Colin Langan: Okay. And then just in general, maybe you could just remind us how should we think about the multiyear outlook of sort of volume growth you’re expecting? So you talk about breakeven, but that’s in the low hundreds, so hundreds, and then — and we kind of progress to the low thousands over the next few years?
Yaron Zaltsman: So I think we need to divide it to the breakeven on the gross margin and then positive EBITDA in general. So in order to have a breakeven on the gross margin or on the bond level, we need the low hundreds of vehicles. This is the way that we have planned based on our CapEx slide model. In order to be in a positive EBITDA, which means, in general, a positive cash flow as a company, we’ll need to gain low thousands of vehicles in order to be on that phase.
Colin Langan: And when you’re thinking low thousands will be a couple of years out or?
Yaron Zaltsman: So I think our plan, as we said to the market, that we plan to be in the low hundreds vehicle somewhere in the year 2025, which means we are aiming to be in a breakeven EBITDA in the last quarter of year 2025.
Operator: We will now take the next question, from the line of Jeff Osborne from TD Cowen.
Jeff Osborne: I was wondering if you could just be more specific on the FMVSS and CARB timing. Is that something you would expect in the next month or 2? And then I’m just trying to understand, once that’s achieved, how quickly we should anticipate a final nomination of a contract manufacturer to be named? And then once that is named, how quickly they could ramp up?
Daniel Barel: Yes. And these are actually 2 great questions because they also came quite high with our retail question that we received. So good opportunity to answer that as well. So to your first question on — I’ll start and probably Josh can step in. But we will be — we’re planning to deliver the first pilot vehicles, demo vehicles to customers, or ship them actually this year. That means we intend to claim cert this year, as in 2023, before we ship, right? Because you can’t ship them without. So that’s how quickly we’re talking about. And we’re in the very last stages of doing that. And that’s on the heels of the previously announced x-by-wire feasibility, FMVSS feasibility that was a very big milestone that we had in I think last quarter.
So that’s on your first question. On the second one, I think we want to be nominating the CM early next year because we want to start ramping up, as we said, towards the end of the year when the production tooling comes online. But Josh, do you want to shed some more color on that maybe?
Josh Tech: Yes. We’re in the — so on the CM again, we’re in the final stages of negotiations with very capable partners to assemble the P7 in the U.S. Again, keep in mind, we’re on a CapEx-light strategy, both internally and with the CM. So to get to 4 to 6 trucks a day, it’s very light investment. It will still be heavily manual assembly with the technical tooling for traceability, quality and things like that. So we believe that, as long as we’re nominating by Q1, we can easily get up to that plan at a CM. And we’ll be announcing that ASAP and to everybody.
Jeff Osborne: And then the $20 million of expenditures needed, is any of that for the CM? Or is that once the CM’s name, that tooling is put in place that I assume any CapEx was on their dime in exchange for commitment? I’m just trying to understand sort of the timing of when that $20 million is needed, similar to Colin’s question.
Yaron Zaltsman: It’s Yaron here again. So the funding of $20 million is mainly for the CapEx investment in the tooling. And in general, we have enough resources to start to make all investment without trading the funding, right? We have $100 million as we just reported. The general issue for us is to raise the additional funding not because we don’t have money for the tooling, just because we want to pay also the bond cost upfront and to be always on the safe side and not to get any risk at all when we are starting the mass production. So in general, we would like to do it as fast as we can, but it’s always depending on the situation in the market. And it’s not that we have any issue that we need to do tomorrow morning. We’ll do it over time based on the market condition.
Jeff Osborne: My last question is just as Carlton on the Board and Tali and the team are out speaking to fleets, what readiness do they have on charging? You’re hearing stories of 12, 18-month delays and put again charging infrastructure. So it’s great that you have all the dealers. But as the dealers look to sell directly to fleets or you’re approaching fleets direct as well, are they already going through the process of putting in charging requests with their local utilities given the interconnection delays? Or is that a potential roadblock that might stem growth in the second half of the year?
Daniel Barel: Yes, great question. And the answer is yes. As I said, we’re building to order, which means that all of our very much expected trucks are being awaited for, right? And we make sure that the — both the dealers and their customers are fully prepared to receive them. It makes no sense for anybody, for any truck, to be sit idle without the ability to charge. So we are in very close relationship and contact with our dealers and their customers through the dealers, and the fleet customers through the dealers, in order to understand what is their level of readiness. Some have capabilities in-house. Some use our capabilities to connect them to our partners in charging, which we also said publicly a while ago, and we’re helping them get the right charges in place. But we’re definitely prioritizing predominantly the — those who are ready to receive EVs.
Operator: We will now take the next question from the line of Andres Sheppard from Cantor Fitzgerald.
Andres Sheppard: Congrats on the quarter, and again, I echo everyone’s best wishes. Just maybe quickly, you mentioned in here, you have — you were chosen for a multiyear program with an aerospace company. Just wondering if you might be able to give us a few more details there as to what it entails and how you see that one ramping up.
Daniel Barel: Of course. So we can’t provide any more details than what we should, and I am looking forward to sharing more soon. I can say that we have seen — I can say it’s an autonomous program, and we’ve seen an uptake in autonomous program that we’re looking into recently. I think that being the, I would say, to our best knowledge, the most mature by-wire commercial player out there gives us the ability to support autonomy very well through our by-wire system. And through those — a few tests that we’ve run recently with several parties, I think the feedback is that — they like what they see. The testing is successful. The implementation of by-wire and AD is successful. The integration is rather straightforward, which is important. And I think that speaks volumes by itself, and we’ll share definitely more when we can. We’re very excited by that.
