Hello, everyone, and thank you for joining us for our fireside chat with our CEO and cofounder, Daniel Barel. My name is Kim Mathers, and I'm the VP of Strategy at REE. Before we start, I'd like to remind you that this fireside chat may include forward-looking statements. Any statements describing beliefs, goals, plans, strategies, expectations, projections, forecasts, and assumptions are forward-looking statements. Please note that the company's actual results may be different from anticipated by such forward-looking statements for a variety of reasons, many of which are beyond the company's control. Please refer to the company's Form 20-F, filed on March 28th, 2023, with Securities and Exchange Commission, which identifies principal risks and uncertainties that could affect our business, prospects, and future results. The company assumes no obligation to publicly update any forward-looking statements except as required by law. It's really important for us to have a dialogue with you, our investors, and not only share with you our achievements and financial reporting every quarter, but to also answer your important questions. We've received dozens of questions on the Say Technologies platform, as well as our website and via email. So a big thank you for those. We've gone through to pull out the most popular questions you've asked, as well as some of the key themes, so we can get through as many as possible today. We wanna keep the conversation going, so please continue to ask, and we'll continue to answer. All right, Daniel, let's kick this off. Thanks, Kim, and hello to everybody from REE Design campus here in Herzliya, Israel. I'd like to start by thanking you all for the countless messages we received from our partners, customers, suppliers, investors, and people around the world over the recent horrible events in Israel. We cannot thank you enough for the support and well wishes. At this time, all of our REE employees are accounted for. The REE team is united and strong, and we are all committed to continue delivering no matter what and to do good. The AMA, Ask Me Anything, is a very important thing for me personally because it allows us to have a direct conversation with you, our investors, and I'm excited to see what you got for me today. Let's start with your first question. Now, our first topic is questions around our customers and order book. Can you please share the current status of REE's order book, and when can we expect to see revenue? Sure. So the current status of our order book is that we've recently announced that we've doubled the initial order book value since August, which was our last earnings call, and it's now reaching approximately $40 million, which is very good news. Now, it's worth mentioning, I think, that we only opened our order book less than a year ago for binding orders. And you know, some of our listeners here today and investors might ask themselves, why only less than a year ago? And the reason is, we all here believe that it is very important to bring to the market a ready product, especially when you're talking about work trucks, right? You have to put them to the work, and you need to make sure they're ready. So only less than a year ago, we reached to the point where we felt that it is the right time to bring that product to the market, and ever since, we've seen a steady and strong growth in our order book, and also a steady growth in our authorized dealer network that now covers the whole U.S. and parts of Canada. For revenues, for the revenue question, we aim to start delivering, you know, the first P7s, as we also said, this year. So we expect to record income, but that income will be recorded according to relevant accounting requirements. First delivery is still on track by the end of this year of first P7s. That's a good segue to our next question, which is: Why does REE choose to go through dealers and not directly to the end user? It's a fair question, and I think the reason that we chose to go through the dealership network model and create a dealership network is linked very tightly to our core philosophy of complement, not compete. And we've said it so many times in the past. We always would prefer to complement an offering instead of competing with others. Why? Because a lot of our partners, like our dealers, are very, very good in what they do, and it's the same for, you know, the supply chain, the componentry, the top hats, or the dealers. They are very, very good in what they do. So if we combine forces together, it allows us to bring our customers, the end customers, a much better product or service. Now, if you look at the North American or U.S. mid-size, mid-duty truck segment, Class 3-5, the vast majority, more than 70% of commercial vehicles in that segment, are actually sold through dealers. So it makes a lot of sense to complete and not compete. Now, since, you know, electrifying a fleet is not replacing apples for apples, and it's not easy to replace a nice vehicle with an EV, we need to very, very carefully choose the dealer partners that we bring into our network that have those capabilities. Now, having doing that and having the right partners, of course, benefits the customer significantly, but also it saves a lot of money for REE, that otherwise we would have to spend on huge sales teams and go-to-market penetrations, instead of concentrating on P7 line. Now, our dealers, just to put things in perspective, I don't have the formal numbers, right? But from conversation that we've held with our dealers, those conversations suggest that they've sold over 50,000 commercial vehicles last year, generating over $1 billion, right? So those 16 dealers that currently we have is the right approach and provide us with the right opportunity to scale as we move forward. How about our customers, Daniel? When will we share the names of the end customers that we're working with? Well, I'd really love nothing more than to share a customer's name here and now with you and with all of our investors and give you all the details. But we're bound by confidentiality and we can't share this at this point in time. And I know a lot of people are asking about that. We are excited, you know, to share who we're working with, and I promise we'll do it as soon as we can. You know, for example, on the last earnings call, we reported that we delivered a first prototype to one of our fleet customers, and we would have loved to share who that is, trust me. But there's a time and place for everything, I guess. What I can suggest is for our investors, and, you know, everybody listening to the call: have a look at our dealers. See who they are. See who they service. We shared all the names of our dealers and, and, you know, the, the, the local dealers and the three national fleet that we were. So the dealers are very much, as we said, linked to fleets, and I think you can look up who they work with. I can't say that this exact matches who we work with, but that at least gives some clarity. Now, you know, listening to a lot of people asking me who—when can we share those, those names, I can say maybe something more and say, you know, a lot of the fleets in the U.S. and North America and corporation have pledged significantly for carbon neutrality. And we believe that, you know, once they've—we've deployed the first P7 electric trucks into their fleet, and they've operated them within their fleet, and they've done what we believe they will do, which is a good job, they'll start ordering significant amounts. I mean, our dealer network, as we said, sold large numbers, and we believe we can see orders of hundreds or maybe thousands of vehicles annually. And I think what we would love to do, and we're very... I'm a very strong believer in that well done is much better than well said, and we want to show you, our investors, our vehicles in our customers' hands, instead of telling you about that, so hopefully soon. Can you share more about what you're hearing from customers? Of course. Just before I do that, I'll just note that, you know, we're a tech company in automotive world, so we do things a little bit differently. So we take the voice of the customer very, very, very seriously, and in some aspects, we actually work together with our customers as design partners to ensure that the product is exactly what they need—they're looking for, right? As to the feedback we're getting, I think I can say comfortably that we're receiving consistent endorsements, both from dealers and fleets, recognizing the advantages of the by-wire technology, right? Of the REEcorner, which is what's powering the P7. As in examples, we can note, you know, operational downtime, TCO, safety, and, of course, the low stepping height and the driver-focused cabin that we have. There's another attribute that a lot of people like, which is the corner swap, the ability to swap a REEcorner in less than an hour. It's very, very appealing both to fleets and dealers because it not only optimizes the downtime, which is super important, but it simplifies the spare part management, because we're talking about a one-part system as opposed to, you know, having many parts, and sometimes the truck is just, you know, on the lift for a few days because a bolt is missing, God forbid, right? So- Switching gears, we're now gonna answer some questions received around our financials. The first is: why did we decide to do the reverse stock split? Yeah, sure. I mean, we did it because we wanted to regain compliance with Nasdaq's $1 minimum bid price rule. So we basically had to do that in order to continue trading. Okay. Further to that, one of our most upvoted questions was: Are you worried that this will once again go under the $1 mark in the future and not meet compliance? On a technical level, I mean, to regain compliance with the, Nasdaq requirement, for the $1 minimum bid price, we have to, you know, trade for at least 10 consecutive business days, before November sixth, in order to, to comply, and, and we expect Nasdaq to confirm our compliance in the coming days. That's on the technical level. But in addition to that, I'd, I'd say, you know, the way I see this is there's been a lot of turbulences in the market, especially, you know, in the EV segment, and, and market condition are not ideal, to say the least. And, with all that, I think as a company, what, what we need to do, what we must do, is to remain focused, to remain disciplined, to keep our heads down and concentrate on executing our business plan. As we've been doing. Now, regardless of the market conditions and the war in Israel or COVID, at the end of the day, REE, everybody at REE, we are completely committed to continue delivering, no matter what. Okay. Thank you, Daniel. How does REE rebuild credibility with investors after these past two years? Is there anything that you've learned with respect to shareholder communication? The short answer is yes. So, you know, we're committed to transparency and open communication, and we aim to share as much as we possibly can, you know, on orders, operational goals, capital needs. And I think over the past two years, we all learned the importance of keeping our shareholder informed, even during, for example, challenging market conditions. And we also understand that our current valuation has been influenced by those challenging market conditions. Going forward, I think the way I see it is, once we start putting the P7 in customers' hands on the road, I believe that the stock price will eventually, you know, reflect the competitive technological advantages we represent. We also, I think, learned that effective shareholder communication is not, it's not just about conveying information, right? It's about engaging with our investors and ensuring that they understand our vision and our progress. And I think we could definitely communicate it, you know, communicate more regularly with our investors, particularly around, you know, the growing retail investor base that we're seeing now. And I think also, you know, this AMA is just a start to how we do better on communication with our investors. Sticking with the same theme of financials, Daniel, when do you expect to make a profit? Maybe I'll repeat what I just said, you know, REE being a tech company in an automotive world, and it makes us very different than quite a few other players on the market. What we've done here is that we've built REE from inception to be profitable in low volumes. And this is really unique to REE, and we look literally from the technology side to the production side, and throughout that journey of how to become profitable in low volumes. And I think this is really important. We believe that, you know, the technology that we have, the by-wire, X-by-wire requirements, and our efficient CapEx-light assembly strategy, is the right approach to address how you become profitable in low volumes. We said it before, right? I think in the last two earnings calls. We expect to reach Bill of Material break even, or BOM break even, by the end of the fourth quarter of next year, 2024, on low hundreds of unit volumes. Low hundreds, right? And that means that... In other words, we don't expect to be losing money on each unit from the first batch of scale production. This is something that I'm personally, and all leadership, and I think everybody at REE is really, really proud of, because we've seen what can be the effect of, you know, digging your own grave by losing money on the first batches, and we're not gonna do that, completely. Now, as we continue to scale, right? We expect to reach, or to reach, EBITDA break even in the fourth quarter of 2025, so a year after, which reflecting low thousands of unit volumes, right? Now, keep in mind that it's more or less the same daily production rate, so we don't expect to scale the required additional CapEx for that. So the few hundreds in 2024 and the low thousands in 2025 is roughly the same daily production rate. So we're remaining operationally focused, but we will... It will allow us to reach EBITDA break even by the end of 2025. Now, honestly, I mean, being EBITDA profitable in the low thousands of vehicles a year after SOP, I think it's an aspirational goal, but I think it's... And the goal that our disciplined approach and the two-phase production approach that we shared can achieve. So maybe, maybe we'll talk a little bit about the two-step, two-phase approach that we already shared, but I think it's good to spend just a minute on that because it's important. So phase I, we expect it to extend through 2024, where we intend to manufacture and deliver up to 300 vehicles. Now, this is deliberate, and it's important to emphasize that this is deliberate. It's deliberate because it would help us to ensure that we reach Bill of Material break even on the first scale batch in the fourth quarter of 2024. And we plan for the production tooling to come online. What does it mean? It means that we have to wait a certain amount of time towards second half of next year, until that production tooling comes online and is ready to produce through. And we'll use that tooling in order to reach the bill of material breakeven from the first batch. That will, in that production capacity, we will be able to deliver to manufacture and deliver up to 300 vehicles, right? And, as I said earlier in this chat, we build to order. Now, the REEcorners themselves will be built in our Olive Tree campus in the U.K., where the full vehicle assembly done by a contract manufacturer in the U.S. Now, in phase II, as I said, we intend to continue with the same production capacity. That should yield low thousands of P7 trucks over the full year, and that, we believe, would allow us to reach breakeven EBITDA by the end of 2025. So we'll be in. I believe in very good position by the end of 2025. And, you know, again, I can't stress enough that I believe that the delivering a ready product is more important than delivering a first product. So we wanna scale up responsibly and ensure that we create a stable and reliable production process before... Basically, we wanna make sure that we walk before we run. Okay, Daniel, going a little deeper on volumes, can you talk about your forecast for sales moving forward? And also, can you share what the P7-C sale price is? Sure. Let's start with the easy bit. The U.S. Class 3-5 truck market segment is estimated to be north to 200,000 trucks per year. So based on the demand we're seeing for our vehicles and our go-to-market strategy, we're targeting—and we said that before, right? But we're targeting $1 billion in cumulative revenue between 2024 and 2026. Now, that $1 billion revenue company can be achieved by reaching a low single-digit market share, and this is what we're targeting. And this is what is very unique and very attractive in this specific market, that you can reach a $1 billion revenue company through a low single digits market share. Now, for the price, for the unit price, I mean, you know, we haven't shared our MSRP, but I can say that we're in line with commercial EV segments. But it's worth noting that in the commercial EV segment, as opposed to passenger vehicles, acquisition price is not the most important factor, right? Because let's say you can get a vehicle for 1/3 the price, but it breaks down five times more than average. Is it a good deal or not, right? So there's many factors to calculate in, and I think that at the end of the day, the P7 has a much better TCO, total cost of ownership, and unit economics than ICE, and therefore a better alternative for fleets in the long term. There is also significant federal and state incentives for Class 3, 4, and 5 in the U.S. Now, according to location, they may vary between $40,000 up to $140,000 per trucks in certain states, right? So with all of that together, I think that, Dan, the quick answer to your question, yes, we're targeting $1 billion in cumulative revenue between 2024 and 2026. Changing topics and talking about technology. We received a number of questions, a number of interesting questions about future applications for our technology and our IP. Does REE have any plans to move into providing platforms for personal vehicles or otherwise providing Powered by REE technology in any other way? Well, the short answer is not at this time. Now, the REE technology, the by-wire, the REEcorners, they've been developed for very large and wide, you know, aspect of capabilities and variations. So you can assume that the first REEcorners that we're gonna launch now are the first of their kind, and there is more to come and then more developments, right under the hood that we're not sharing at this point. Technology-wise, yes, it's relevant from Class 1 all the way up to Class 8. But I'm not sure that the markets are ready for electrification in all of them, or the margins are ready at this point. I think, you know, currently, we're seeing very strong demand, like I answered earlier, partly because of how the market's structured, the incentive, regulatory support, charging infrastructure, et cetera, in the mid-size trucks, three to five, and this is, I think, where we wanna concentrate. I think that for us, we've been showing it, you know, for the past 10 years and two years that we've been public, we are very, very disciplined, and we're gonna remain focused on medium-duty commercial market. I think the main three reasons for that, if we, you know, keep it short, would be, there's a potential for much better unit economics, lower competition, and reduced capital requirements, right? But at one point, sometime in the future, we will definitely wanna look at other aspects, either on market segments or, for example, data as a service and other subscription services. Daniel, a specific question about REE technology application. Does the REE technology fit into the future development of tech companies and suppliers like NVIDIA, Schaeffler, or Amazon? Well, the by-wire technology, the X-by-wire, was designed with a clean slate approach, right? So as a result, we have tremendous flexibility to control and accommodate multi-platforms and partners. And at the end of the day, I'll maybe repeat what I, you know, started with this conversation: we complement, we don't compete. So, you know, the quick answer is yes. There is interest with quite a few players in the market. Each player has potentially different reasons, right? Some would look at maturity of our technology and the ability to put by-wire technology on the U.S. market roads. As we've shared on the recent milestones on homologation, reaching feasibility of certifying FMVSS certification of our by-wire technology, EPA, and others. Some would look at the advantages of the by-wire from the product side, and we touched on that earlier about what makes our technology interesting and relevant for fleets. Some would look at, you know, our network and relationship with large dealers and fleets, and some would look at the by-wire as a segue to autonomy, right? At the end of the day, if you wanna run autonomy, you have to be by-wire, and naturally, our functional safety and redundancies, the inherited redundancy within the system are very strong. So yes, we are seeing interest. Switching topics now away from technology. You made a reference at the start of this session regarding the current situation in Israel. Yeah. Has the current conflict in the Middle East affected REE? Well, of course, I mean, it has. How could it not, right? Listen, I don't think that I wanna start a political discussion on the platform. So I'll just say that first and foremost, I can update that all of our employees are safe and accounted for. Nonetheless, it seems that at least in our Zion campus here in Israel, you know, virtually everybody have been either directly affected by this horrible attacks or know somebody that has been affected by them. And we're doing everything we can to support those in need in very various ways. For example, last week, employees and their children used the cafeteria here to make baked goods and write letters to our families evacuated from their homes. All right? Nonetheless, I wanna say that the REE team around the world is united and resilient, and our global team around the world are working around the clock. You know, because we deliver no matter what. And for example, here at REE, we allow the employees to return to the office with their children, as not all schools are open. But at the end of the day, the majority of the REE team is outside of Israel. So, we currently believe that we will reach our target to deliver first vehicles to customers by the end of this year. On a personal level, I'm fully committed to continue delivering no matter what. Okay, Daniel. So it's about time for us to wrap today's session, but before we do, I wanted to ask a question around REE's activity this past year. There's been quite a lot of movement from 2022 to now, so this is a good opportunity for you to maybe summarize what's been happening for our audience. Sure. I mean, you know, in the past year, we achieved significant milestones and made substantial progress. In general, I'd say that we've been disciplined and steady in executing our plan throughout the year. I think our foremost achievement is a substantial achievement on our product maturity, transitioning from B samples early in the year to production readiness today. We established and validated our U.K. integration center, production facility, and have worked diligently to secure our supply chain. We made strong progress towards FMVSS and U.S. certification. We scaled up our business development team, and you know, that contributed to an impressive $40 million of initial order book value, which was doubled since August. By the end of the year, I think, we'd look back at 2023 and see it as the biggest year for REE so far. But I'll tell you something, I mean, one, it has always been our plan, and we've been saying it year after year for the past 10 years, so. Awesome! Thank you, Daniel. Most of all, thanks to everyone for joining us today. This webcast is gonna remain available on our investor website. Daniel, any final thoughts? Anything that maybe you can share with our investors with what's next for REE, that they should be excited about? Yeah, maybe three things. Immediate milestones for this year, very simple: completion of U.S. certification and delivering first customer deliveries. Done. For 2024, I think we wanna be scaling up production, putting the production tooling in place and delivering up to 300 P7, and of course, growing the authorized dealer network. But looking beyond 2024, I think we wanna start seeing entire fleets powered by REE vehicles on the road. And we're working very hard, and I'm hoping that in, you know, around 2025, we'll see the fruits of it is, you know, kicking off our data as a service insights that optimize not only the vehicle performance, but actually define how trucks are being brought to the market based on all the data we collect. Okay. Thank you, Daniel. Thanks again to everyone for joining us today. Enjoy the rest of your day.