confident that we have what it takes to deliver the best electric trucks available on the market. So thank you, everybody, for taking the time today to listen to our call. Have a good day.

Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.

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