The Lion Electric Company (NYSE:LEV) Q4 2022 Earnings Call Transcript

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Marc Bedard: Yes. Hi Chris, in terms of the first part of your question, I’d say the majority of those purchase orders that were secured were from the 210, but we are seeing some successes in terms of converting the free agents. So that is going well. And I think more importantly, there’s significant dialogue around free agents. So these things take time. The deadline is April 28th and we will continue to make that, of course, a key priority for the company. And that’s the number one. What was the second part of the question again?

Nicolas Brunet: That was about the further .

Marc Bedard: There will be $1 billion we expect allocated next year. We expect that part of it will be via a reimbursement program like the one that’s in place today, but there could be a separate component as well. And we expect to hear more in the first half of this year in terms of timing of the procedure and then the form of essentially the attribution of that $1 billion.

Christopher Souther: Got it. Okay. That’s helpful. And maybe on the truck side, it sounds like the Romeo outcome is really going to dictate the timing for Class 8, but can you talk a little bit about demand for the other vehicles here, you had a big uptick in orders in the third quarter and then it moderated a bit in this past quarter, I’m curious if you’re seeing any momentum or customers that were waiting for kind of the IRA details around some of those subsidies? And what are you seeing kind of now that it is a new year and some of those IRA subsidies are starting to kick in there?

Marc Bedard: Yes. Chris, this is Marc. The IRA has gone out, for sure. I mean 40,000 unit, I mean, is good. And as I was mentioning earlier, I mean, the TCO, I mean, this is really the tool that all the operators are using to purchase. And right now, the TCO is favorable in most of the cases. So that’s great. I was talking about the Lion5 earlier. There’s a lot of momentum we feel around the Lion5. So obviously, we will be launching this one. This year, the same Lion5 will be used as the electric ambulance under the partnership that we have with Amers . So this is good. The Lion6, as we were talking earlier, I mean, there’s almost nothing else. Nobody else in the market right now. And this is a big market also. So we’re expecting some good results with the Lion6.

It’s a matter of timing. You mentioned the Lion8 tractor. This one is — we will be launching by the end of the year. You’re absolutely right, I mean this thing with Romeo, I mean, it could have an impact, though on the launching date. So that could delay the launch of that product. But that being said, though, we have orders for the Lion8 tractor right now, and there’s a lot of momentum also with the customers. So we’re trying to go as fast as possible, I mean, to launch this product. And we feel that adding like the full line of products of medium duty and heavy duty also makes a huge difference. Because for most of the operators, they are buying many of those models. So every time we speak to a customer, they can buy like a Lion6, a Lion8 tractor and also a Lion5.

So adding the full lineup is going to be something very specific to Lion that most of the other OEMs will not be providing.

Christopher Souther: Got it. Okay. Maybe just the last one. Would you be able to provide any update around either timing or volume do you think we need to hit for positive gross profit and positive EBITDA as you’re starting to scale up here?

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