REE Automotive Ltd. (NASDAQ:REE) Q3 2022 Earnings Call Transcript

Tyler DiMatteo: Hi, everyone. Good morning. Thanks for taking the question. Daniel, I wanted to follow up on the comment you just made about prioritizing deep the order book. Can you add some more color to how you are thinking about doing that in terms of like, are there certain contracts that require delivery before? Are those — or just any other color on how you think about prioritizing the different customer bases? I would appreciate it. Thank you.

Daniel Barel: Sure. And I think this is a very important question. We are interested in putting our vehicles on the road. And putting an EV on the road is a bit complicated because as you think about it, you need to make sure that you have the infrastructure in place that the customer has a fleet to be able to serve or prioritizing orders that nobody is going to be serious enough to take. Prioritizing only the most serious orders they want that we know the customer we are going to be putting on the road. The moment they get it, we work directly with them, of course of the infrastructure and everything needed in order to do that. And I think the second peak of it is, as we ramp up our production, each vehicle that we produce counts, because we ramp up.

Like everybody else, of course, then we want to make sure that they are our largest and most and the biggest customer that we have. Taking — and last but not least, keep in mind that it’s a very big commitment on the side of the customers to deploy test phase. Sometimes it’s a very — the highest levels of decisions taking place. And the reason for that is that it requires a lot of resources, not only financials from the customer when they’re adopting a new vehicle and a new fleet. And this is, all those three reasons are behind the fact that we — I just mentioned that we’re prioritizing the orders and the acceptance of them, and with that goal to deliver on time and on quality.

Tyler DiMatteo: So then my second one here, can you kind of give us an update surrounding where you’re seeing the interest from customers, it may be at a regional level in the U.S.? And then also the type of customer. Without getting in any specific numbers or details, just curious given the demand from the commercial side, in general is very strong, just because if you had to kind of weigh and kind of proportion now what would that look like in terms of say logistics or, I get a sense that fleet is obviously probably one of the most important, if not the most? So just any other color on that would be appreciated. Thank you.

Daniel Barel: So we’re working with the largest fleets and dealers in the world and in North America. Therefore, they have a global span, and they’re operating all across the U.S. I think it would be right to assume that the first deployment will be in the more easy, friendly states within the U.S., because of the incentive plans and because of their ability to deploy faster the infrastructures, New York, California, Texas and others. And on the second part of your question, I mean, we have a global supply chain, both in the U.S. and in Europe, and we can manufacture — again preliminary in the beginning in from the UK once we stabilize it and then moving into Austin that can serve the whole of the U.S. So there is not going to be a centralized supply chain, but actually a global display one that allows us to keep our margins according to what we want them to be.

Operator: We will now take the next question. It comes from the line of Colin Langan from Wells Fargo.