Chris Souther: That’s great. And maybe just last one, you talked about being prepared to scale the business for a profitable growth 2024. Are we at a point here, you think where you have a sense as to kind of what that break-even revenue level would look like and timing around that. Just any kind of clarity you can provide at this stage would be I think helpful for folks.
Rick Dauch: Sure. Well, first of all, we’re actually just kind of getting into the budgeting process so we don’t really have answers there just yet. As I said, on I think a previous call, our positive gross margin is around 300 trucks a quarter, 100 trucks a month. We’ve not gotten into full cash flow, but you can probably do some math from there. But we think 300 is a magical number for us to get to step one here, and that’s positive gross margin.
Chris Souther: Thanks a lot. I’ll hop in the queue.
Operator: Our next question is from Craig Irwin with ROTH MKM. Please proceed.
Craig Irwin: Good morning, and thanks for taking my questions. So this past year as you were planning for sort of a higher revenue runway, there was a lot of work done developing customers and supporting those customers in procurement of HVIP vouchers, some of these vouchers out of New York, New Jersey, Massachusetts. It kind of means like some of the heavy lift for growth over the next year has probably been addressed. Can you maybe talk to us how you feel about the pipeline right now as far as deliveries once production is there and these trucks are fully certified to be handed over to customers that have been working to receive them? And is there any detail that you can share with us on the vouchers or how you feel about the eligibility of vouchers as these final certifications come through?
Rick Dauch: Yes, let me — our priorities are — we did all the truck, the brand new truck in less than 22 months. So we’re still working through stabilizing suppliers, stabilizing our own assembly processes and launching the paint plan. All right. So we have some work to do still to get towards the run rates and start picking up the pace. I’d almost say, Craig, we’re priming the pump right now. That’s internal, right? And we think we have that under control pretty well. When it comes to pipeline, we’re seeing various feedback from the marketplace. Obviously, the CARB mandates for clean fleets takes effect January 1st, 2024 in California. And we’re seeing a flurry of RFP activity out in California, primarily through government-funded organizations.
So you’re talking the state level, the city level, the county level of the municipalities, right? So that’s an opportunity for us. That’s why it was so important for us to get these HVIP credits and vouchers out in California. Okay. I’ll give you — we did two demos with fleets. One fleet is talking about buying 40 to 50 EVs, and one is talking about 30 or 40 EVs, but only if the CARB mandate stays in place on January 1st. You tell me, I don’t know. There’s a legal appeal against the California mandate by the California Trucking Association that should be heard in the next 30 or 60 days. My experience growing up in the auto industry for almost 50 years now, I’ve seen CARB loose battles, but I’ve never seen CARB loose the long war. Okay. So I think there’s a move going forward.
We’ve talked to some of the biggest fleet operators in California. You name it. FedEx, UPS, Rider, Penske, others, Cintas. And guess what? They’re all trying to figure out how fast they need to move to EV, and at what pace, right? Similar stories over in New York City. I think we’re seeing strong interest in New York City, New Jersey area, the metro New York City area, I’ll call it. That’s where we’re doing our reefer demos. We have a reefer out there. We worked with [Arctic Chill] (ph) to put a reefer on the back of the W4CC. It’s out running its route right now. That route is 20 to 30 miles only. But it makes over 100 stops a day at each restaurant as it delivers food, dairy products, et cetera. So we think that’s an opportunity. One of the customers that I inherited when we got here, which we ended up buying the trucks back right away, because all five trucks failed, has told us they are 100% committed to go to EVs in 2024, 2025, 2026.
They want Class 4 trucks that can carry 5,000 pounds. That’s exactly what the W750 and the W4CC can do. And so we have those trucks out there being tested, and I’m confident that we’ll finish those demos like every other demo successfully, and we hope to win those orders. But I can’t tell you if that’s going to be a 100 truck order or 10 trucks a quarter. That’s kind of the wild card right now here as we fight our way into this transition. Does that help?
