And then we’ll stop. Remember, our goal is not to build out a whole network of stable and sales it’s to build out two or three stable installs to better understand what it costs an operator transition a historically ICE lead to EV, the acquisition costs the total cost of operations and ownership and where the saves we can help justify the business case then take back to some of the customers, whether that’s independent contractors on the FedEx brown side or to other large commercial users of commercial trucks, people who deliver to grocery stores, people who deliver to goods and supplies to factories. Everybody is trying to figure out how to make this transition work, right? And quite honestly, the government’s got to help put in the EV infrastructure, they’re doing that.
Until we get the volume, the government’s got to provide incentives or also it doesn’t make a lot of logical sense, the EVs costs a lot more money until we get batteries in the volume that the costs come down significantly. We are in the very, very early stages of this transition. You can read all the press publications about the crazy how fast we’re going to go in EV. At the end of the day, you have to have the infrastructure in place and you have to have an economic model that works for both the suppliers, the manufacturers and the end-use customers. If you don’t, then it doesn’t work, right? We think we’re on a path forward to get that done.
Chris Souther: Got it. And maybe just my last one, timing around kind of positive gross margins and where we start to get the leverage. Is that something exiting this year we should expect, given kind of the ramp-up throughout the year? And then I’ll hop in the queue.
Rick Dauch: So, every truck we sell, we expect contribution on it from the very beginning. But as you said, total gross margin is about fixed cost coverage. So, I don’t think we’ll be there by the end of this year, but we will, I think, make significant progress towards positive gross margin as we ramp up production. Yes, Chris, I think the one thing I’d say to you is that if you take a look at the commercial EV space, there were a lot of projections over the last two or three years, and almost all of them came up short in two areas. One, it’s a hell a lot tougher you go from concept to production, and it cost a hell of a lot more to get there, okay? Just go back and look at all the old forecast of some of the other EV specs and stuff on that, are they coming up short, have they built their plants, et cetera.
We’re very fortunate here at Workhorse that we got a plant that’s been around for almost 20 years. It didn’t cost us as much to renovate and upgrade the factory as it would have to build a brand-new greenfield site, which was taken a couple of years. So, we were able to get that Unicity facility turned around and ready to go in less than six to nine months for about $20 million and we’ll put another $15 million or $20 million this year in terms of paint line, Dinos, in-line Dina testers and the AG EVs to move the vehicles around the plant, right?
Operator: Our next questions come from the line of Jeff Osborne with Cowen. Please proceed with your question.
Jeff Osborne: Good morning. Most of my questions have been answered, but a couple of quick ones. I was actually on CapEx which you were just touching on. What should we assume for ’23? I might have missed that in the prepared remarks.
Bob Ginnan: Yes, Jeff, this is Bob. We expect somewhere in the $15 million to $25 million range. So pretty consistent. And primarily Rick just outlined the three major projects, AGVs, Paint Booth and Dino are the bulk of that. A little bit of money on an ERP, but in that $15 million to $25 million range.
