Financial Data and Key Metrics Changes - The GAAP net loss for Q2 2021 was $31.2 million, compared to $33.9 million in Q2 2020 and $12.6 million in Q1 2021, primarily due to $20 million of non-cash stock-based compensation [32] - The non-GAAP net loss for Q2 2021 was $11.1 million, compared to $2.5 million in Q2 2020 and $8.5 million in Q1 2021 [33] - Cash and cash equivalents at the end of Q2 2021 were $30 million, down from $44.7 million at the end of 2020 [34] Business Line Data and Key Metrics Changes - The company is focusing on deepening industry penetration and expanding vehicle types powered by REE, with multiple strategic collaborations signed with OEMs and leaders in the automotive sector [17][18] - The company announced five different REEcorner architectures and opened a global Engineering Center in the UK for design, validation, and testing [19] Market Data and Key Metrics Changes - The U.S. government announced a target for electric vehicles to make up 50% of all vehicle sales by 2030, which aligns with the company's growth strategy [10] - The company is capitalizing on the growing acceptance of EVs as a sustainable solution, supported by government initiatives [10] Company Strategy and Development Direction - The company aims to be the standard for the automotive industry, similar to "Intel Inside," by providing modular EV platforms that can be used for various vehicle types [16] - The strategy includes completing partnerships with major corporations to enhance production readiness and market penetration [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in executing plans to achieve commercial production by late 2023, with a focus on reaching key milestones [36] - The company expects to continue expanding its secured vendor network and increasing headcount to support growth [35] Other Important Information - The company closed its merger with 10X Capital in July, receiving approximately $348 million in gross profit to fund accelerated development [34] - Total annual operating and capital expenditures are expected to increase by roughly 25% or $15 million to $16 million compared to previous expectations [35] Q&A Session Summary Question: Timeline for first purchase order and safety approvals - Management indicated that purchase orders are expected to arrive six months prior to production, targeting production towards 2023 [40] - Safety approvals depend on vehicle types, with some regulatory approvals achievable before full vehicle testing [42] Question: Cost outlook and hiring - The increase in cost expectations is due to higher demand and the decision to grow headcount and engineering capabilities, not inflation [45][47] Question: Milestones before commercial production - Key milestones include new agreement signings, non-public road testing, and public road testing, all leading to production [72] Question: Expected cash burn per quarter - The company has not disclosed quarterly cash burn but maintains the same annual projections for revenue and costs [74]
REE Automotive .(REE) - 2021 Q2 - Earnings Call Transcript