Q3 2020 NIO Inc Earnings Call
[music].
Today's conference call is being recorded.
And I will now turn the call over to your host Mr. Li Chen The report and.
Director of Investor Relations and of the company. Please go ahead of me.
Thank you.
Good morning, and other.
Well from the meal the quarter can you give me a herd and public the call the Companys financial and the old busy the wall healthy and the press release videos a day.
And the hope that other companies I on website.
On todays call, we kind of use the women and the founder chairman of the board and she's got the offices.
The Russell two.
The financial Officer.
The old segment, and the big wait a VP of kept the markets and the Investor Relations.
Before we continue to be positive EBIT must be about the basic discussion will contain forward looking statements made on the the big copper lead list of.
Yes, probably true.
The litigation the school of making the on site.
Forward looking statements involve inherent risk and uncertainty.
As Josh the Companys actual results may be materially different from the movie stars today.
Further information regarding the risks and uncertainties include it in sort of filings of the company [noise] Louis.
The security and cash Commission.
The company does not assume any obligation to update and forward looking statements.
Of the required under applicable law. Please also note dot net earnings press release and this conference call include the Carson of on all day to the GAAP financial information as well as on all the good and non-GAAP financial measures.
Please refer to the news press release, which contains a the company or anything of the on all the two month GAAP measures to comparable GAAP measures.
With that I'll now turn the call over the throughout the old news. The we've got the we've got a school has the.
No there's on guidance it really depends on a way line are the other union you from people, who the few Paul you a half the [noise].
Hello, everyone. Thank you for joining me on the 20 twins and Q3 and cool.
On the offering and you can get the way that the Moon fell for the you on the and so on and do a GAAP, yes, Bob Yes, the milk and you could do koby pins on the balance is for the and stuff.
I'd be bids on by moving the Bobby.
On the money, yes, yes, Gulf what else adult and pivoting the true yeah, that's a talk about yet so simple.
And the third quarter of 20 point Neil.
And you feel we heard talk a thousand to 206, yes and yes.
And the six and interest pick representing a strong gross of 100, the 51% to 3% year over a year and 18.1 per cent quarter over quarter in October 20 price.
We delivered 5055 of vehicles, a keeping an eye on Mako and delivering record years, the though the interest from somebody goes on deals.
We're getting the likes of the list.
So buttons and yet the father to work with a lot of their needs on all of them getting the Hercules was on from countries. All of them is the way you free do you shouldn't read on the crime cause the delta.
On the phone from a goal and the without the book will be who as you build out and for the whole thing to happen. So did the poll five of the auditing and from voice and move on to put the union two of them were lifecycle products and a good doing simple two of them pardon the Eaton.
Yes, the strength has been the fact, the selling electric and see where the.
The trainer for 13 consecutive month, yes, eight has reached the number one and it sounds like you're in the premium erect CUK and CRB segment, the price above 400000 on being in China over a third product sales six has a started that the lever is the in September.
We have a games and the maintained a great word of mouth reputation full of a product quality and the service.
And the continued free received a positive feedback from one of the users.
And the Twentytwenty Tri net new and if your vehicle experience index relief the by JD power in September and Neil has once again ranked highest in any of the new vehicle quality among all brands.
There's a couple of years of his who will Miss having looked a little good book and board members and cool reopens and didn't do that sort of hobbies and eating so do well meals and and so put on a stock all you want moves on the site.
Right. So you buy the fusin, though.
After the launch of the battery as a service but the.
He was a part of and the services have been increasing the accepted by most of the was it the new order intake in October broke the historic record and exceeded our expectations and the fourth quarter were confident that the deliveries will further gross two between 16500.
And 17 out of your mix.
And most of you from here from the people, who don't forgotten the buttons on football we've got a person and showed on Sunday the sums and so.
I would all kind of a would've cycled from from what we've all free saw the says you guys on when the Sun's people that from total of clinical multi due from GAAP out of that and the food for the and hope and the study and fuel total woman who attended.
In terms of a gross profit supported by the steadily growing quarterly the reverse increase of the higher margin products and all of a product mix as low as a continuous improvement on material cost and the manufacturing efficiencies of our gross margin in the third quarter has continued to the upward trend.
And with the vehicle margin and overall gross margin, reaching a 14.5% and 12.9% respectively. The passing of a previous expectation when is the that you feel true from guys, who drink and trip on evolving.
And the from people the increase and the book so that sort of sodium Seville, you on Monday, So I don't have and the Subodh in food <unk>.
I don't buttons and keep you from diesel woman started from the kill the things on the jeans and your view on the Ocean Jim on the other your and trillions and could you speak and junior and bookings in the moves on the.
News assisting patients and it's getting more and more self evident and the operating loss has further and narrowed to nine.
946 million RMB and the third quarter of 2020, representing 18.4 percentage of did create myself for a month and a 60.7% a decrease year over year and your kitchen, we have achieved a positive cash flow from operating activities for.
The second the sequential quarter in Q3 were confident the to a keep a positive operating cash flow for the full she's a total year 2020.
Susan and I don't know the Sotos a.
And the Judy you get from and Boom book.
Next I would like to share with few from a key topics of of the company you and Bob on it on the Riocan cellular who's on the in house and Google and that's a good on pilots the blueprint got a lot way like we are kind of the two of them to the documents and.
We'll go out and what makes it a whole team Google It seems a little quicker turns on T., a bunch and gotten through the Golden do would assume you'd be comfortable the them and agree on the call.
We bought a Bluetooth Virgin Google and Jews without all the and probably a month of the woman Who's the goes a win.
So the goal job of drugs due to a can do to where the move from.
And the Youre. Please.
With respect to R&D, we believe that the navigate on pallets featured on and low key to use a five quota in October which has a further boost the to the competitiveness of the meal pallet of EUR eight has a system and the receipt of rave reviews of from users and the meet their food.
Food using the environmental data from that.
And with high definition and Matt and.
No he can't guide to the vehicle to follow the navigation and Brown.
Automatically drive from on ramp to offering and overtake a slower current.
A can engage not only on a high rate, but also urban expressway with optimizations of based on specific use cases in China.
Well and then I've talked to you about European and <unk> and Q2, the high bar and the two the cushions with on here through the sale of young from for the balance sheet.
And we've done the real data on divestment on Google the team here.
We are accelerating the development of a second generation and technology platform and T. Two point on the core of NTM 2.0 is industry, leading mass production autonomous driving the system, we will share more details of the and do 2.0, and you know day 2020.
We are doing to the well that's published by the against the ball you buy a new deals, which you can pay and golden fuel from the two pieces and then got me to a piece of the five and decided to achieve by the peace and will weigh latching on to consummate a few hamid from you.
And Paul I, even low we're not we're a ammonia and the entrance with the trend.
And then tinsel income volume would be a most of them to the he's done a slug of and cut the Dolby and Phil.
You bet against the Boulder true when the dollar tusa boot and the volume people didn't do from deep deep on year on the ended the quarter through the.
Good for women, who won't be a by not putting on Sunday, and which will yield co true core funds from the book some of you go through most of it.
On November six now launched a 100 kilowatt hour battery pack a feature is a highly integrated so to a pack architecture was 37% and make a density increase.
We could significantly extend the drive range of of a park on the line on it.
It has also adopted other at of assets acknowledges, including Thermo publication Prevention design, all climate thermal management and the five directionally clout the unmet coming.
To make the patterns see for a safer and a better.
The 100 megawatt hour battery pack, well, taking deliveries and December together with the launch of of the 100 kilowatt hour battery pack. We also provide the permanent upgrades and the flexible upgrades by month or by a year to users of of the 70 kilowatt hour battery pack as of today, we have the.
Successfully closed the the group for other innovative class model vehicles, better a separation battery subscription and charge book Swappable and Upgradable battery solutions.
And no bomb yet will deliver the aegion bother low temperature and only the impairment hundreds and value of a typical balance you see booties and Hanam Union and usually from Josh and trend going on can you from group maybe a few total quite high you have on Dupont and on the nuclear fuel.
A full production capacity over a long and supply chain production capacity has already reached a 5000 units per month in September. The teams are working and we can bring together with other partners to further outbreaks of a production capacity the hard it to the expenses the on.
A lot supply chain production capacity to 7500 units per month and generated 2021 to meet the growing Hubert the mountains. So the Gulf War on low volume related deal on struggled a bit as mentioned by which the to go with us and Jim Congrats and going back and build a little.
A little up on the on some details on the buy was and doing so well go through the the committee on the.
And our current Bob come from can be she and can call. The other findings on some of the media and from an impressive book.
In regards of the South and the service and network.
He'll has opened a 22 new houses and a 100, the 59 on spaces and 106 cities.
And 169, Howard fluctuations and 70 cities in China.
Moreover, we are developing the second generation power and swap station with a lower cost and a better experience.
And are planning to deploy it the second generation soft station in the first half of the 2021 well maybe on the sold on the put on quick on well I think will flow through to somebody that can book, where the governor ULA Wei line could you put on to the on billion Jetblue early on in the Us New EPS.
Absolutely essential you by the way could we do and book from language and what you might use about the from groups within the time people that the book in high sales within the two real estate, Inc. Would assumed and so did you book the woman the about a change in volume.
As of a user base of continues to expand the and new user community is becoming ever more vibrant and November marks the second anniversary of the user volunteer initiated.
As our current November 10, 2020, there are 3100 and the one is the volunteers and from 118 Cts sales.
Ticket the upon themselves to promote and the new and the contributed to the community and the showrooms auto show livestream impact on delivery centers and the Neo day, you of the trust and the support have always being the biggest the motivation on yield to do more and a bit better.
We like on the.
Oh, the having a theme here also we will let bill go through the some of the does include a group of a ponder on the lease up on each one of the two basic lcms foam and they have the does the from from the coupons on food million see the other two tons and tons of helped us from a way of ginger the hunting and CEO.
The fact is simple.
And see how the current.
On a trend from the use of yet likely will come into the.
On November 26 to 2020, Neil will in free is it six anniversary with each of the pool and the key assets.
We have achieved a milestone.
But we're still it's kind of with a rather short history in the face of a fierce competition and the intense challenges will work remain committed to making the size of investments into the product and the core technologies and the offering the best service and the holistic user experience.
To live up to the expectations of of a loyal user community considering on a boost the cindat given that we buy assets this occupancy of the disclosures.
Thank you for your support.
With that I will now turn the call over a to Steven the provided the financial details of the quarter. Steven. Please go ahead and.
If you read and other non all of our key financial results for saw a quarter of to the 20 and.
The mindful of the length of this call.
Entirely from those three first of all the outage was a press release, which is posted online for additional details.
Our total revenues from the solid total.
Four point posture of beyond the full 666.6 million just on the day.
The increase of 146.4% the overview and increase of 21.7% quarter over quarter.
Our total revenues on the rate of Taposh vehicle sales and other sales were.
The all of the sort of total.
A 0.27 beyond the whole sitcom the two April for me just on on accounting for 90, 494% of total revenues in this quarter on it.
Represent the increase of 146.1% of a year and.
An increase of 22.4% quarter over quarter the.
The increase in vehicle sales year over year loss per.
Promoted the to the increase in sales of vs six and eight.
On the sales the solid quarter were 259.2 moving on the low for the 8.2 moving of storms okay.
And the increase of 150.7% over the year.
The increase of you give them from 3% quarter over quarter.
The increase and other fields the of the year lots of new attributed to the increased revenues the.
Right from the home Chondroitin Stuart.
Its packaging and and the package subscribers.
And assets, we've sold which was in line with increased vehicle sales is solid quarter of to the country.
Cost of sales and saw the quarter while.
Three per month for bidding on the full 550 book through meeting the stones cookies and the increase of line Q1, 0.4% year over year and increase of the simple 10% quarter over quarter the.
Decreasing the cost of sales over the year must moving to them by the increase of the book for the third quarter of 2020.
Gross profit the sort of quarter of can be a 25.
585 age range RMB pool, and the 6.3 million based on us because of an increase of 800 simple for me.
From a gross loss of 281.6 million on due to sort of caught off to the 90 day a decrease of 282.7 million on the from the second quarter of current between.
The decrease in gross profit plus meaning the than like moving contributed gone through a critical skills and the increased vehicle margin.
Gross margin the third quarter of two the 20 watt top of mind per cent compared.
Compared with the.
Total of 1% of the same quarter of 2019 and.
8.4% of third quarter of two between.
The decrease of gross margin was mainly driven by the increase of this the margin the third quarter of two differently.
More specifically the.
On the margin in the third quarter of two the term too.
What a 45%.
Current with 36.8 percentage in the quarter of 2019 of nine.
Mine book.
What percentage of second quarter of two of the 20 the.
The decrease of the from margin plus meaning to them by the decrease in purchase price of sort of materials and lower unit manufacturing costs attributable profit increased production volume of yet to give a we saw the court of two between.
On expenses and solid quarter was 590.8 and the lumpy.
87, and getting the stones and presenting a decrease of 42.3% the all the year on a decrease of a 4% on a quarter.
The decrease on the expenses year over year gross profit attributable to harvest volume and the development costs the occurred.
The third quarter of 219 forties, the seeks and overview as eight launched in the fourth quarter of 2019 at the top of the overall cost for the efforts and improve operating efficiency is on the functions to the.
Fourth quarter operating margin.
And Jan expenses, the third quarter.
940 put through many on the book.
100 per April on milestones, representing a decrease of license to present the over a year a decrease of euro four per some quarter to quarter the.
The decrease has gen expenses you over the years.
The primary driven by the concrete over all the cost of the efforts and improved operating efficiencies the marketing and other supporting functions.
Loss from operations, the third quarter was 946 million on the.
100 to non book through many of stones, representing a decrease of 60.7% year over year on a decrease of 18.4% quarter over quarter.
Sure of is competition expenses and third quarter book.
Moving on from too many on the whole simple streaming just on us.
The isn't a decrease of 30.1 percentage of a year a decrease of 8.3% called the quarter the.
The decrease the share based compensation expenses, the obvious medium much from reduced net for crude front and driven by the decline in non burst of from coal use and.
Impact of part of the shore based competition expenses the.
The coupon.
Moving on the weekends networks on the a breach the expenses decreased gradually over the rest and pure revenue.
Net loss from the third quarter was 1.5.
On the RMB 154.2, moving the stone, which represents a decrease of 58.5 percentage year over year, and a decrease of the 1% quarter per quarter.
Net loss attributable to the meals ordinary shareholders. The start a quarter was 1.19 bidding on the old 100 from the finding the stones, representing a decrease of 53.5 percentage of a year and a decrease of 1.6% quarter over quarter.
Basic and diluted net loss per Mcf, the third quarter of both.
Gross.
There are a point, Mike eight on B coal 40 cents per EPS.
Excluding share based compensation expenses on the.
Accretion of redeemable non controlling interest to redemption value low.
Non-GAAP adjusted basic and diluted net loss per MBS look both.
There are from a two R&D of 12 cents per day as you saw a quarter.
Organic cash and cash equivalents the strip the cash and short pump the investment.
Was 22.2 billing on the all three book 3 billion just on US as of September the fees to the 20. This.
Additionally, the achieved positive cash flow from operating cash activities for the third.
And the crucial quarter.
And now for the August.
That's a bit of me shipped for the.
Fourth quarter of Twentytwenty, the topic expect deliveries to be between 16500 and so.
17000 of vehicles.
Because the increase of approximately 1.6% to 106.7% from the same quarter of 2019 and decrease of approximately 35.2% to the.
Sample of 3% from the third quarter of two different.
The pump. The also expect the total revenues of the fourth quarter two the Trinity two of between 6.26 to 6.4 for bidding on the.
And our country.
Line Congress, the 1.8 to 947.9 moving the stones.
This would represent increases of approximately 119.7% to 186% from the same quarter of 2019, a decrease of approximately the.
And 3% to 42% on the some of the cost of Twentytwenty the.
This outlook reflects the companys column and the preliminary view on the goods to the issues and the market conditions.
Which is subject to change.
Now this concludes our prepared remarks on.
I will now turn the call I'll go to the operator to prosecute our current a session.
Second the ladies and gentlemen, we will now begin the question and answer session and if you wish to ask a question. Please.
Please press star one on your telephone and recurring Inc.
And for the benefit of all the fence on todays call. Please limit yourself to two questions and if you have additional questions you can reenter the queue by pressing star one again.
The first question. We have is from the line of the initial from Morgan Stanley. Your line is now open.
Hi, Whalen, Stephen Jade and 10 holiday sales came from Morgan Stanley other congratulations on a strong result, and thanks for taking my questions on perhaps a question and developing a quicker and and mentoring first on the Shintech when T cell and plenty finish and Josh show, a changing and would actually is true balance.
I've seen a choice of Apple holiday and get your somewhat on each of the change on the.
Thank you and much of a coming in how tricky sequentially a teacher July sales.
The top total which is shown day thats a central of the shell mortgagee sounding Chen and go towards the tumor to each of the certification and quite essentially a show.
Okay and touches virtually no cure a pilot just share your quite on the boss battery a servicer. So the second question.
Most of US just help us and say how much of the take rate now you mentioned the scope.
Couple of towards the end of June should follow the ULE that should a change to the check at the holding to the.
Total she the Ci sort of titrate the rest is Belgium.
So my first question please.
We saw a Neil may cancel the operation of progress this year I know from Sixtym like of the launch of the Sussex boss and a bunch of kilowatt hour a battery pack, so look and to talk to you talked of on holiday. In addition to the fourth lot of launch and ongoing investments and the Tom's driving what else. How is the other key focuses for R&D and.
Last month, and if possible per day that and share any profit guidance on.
Regarding the overall R&D spending on a.
And just to touch Toady total 2020 on.
My second question is about the boss.
That's a as a service could you please share some on market feedbacks on the battery a service program and with the launch of the 100 kilowatt hour battery pack well, that's sort of expectation of the take rate of the service for a 20 told you won't have to be on.
Based on my two questions. Thank you.
Thank you a team.
A meeting and the Yemen Fokko.
No tenants on the wind and.
And Chris infusion sets of like on the Hodges and true then and due to the home and shoes from good occasional furniture financing, Tim the young and the given just the receivable balance from both the other from in the the consumer to come to that.
That concludes the metabolism.
And that is growing the same day, sometimes the go as the way the down and purchasing from instead the mark.
On five Fu by the you can sell a sort of.
No the and the tools on a new class.
So you can tell the school a woman sympathize the comes as a team that the the self.
So for US just from a dollar.
Okay stories on this in a higher the other.
Taking a billion by other bigger things on June no other than the yup.
The other thing is that from the young part of the operating but with the current built for the times and so that actually a share.
So the woman.
Some of them down a simple sharla announcing true properly cool momentum from good of and can.
We measured the balance of phase.
Please see the issue a mixture of women go sort of by Indian problem and easier to the tumor.
Thank you for a question regarding the R&D focus and for Nektar or of a recent focus just like I mentioned in my prepared remarks and.
And from 2.0 is that the folkerts instances of the core technology.
The core of the NT to point out is the industry, leading mass production autonomous driving systems of course, we also have other ongoing projects in terms of what the vehicle models. We have already successfully launched a three excuse me for the next or products and were going to low.
It's going to be a fifth and on the M 2.0 class on it.
Instead of where it's going to enter the sedan market.
And the same kind of a also developing other vehicle models. For example, the second the new product. The in the pipeline is also going to the 10. So weve got a launch onto the next day or two new product and we believe the we can complete over a product of portfolio the.
They are going to go through the bulk.
On the take rate women's home buyer from Bob with the about the reported on both on both a low.
Good day into kind of take rate of the beds within the from the number.
From a bowl.
Revenue from damaging to the on a woman the take a simple thing done within the bulk of the take rates of using the other LER and ventures.
Okay and do you see the has quite a few things on there.
Our balance we don't put us on the light down.
Well on that and the investment.
Alternative with the property.
The the.
EBITDA didn't benefit with a $30 billion and.
And this is on a shore the Douglas of the take rate review on the other thing on both on the controller to go positive non-GAAP number of can we think about the the good symbolically net down year to year. This without a hold true even a couple of once and and go from equal to the income.
London's the properly the engine for the freight and duty.
Other sort of healthy during the quarter so maybe the.
Number of figured some good as of the phone line up on the there's a whole and the more we also beyond the two during the two things going for the future because the institute on quite a.
If I do the on properly homeowner and youth and whether the go past the most on the broken down in the Leila what's on the considered within a per unit.
Yeah and within the past the did.
The can data from accounts, you like hub, but the invented this assumption.
In terms of after the fact of take rate after.
After we announced the pots and August we're very happy to see the increase with the take rate every week and.
And in November we can see that amongst all of those the new orders the taste of for class is around 35%, which is a factor and the better than of a previous expectation because of the model is a net two orders. So this will be reflected the other day that later in the other day.
Every day, we're very happy to see this it but the take rate and.
Momentum and the we believe the this is also going to the increasing the future that can help us to lower the initial purchase a price and any make of users concerns and regarding the batteries depredation and also provide a flexible upgrades services to the user the purpose of the past Inc to convert.
Gasoline current users to each of these.
After the launch of a 100 kilowatt hour a battery pack, we believe the the competitiveness of a class has been significantly enhanced and.
And as the of the users and can get much better on the standing about to the benefit of of parts and we believe it is a take rate of while increasing the future and the long run.
Perfect Claire Harvey Thank you rent and the congratulations again on the results. Thank you.
Thank you looking Inc.
Thank you.
And the next question. We have is from mainly from Bank of America. You May now proceed with your question.
Sure sure so weather and Steve a house results of losses on.
Some of the you know the when she has a GRC qualys I'm already of access on the rates on a decided she thought the g. the hall.
Okay.
Some of it is a cheap and.
Now a collision coverages and the salary of giving the.
The fund and there's always like on Chuck just on the good my either kind of sense.
On the bottom.
Moving why the portion of the change on a GP.
She also cheese and.
As of today, whether the them all the way to get a policy the since you sometimes.
Oh of non vehicle is the goes was the policy the whole. Meanwhile, the volume.
On the gross margin on the.
The g. too tight as the some of those and once you do sell the shot show.
After the should be.
Okay, and the suited to the teachers.
Guys, a commodity delays as you watch a tissue the eagle once you supply the model of.
So my first patients regarding the mark.
And just a extension of.
On the second quarter to quarter, yet gross margin interest.
But the point a quick.
Could you give a rough breakdown of how would you into a.
Of course gross margin and the Oh Gee, we also see and the actual contribution from the sales of book.
And the Crazy.
So we.
I think it will in the nation.
I'll take any or a loan the goes down the line. So thats the doing I mean, the spanning a.
The a vehicle margin increased a in Q3 compared the compared with Q2.
And a contributor as part of a two factors the first is a.
The average selling price increased by a 10000 RMB per vehicle.
A mainly because of the.
More yet a with higher price and so in Q3 and a second is a bomb caused a reduced by a 7000 RMB per vehicle.
Also a a which are contributed by the course of touch of battery pack and also in the EPS.
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The the revenue from a set of skills kredi points a.
We received a.
The [noise] rare.
Revenue in Q.
Q4 of which total amount of a.
A why Hendrix, a 20 million of RMB and we will recognize this sales of our the revenue in Q4. So in Q3, a will not included or the.
And in the financial result, yeah.
So on.
That's your question about the a the week over week on margin and regarding the service revenue a I think we are a continued and working on to improve the a.
Like a day service margin to reduce the the laws so a I.
I think of the trends will be will be will be posted in the future.
Okay definitely yes, some of your nice on upon which we are pleased the light on a woman Tony the go to positive.
Allow me about the right on the home and balances a volume of these on our income.
As the switching over to use all of whom.
And then coming down the line.
To the to quickly the two products to those other so you'll see a molly.
The houses are the game, we show you the from Dod probably kind of a can you share on the Dunkin' back to from a 200 a through the.
Ill leave it there.
On slide on about double the tissue guys impacts behind the scenes.
A lot speaking regarding the gross margin, whereas the other.
The other service and the cells, we believe the it will be further optimized as all of a user base continues to expand and this is going to be reflected with the the growing economics of the itself.
In the Q true and the Q3, the or change the as the Knott's Berry advertise the part that we are quite confident of this is going to have a continuous optimizations and in the future.
No the holding like the ones you see a play it's a peek into the guidance.
Okay. So it's not a.
Thank you of course, we achieved the hall and the to be surely shock of that.
So if you do this is a.
And also the SPP.
It would be and digital that color.
And and beach not so on average I take price if you average.
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On a different dumpsters and satellite digital a sps on a multi what your average from Georgia.
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The opt out of the issuance of the CEO the acquirer.
She's been a big rush out with the industry.
What was the juices utilize other diabetes and the ideals.
On the you've got a result, a sound bite, we see good force it and so the.
Based on what you see the the pace of growth.
Okay. The other two really since our each deal it seems and do the balance.
Just a question on LG so.
Yes, probably the submission.
Thank you and good cheese and can you give me a little bond holders of the.
Just of the goal of almost as of the the PV go back we see a simple young but on the whole a should it is a good interest with each of the goal is on the do it.
On the Internet the remediation go through the end of the degree.
The the JV, the as well the and John I don't want and volatility easily fit on and called not tell you. If you just do it yourself.
You by the.
Hi, me and I think and Eric Your line is on top.
And I'm sorry.
The participants.
Sorry, the participants the long, but that's getting a sense maybe suggest please press star one again, if you have further questions.
I'll move on to the next one we have a they do Wang of.
Early on.
Let the management to Alberta is a question for you and surety that part of it.
The net to ensure a sir please go ahead.
The.
Just to recap a little bit on the catching a basically the questions about the the average selling price and the in the fourth quarter and things of that the the average selling price the well increase compared with the the third quarter of by around the trough to a 13000 and so.
With the like to know whether the data driven by a they used a six or all of the 100 through a where a battery pack and the way I also would like to know for the battery packs and what is the the take rate ratio between the 100 kilowatt hour a battery pack and the 72 on our battery pack of networks and better operating sizes. The a woman the tick a little bit.
And then to go on and then do a muted a bit of social would a good read from them from 11 to.
And how to a formula and she partnership with the Sunbelt and then suddenly a down on our members to the this is the the two my opinion, a kind of on deals and the other from given that the total.
On the but from gross so you Chicago two simple you love the sort of of the Mancos shift very cool some girl of the women.
On Monday, the bringing the from is on the delays on one being a price demand. She bought the SP. The to go on to go through other means don't come on new channel Miki as a key hunton and waves with a truth on top of the six in a position to 2000 and book is simply sat down and can be a median imbalances and I kind of a.
The only by the piano on the Yumes digital has become the unpleasant sales grew on the.
From the that as the year, because the machine and Lisa price would you be the volume. It seems you guys on a monthly sunny season.
In terms of for the sales revenue and Keyence was like a to clarify that a bit and stuff like as Danny mentioned for the Q credit revenue. This is going to the assisted the revenue for the other sales and any other guidance and we don't like to.
Free considers the increase of the the average selling price as a part of the target we believe that the average selling price and the fourth quarter is going to be on the senior level and the third quarters. According to the orders we received a right now and we got the starter because the deliveries of for the.
Under the kilowatt hour a battery pack in the fourth quarter. So we believe that this is not going to happen and the impact on the gross margin in such a short time by the way I'm very confident the to continuously improve of a gross margin of three.
Throughout the fourth quarter.
[noise] operator with a move on to the next question.
Secondly, Sir the next question is from things on from Credit Suisse. Your line is a listen.
I see a company not not willing to have a gives you a claim already quite a issue coming on.
Really the on or something like on the shit, usually a mill.
And what.
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Thanks for the tissue.
Comment kind of standard, which is largely a bunch of commodity the only to share, but John why does it sometime back on trends you Milton we're showing a wake of made and dollar spending a chances of the optimal showing a bundle and not one.
On T. and kind of on the to the past Nucor and Dave If you want to speak of so many things from a cash from and I'm going on now.
Good day and that the the pinch the.
The money just thoughts on the upcoming new Tony.
The traditional anybody and I'm, saying commodities the kind of goes on a per mile.
Yes, you know just as the strength since you probably of something like a shoot commodity ma'am you may come down and much of the day.
On to hold your share on screen really pushing that the things of that essentially the you may when the you went on to.
The recent and maybe pushing the and I think a fund the almondmilk on that.
To make up the interest.
We saw the interest.
And so she social class a commodity that took a and b.
Still going on just going to depend on the is not what you see a shift a kind of going on there.
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In addition, a financially and.
John Desimone with dish and you look kind of quickly could you just talk and on a Sunday so yes, you'll.
Well from what do you think of interest to you and me give us on top of the shop, Entresto and could not a sylvia.
Just on one question on so much on the top line.
Hopefully to conduct the channel maybe can you be the class and keeping the from chemo built on a harsh and commodity on sponsorship of given to you.
Oh, how a funny censorship and.
And I just wanted to know what the margin a factor for.
Going forward.
Going forward, we see on a few factors points and put a bought a company.
And how much.
True all the battery and a summary, you move opera interest rates up the phone a.
From a battery and.
And it will affect us flow impact margin apart and.
The second part of your product because we've seen a big hit to price will be the season next to the lower pricing on maybe lower margin. So to share any plan for net you can pick on the Silvio you on Pico on because for example on maybe the names the night, we see on a pure actually running for a much bigger one and.
So if the what the upcoming ramp from even pick up for the us. Thank you.
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I will put on a deep into the effects of to the further explain the a.
Gross margin improvement. The first you mentioned is about the subsidy we further reduced the the subsidy to the and the users in Q3 with the launch of a robust model and the so [noise].
In interest rates, there's a database.
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Like two to two true due to the the subsidy reduction and the second the is the the the skills.
Economy, a other you can see a the production volume in Q3 is a tough thousands of.
Of course, and or a almost a 20 overcome the increase compared with Q2.
As we had a mentioned AWS is a.
Part of it and we were more a to improve our production capacity in the.
From timber to fives other units so the manufacturing cost a I think almost all of the seed a with the second quarter.
Yeah, and the above about the boss and also the of the hydro kilowatts impact a.
I I to it and to answer the question Okay.
The government the result on it over the phone does and the of come to light on from some of the lag on balance is none of the data.
I'll pick a home for you how quickly the studio guys on the crude the Oh, there's a true this without even from Lukas I sat on the them with a high degree of other inclusion of so to some of the into the equation you Cook and reseller easier on my real on book and that was it.
The other.
Pick a a mini and the.
Some of the about signal that high on the tandem you quote the the has reported say such a downtick a book we set them has all of it doesn't need a balance on a double and stuff.
I like a two at some points regarding the manufacturing cost and efficiency and the long run of course of a will further improve over the manufacturing efficiency and a concept and we believe and this is going to and reduce the gradually.
But so were going to stop and the reduction at a certain point of course, a where you can see more contribution in the quarter of compare where is the the second quarter, but the this is going to a diminishing in the future and well continue to work on the optimization of the manufacturing efficiency and a car.
Not a whole bunch of the adult a leg on a take a a you know a moves through a say a stupid about the current Lukas and go from the shelves will be the the tend to book on Bluetooth and do the approval to it and so we see a can you just on I saw on that has a police and and put them on a leader telephony the considers a lead on it.
And she brings a simple to use.
Have a didn't go and live and why.
Right and the them on any of the peninsula and into some of the of.
Oh I.
As you might lead to the assays and because of later on on a couple of income from commodity that's a play until late on the Dauerman, Please and put a multi.
For the battery as a service we will sell other cars to the user and the the battery to the battery as a company on the park model so in a.
And that the this is not going into a a factor of the vehicle gross margin, but ways of a battery upgrade the service. This is going to a provides a some good benefits to other revenue. So in the long run. This is not going to have a and then the second is kind of impact the on the vehicle gross margin Buddy.
Well give some incentives and two other revenue.
The dozens of people on into some basic a.
Hi, other so moving on to the three women book is on top line and said about the path to the deep enough on the because some of the on patients who founded the and some on the women's the goes on to some of the some of the cheap how does the the so the petition and should continue on them.
For the two credits and we actually included in other revenue. So other cells and we have a different of approaches compare range. The test not because that sets of I consider the revenue on the credit the end of the.
But the way the include the that in the other revenue.
Claims of the few times from the bigger boots you a.
Well, we're a leader to the sales from the line from the a suit on similar to your boss.
On the woman, who did a top line down on the on Minnesota, and yet pardon me the.
Turning back and a bigger I feel that the the suit and he has done on the comes from the as to the.
The paid as a on the the financing from a day.
The adult particularly year because of the.
Oh, no from inside a bank that into the relative to the shipments of the momentum from the Latino how does the balance of the the shipments income the.
The net.
Yeah, it's a balance there.
On the the biggest sell the lessors have a.
So on a before moving here.
For the new product a planning we have a very kind of a sense as a part of the and the market entry of filing. This is going to be carried out the threats like that for example, restarting of with the other flagship a a TV, yes, a in the amid a lot the segments.
And we entered the the mid size and see the segment of with the yes. The six and then that could pay a few the ways. The Easter six this is a very systematic approach for the match the stat, but were going to enter the sedan market.
And selecting different and market segments went into the balance is the size of the the Sacramento and the that's all in the objectives.
At this moment and the leach market I'm not going to be of a focus.
I think the wont go from the automation of the onetime factors into three a we are the most receive a significant the likes those rebates from the suppliers in Q3. So a I don't think we have so the also the material by the factors.
Okay. Okay.
Can you also asked me up on a 100.
And the 100 kilowatt battery and whether or not.
What you're putting your margin also the this from the also measured by watch a 50 true back and work on me so interesting that margin for the upside from a battery upgrade.
The <unk> said the dip I don't get on the.
The young wish UN drawn the of a thought on all the UN within Dod the them on media and sort of women, we put a using the value by there would be a mistake of Newport from this new someone who was the trends on the a lot of how would you go from commodity none of the supposedly for some of these would have on a package you some big the.
She part of the bigger to hit other with them and really pleased bigger ones and.
And then from that caught.
Well, if I don't know if on a woman's your the site Youre what about you of I wouldn't put away from handling deals a year of everyone's acquisition and drunk Stefano and idea and.
The them equally important is low.
So the yocum brilliant.
To the you'll be working the curriculum.
Hey, it's always on I saw how will you and you buy billions of it's usually a month and goes into the value thats. The cuts the mute the ago assumes current the social the multitude of season the.
Can you share.
The good book would pull the addition to tens of comes you like a puppy on them see part of it took a more food commodity the season now or the elephant hunting licenses and.
And.
For the 100 kilowatt hour of battery pack the users can purchase the the battery pack at the option, which is going to improve the vehicle gross margin, but on the same type of wells. Her provides a flexible upgrades, which can contribute and.
To the gross margin of other services and so.
These are two different the stories and approaches after the launch of the 100 per kilowatt hour battery pack, we have seen some users choose the true in store the 100 kilowatt fiber a battery pack as the auction and at the same kind of well so part of my is a.
On a flexible upgrade so we also have a some users opted to the flexible upgrades of my mom or by here a weekly.
It's going to improve the gross margin of of the company but.
And so for the new car gross margin on new vehicle gross margin we.
I think the it's not going to have a significant impact but in the loan from the if it's going to give us some book the to the gross margin on for the other cells and the revenue shift how the current.
Remember, the and bulk to give a value sort of the with the idea of so low on the a woman and we see the telecom is a.
You go to cause of the book, She's really young chief of the yeah. So the kind of the in the Golar you got a new she on here and who the flu season.
The thing you do your money a comeback one of the deal.
Not on the good one on a demand boot and.
So to the sole source once on the essential minerals and a bump of show and the due to the between the low and.
And I want to talk a leg down on the money away from the currency, that's amazing value salaried and work with them on no a meaningful makes it quite a few against both gold and we go through the young and two years did and so would a company seemed a little bit of sort of the world. The some of your most of them because we could in the to the ability to use.
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Other logic and so they sort of approach is the basically the 17 kilowatt hour of battery pack and can meet the day.
For the user and the need for the users and the to cover for a long distance than the kind of subscribe to the to the biggest batteries or the batteries was higher density on capacity and use as countries today. The service on the money. This is quite a flexible and this is the advantage of over seven.
We believe the this is all going to the a contributor to the possibilities the on for gross margin and growth in the long run and get the battery pack is a going to provide a very.
Very true yeah.
And opportunity for us and to the improved for the gross margin is the amount of existing users and this is a very unique advantage of of a business model, maybe a we deal with them. We're told a does the civil and increase will you buy a duty on book of course issue the been diagnosed and football women considered a lead on touches upon the other.
And John a few maybe in terms of volume to the take a CD income and you do you see a president Bush and the figure something of a BBB maker and the b shoot to might impact will be on for the balance for the.
The value does include the not touching on the pieces and should be a value she honestly and conduct and the ball. So think of the lead time on the touches of without a doubt the dollar on and they go on to the chip to begin the taking the lead the without a doubt 20 of the whole pivoted the kind of against the.
But on the gross committed of the two boys and.
The 100 kilowatt hour of battery pack or the future of speaker battery packs.
And in the and improve the attraction on for the seven two kilowatt hour the battery pack because of the users of the 72 hour a battery pack and will have the opportunity to upgrade the battery pack on demand and they don't actually needs and to have the 100 per kilowatt hour a bad.
On the packed on 150 kilowatt hour battery pack right from the beginning the can't just use the 17 kilowatt hour battery pack of to make to a to meet the Baird daily use a neat.
Then when it made it they can upgrade to the bigger batteries and a week leaves. The this is going to take a significantly improved the the competitiveness of over 70 kilowatt hour battery pack.
[laughter].
Thank you.
Thank you on the.
Thank you once again, ladies and gentlemen, you made a press star one for a question and it is the hash key to cancel the question.
And again, maybe remind everyone.
The peace limit yourself to a two questions and the made fresh star one again, if you have additional questions then.
The next one is from Edison you from Deutsche Bank. Your line is the open.
Thanks, everyone for taking the questions.
First he took a little bit of out of the the plan and the operational plan to boost the production target and January what needs to get done and get on the gross.
And then secondly.
As it relates to the Nexgen the economy's platform.
Can you talk about your latest thinking in terms of the in sourcing the chip design.
Maybe the indications from a while a relationship and how you think about the use of the wider.
Thank you had this and.
The even when he seems to be the time and Oh go ahead on.
We are sitting on my desk and sometime the times I should.
And has shown us and want to keep the door and take the.
Flow me the time got the good trends and here in the time and no.
And we want the going from us and them coming to the other so on the apartment Linda maybe.
And you go a partner had been and go match or most of the shoe show on the sales guys, who do want to purchase a sharp and Dan I'll Miss you on of a nimble jobs to the the.
All right.
Much of a woman and income was confusing EBIT on the deal production and.
The higher C. A part of the supply chain the upon the on the EMEA step on the committees and from a timing.
So that sort of window and into the that's on our move to a bit on is missing.
A year from and go through all of that to the trend going and she said I had a problem.
A we have always been emphasizing on the of our supply chain per effects on capacity not just the about the of the protection on capacity of Robert on pumps.
And we would like a to work together with the all the supply chain partners to make sure. They can support on the booster of a production capacity.
The users of right now we're on it to wait for some time to pick up of their hearts and because of a third a production capacity constraints and were also trying to speed up of the deliveries there to satisfy the users of the amount of.
So right now were working on a.
The only from production capacity expansion and also working together with the supply chain partners to and their.
Their production capacity, and we're very confident and to be able to improve over a production capacity to seven sound and to 500 to you on it.
Now the are going to digital and relative to the since initiating the methodology and the overtime.
And there is a.
Here's a fit on cleanser the density and then.
The hazard of doing business with the Oh.
Have a few on site on the terms of Babu on the 10 year based on that and within the receded from income type of two for the the downward and total acquisition broadens, the scissors and but I see the adult woman legal chip, obviously, but you didn't look on year sales engine the advantages of on that.
And then go buy something that done leveraging the engine and Boston.
The second question is about from the chips that offer the and two 2.0, we understand a this attracts a lot of attention and the industry and the in the market, but it was still on the sometimes you disclosed the specific information at the annual day Twentytwenty, it's still.
Too early parts of two information of course of the have already length of a decision internally and we believe the we should be able to provide the most of the volume the chips that Wei said the past the performance in the industry and the base kind of how so help us of acute guarantee of a lead.
And because they trained and industry for the coming here in a way.
And your line is not open the what's on a share.
And a shows a woman based on jobs with a tick or two job to go on constantly the recall the way than just listening to take any of the d. The this will be followed the to the T. on 40, a from a total of the leadership then from a political and type of the coatings and that wouldn't be a.
The other way you go to 100 through a focus on the books all of the shoes and Paul.
No I think a a touching the cocos and the win a memo.
From a book was the concur a unique and as a co co snowfall on the get a label doshi on how the TV either of those should give us. The good are you.
And he is the fund flow they couldn't see the Lincoln GAAP total coatings and men's and the other hook recalls and.
And it was a light on the home the second line value of powder.
Right. All you had a force with the moving pieces you actually take a balance from go from some of the door the lights on behalf of the ones to come over a five and then the key issue for a while.
The suddenly you balance and then the booth on the something lies on those but you do the thick of hunk and cloud in both your kind of the.
Yeah on the bigger sort of who the PV. Some of these people the guy the you would have to be the related.
They were really a light that we go to free of sometimes of low down.
How should we go a bit on the either from.
Well the light a question I would like to share some thoughts on the autonomous driving directions hurt.
When thinking about a come the striving we true to evaluate the two aspects. The first one is the how much time, we kind of free up so the users. This is a a question and answer the availability or use the ability. The second question is a how many accidents can we prevent wasted autonomous driving.
And this is a matter of a reliability. So a we need to think about the they said two aspects of only evaluated the strategy of autonomous driving we believe a light I should be able to help raise the both aspect of it creates a very simple math, but we won't need to tackle the issue.
Of course, when it comes true lighter and the winning to balance the base out of the ways all of her product a strategy.
In the future range that the improvement of the cameras and the compute power and we still believe the lighter can play a role in some cases and that the main because they can help us a two reduces the access and the rate and some a corner cases and so like a is a very good a dish.
And to the technology a competence the.
Well the three go by doing a quarterly you found a deal is head of our MRMC and so she she out to two quarters ago. We some of them assuming the current led on shelf from quarterly gross who would be the system.
If a company could use a interest the first then they should find ways to tackle the the technical issues in terms of a cost and performance.
Okay.
Thank the Edison.
Thank you.
We have the next question from Nick Wash the airlines have a pin.
And can you tell me how should take a look a mix of the children, but just on the win T Hollow, a deep interest of Youre and Cook top has capacity come cash from Chicago to social media and the effect on the year. The tandem please dial a teaching and by type a whole you mentioned that a jump quite a sushi China. So the channel at Union for the Union.
Got you, Okay completion of the tendons and trying to win T on that should and types of consumer trends from a kind of the solution total such accident I sort of took a younger the the tend to show on the conjunction with one of the 10 cents to consider a substation took and with a new house to continue on from a tend to the we're like any of the kind of pest control from a.
Oh sure of shows a intensely and in fields that were going on if you tried to union something and don't Incented to your peer of yours on such that you guys I would like.
The potential type don't sort of sound so from racing the cities on T.
No Steven when teachers, you're considering the test the wish on Thats true when you show a subsequent come to winning the took a because took a jump on [laughter] teach it. So that's just on top of the time she the to lead to some of the suits to my interest within which the how the and vendor she might SGOCO my champion and sort of get some thought to stay at least and that was just to talk of the in house logistical true.
The the constrained instituted a wouldn't cheap and then interest of my caution on freight briefly the first question just regarding the cash burn and the kind of pass and the investment.
The next one year for instance, with.
With interest mentioned on our a multi capacity Kim can and ramp up to 7500 in January and with the Minntac and the next one year or so we need to expand on capacity at a jump on a claim on top of the how should we think about the the.
Total needed to be the swap station as well as Neil on new space. So the first pretty spot on a cash from a capex related and second question on on Lewis from autonomous driving solution on strategy.
Based on what the wins on a tremendous just a comment just on or is it correct to understand on our long term strategy is to book should shift from top vendor balance and we will do a most of the office a couple of duty or solution to the house and Q.
So Nick which.
GAAP to the Capex to improve our production capacity mode.
Most of the topic for the covered by Jade.
Of course meal Wilson of.
During the winter.
The total capex.
Our own the the majority of the other countries.
Yeah, and the <unk>, we also will the west more in the a is page of the sales and sales network and also the power substation, but we will manage well of the progress. So I don't think there will a and oh very big bake a spring or the.
And next year.
So yeah, that's about a question about the kind of.
So moving share in the that go a a woman the the the patency of a homeless and Jim the job the lights on the on the womens balance.
She made the of.
Moving to the receivable balance.
The improvement go simple on some of the buyback.
The balancing a leeway going and video to the engine the downward from.
A woman the quickly just on income it does on balance way too so.
So in house of the secular trends on him and me.
You do a museum cubism and the meat.
I don't think in the 100 and sound balance of the.
Some good operating cost of the bigger sunpower suits the Ponzi on your thoughts on whether the plan did not.
No woman, who need a shift from the Doglegs on a problem and seemed a near a pilot and Brazilian cases, the Empire to do some of the ship to the bank and your thought on that interest in a bad.
The balance on our midyear pellet and and harder to the us in terms of Sunpower and of the pound the duties.
You say the yeah.
Yeah, the casino from a woman sales trends on the in house and it's in the the to the recent pass through to the design of lead.
She is and the need to go on and Tesoro and legal functions.
Of.
Of course, the food the a current development the plan and the cash position. We believe the we have a known me for financing in the short term, we should be able to have a sufficient resources to support the business. The development of the company with respect the two autonomous driving directions.
The other objective the is it to do it in house to stack capabilities and for autonomous driving of course, and we have always had this capability in all of our company income.
Recently, we have a even enhanced other capabilities in terms of the algorithm and the system development.
Starting from 2016, we have the developed the the new pilots first the generation by other something how but for the first the generation Neal pallets chip that is the close where you found on the together with the algorithm for the second generation you a pilot of where the like a to make sure we can.
Half of the in house the capabilities, the especially in terms of the outdoors and data and the system development.
Thank you Nick.
Thank you.
Thank you.
We have the next question from the line of Jeff Jeff Channel from Citigroup. Your line is open.
Hey, good morning of of course, you the tariffs on that or.
What did you go with the I wish we share with polo is easier share is a check the oh.
Yes, I mean, the only to try to a really good cultural a budget.
Sorry, the especially good and wish him a much of a good you do a shorter the easy to actual and the shell yeah.
The currency the city to the way you go from the other you good she showed Jewish and out of the country. The coverage ratio basis on which is a real close of the answer the you go in the future.
Sure a do you go and get the other ones either a.
You do on kind of a 72 of the terms from Audi quadrants of the DJ the fate and Somalia kudos to the acquired a.
And the Jewish on wage are well hold that you could see the assumes a year.
Yes, she's a g. on the your momentum you're talking through a Molly on your you acquire year officials on the already on.
Centered on the let's see so my first question. The so it's about first quarter of next year. So sales volume Oh looks a where the biggest you expect Q on Q.
And second question is about the differences between a vehicle GP margin and non vehicle GP margin is a.
A growth a a low and for cost of thank you.
So that's a decision that there's a pick a send out of a consultative and if you do the took a [laughter] took a really lies with the Oh I mean, a room and income and look of the lights out the protocol and dorm and the bigger deals done the bigger a future Ahmanson's, India for your book relative to the balance sheet.
Come on and the easy, though the time into a month into the women's Wilmington, the money the patent shoes of the dot the decline with a Tony on a day or less on the homes of and been done sometime after the women content on the table.
Oh, the Dunkin' brands into a bit of.
And so coming with done because quickens and do now and we've been done from the the those elements you on how big of a leadership.
On went up on the well use on a good yeah, I mean, who got the machine has hung now the we'll Miss you on and go back home and the bigger.
And then the to listen to the new goal Kubota and Linda you from my goal on Hot but you can be a you made on the or do you is the you'll be getting continued on the crew of dealt with the the pool and the know who of December. The go to continue to go up on this you on hand and goes back some businesses will on sunbelt. The this into the model.
And with the and I sort of assets.
The Nobel becomes a lot higher she on for use on them.
How many the incident and and thought about the the and because of the simple the panel on the something the at a time.
And he's only book, which into the mid of maybe key and there isn't a price LG Chem media and digital that will help a bit higher fees in the us, which and the bigger ships with a total of kind of up.
Thank you for a question Jack it's very early to provide the that guidance and for the first a quarter of a 2021 and.
But of course, we need to be fully prepared the income the protection on capacity and make sure. We can meet the usage Mount and the the order backlog. According to the current the order momentum and and that the current of backlog, we won't need to have a sufficient that production capacity for the first a quarter for net.
The year to meet the the order of backlog right now so it's more of a company of a business model is the make it to orders. So we would like a to focus on the level of on for other companies and they talk about the the inventory level by the way focus on the other level, we're looking like a to control the all the level.
We think a reasonable range. So users don't need to wait for a long time to pick up of their cars and we would like and to improve the other production capacity to make sure. We can control of the order level within one month and minister of from the order placement and to the user to evacuate the rig.
Hi, and should be between three to four weeks then we cannot she is a good user experience.
And this momentum with doing the a long time to meet the these targets of it but we want me to a.
Ramp up of production to make sure we can improve the experience and the west quite confident of we kind of a chip for the CES targeting the future financing needs a molly that isn't that the right on the of course future through a woman a you do those two sides of the phase.
And so on a molly or other certain bundles with the from commodity of doesn't from collateral and controller. The go to the diversity of the world and both of them from a lease operating from all the both of the through to the bigger due to the see the PM Hawks landing zones and the download a will move the bigger on it.
And so on to the some people and so you or me clip on a phase and Somalia number of people from the on the T. and doesn't go the on the take a to the the the seasonal how much has the kind of sit on top of the ships imply low now or something to the continues to be the size of a million the convenience of me sorry.
Sorry on the Dumber will mitigate some of the true this year and do those guys on on the tape and some of the leeway there and on the disease when we sell a bright as a a total when some of the new the so really I on the go a bundle and burned down and here to go so true I'm not able to go and the volume down and the down a path.
How does the go Crazy and Ventriloquism TV is we'll get a sort by the somebody's on a down a lot.
Similar to the freedom from the Mali, a quick which had a huge from.
We can continue to kind of the go we didn't listen the movie and then go into the two guys. Some of the new computer to go free.
And could have a bigger a molly food.
The only known to us and like you said the Randall woman part of this and.
The gross margin has been on the rise in the cost of would have to bring it to a consistent the trends and that is the non vehicle gross margin and slower than the vehicle gross margin.
In the past a few quarters. So we have the same boat the vehicle force marketing and to the non vehicle gross margin have been increasing seems like I've mentioned that the comp and frankly on the revenue while the current at the end announced their total gross margin.
And the key areas like kind of.
The value of the company credit has become one more evident and in.
In China, and the coming years that going forward and wake believes that the current credit and its going to contribute to the increment of for the non vehicle gross margin and the same kind of the revenue from other services on the power swapped a can also help on the two narrowed the operating on a lot.
So this is going to increase the together with is the expansion of our of our user base and.
A lot speaking of the non based on whats marketing's going and seeing improved free in the long run and of the battery as a service and parts can also improve the the non vehicle gross margin everything is going according to the plan no work, which we didn't use a woman's genius to the those whose and let the chief and sodium a hospice we talk to each other on your own.
Most of the tour comes from the.
No nutrient tons and the Jimmy and shelter the pool to the you see a free times in a given sudan's so to me and the suicide and in the base some of them a a to deepen the balance out of on the that's almost and I kind of on the.
Women since a lot of reasons.
The pace of assets and so you don't just on exams and continued through the off taker me and the sites even from a total of class Nicholas a two.
Good how are you see less of the lights on a home passes and the two of them and so the 2000 pay a pattern that we've become a perfect.
Some of it without you know comes on the groom TSR selmo amenities and preserve element on kind of a suit on signatures and with a focus on the U cigarettes and goods a assuming on society to the trigger a fad.
And and the freedom for you and hesitate on the balance.
In the fourth quarter were going to receive a day revenues and on the carbon credits, which is a generated by the vehicles the.
In 2000, and the 19th in this year because of the sales the increase the carbon credit number has the increased the by over 2.5 times and we believe that the piece of price on the couple on Friday. The well also example next year so the overall revenue.
On the carbon credit well the four to five high school next year compare with the fifth year.
Now a lot of her Oems are inc. Discussion with a lot about the the purchase of the the carbon credits. So we believe it is a due credit to the system and what kind of thing it's going to the very beneficial to the development of the the industry.
Should we then my what while concurrently.
Good day should they got easier to take a.
Meaning of the example of credit.
And literally it was a meet meet me on top of the carbon credits. The are you assuming the other so dumb occupancy the yesterday and in a city to John John margin to the judge issued a woman. The she is a Nick the attach rate I'm sure that is the whats right away that you go quarter on Jewish open some doors on your boss she the attach rate of switching.
The other source, especially with resembles a true, though a movie like sort of the core the wasn't the Atlanta, Georgia. So a.
So so my last quick two question is about the the carbon credits will will it be acting on a on our piano a next year for Q.
As well, a rather than a spread evenly throughout the four quarters the.
This is number one number two is of all the attach rate on a L.P. and Boston right now and and going forward. Thank you.
They did a few from Sogou back of the legacy the children and give a one of the countries the goods and the shift on the tickets and comparably a hail to the us and go to the.
What does the come on the go and then could you think about on on a more EBIT you do on for the show a figure to go and Macquarie can do and then you might a price all of our mixing and matching the less a logic. So from what we did a very good 200 negotiating the.
Hold on past the take away the organized and so all of them, but yes, and and with the demand a woman coming.
New demands on the non essentially on a woman.
And the methods to see the which is the call non and hopefully that will take it on and.
Let's see the figure on the balance sheet.
Oh.
On the.
So the nuclear page, who own the size and take the.
Think of how the to the into the to the think the yet where you go from sort of a chip.
The combination of the the common kind of the revenue is a quite a flexible we are not going to put the revenue a confirmation and specific a quarter and next year because the pace it depends on the specific and market the conditions. It's a way so too early maybe as the other that's true.
Got it.
So the take rate a test like I mentioned the in November the take rate of a spot has raised the 35% among the new order its a.
Going forward and we believe the this is going to further improve in a long ramp and the the take rate of the near pilot is around the 50%. After the launch of the Navigeight unpalatable believe it a this is going to have a much better performance.
Thank you Mr. Jerry William.
Sure the.
On the debt.
Thank you.
We have the next question from the line of me from the inside the Securities. Your line is now open.
Yes.
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Thanks.
Thanks.
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Hi.
Multiple steps of the going global and.
There could be the old book, Smokies, what kind of what else I owe a going to introduce net market and the.
Hi, a local and commenting on a.
So what the other should a fashion going and put a flashy, but should create a jade like on the guys I'm going to take a lot more.
Some of the line that you guys don't buy a how it takes a lot of shuttering the hottest I'm of the things and Oh, the flash of young and for me and the limit got going on its adult flash of Bisha Clayton the job shop.
Most of what you kind of see a class the or a short time of day put college kids on the what's your flight sheesh, a lot shut them out a whole lot of city and push it wasn't the two other should.
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Of course, you know with a lot of should ultimately you got the dollar judge it wouldn't be a class I don't know eat up a good day.
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It took a dollar and color Tesla the the soon and I didn't mean to the thought on where the lack of course on.
That's the only thing I sort of on the on the assumptions of the shows how you opened the door the timing and beginning to show and the this.
The truth and some good to the gym and to further to go.
The how can you do a bit on on a whole.
Oh on the day, a kind of health of whom interest as we get the young from you on that.
A quick bucking the trend up a whole bigger that go through the year and Golden Summer and both and both of the job from so many of the last forces and the value the warranty.
The bond with a point of what we did on the lights on on a continuous was done job they are women.
Thanks, exciting and a 2 million switching and ended the millions who the these are kind of them down to the the indenture to cover the your EBIT seem to be honest is on your feelings on the.
The holding company this agenda to given that the minimum EBITDA Huntington. The you through a somebody just on that side of and the Super Youre on the the that goes from here to the share you had a system that.
So on the whole the ship and tumble of demand the at least receivable on please.
From Dunkin Donuts inside of the two quarters of the.
And Jim the sort of go farther down the road other the pets I agree.
The line.
We grew the low we're a minute hundreds and cook will yield from the who put it in the money.
As a standard Motherwell typically flow 17, the they're going to sit on healthy from going to use on a.
Right on the motorway and dose of from other banks.
No no.
In addition to the Javier.
And how many before the GAAP.
In the low too.
Sure the weaker on few.
Today, the two accounts and what I kind of while.
The little go quite a bit and Bob when you take a lot of demand days of hence the ULE pool.
We will be something simple thing.
On the gold on the bigger.
For the suits on city that will not only the greenway to the war because our satellites coming on.
On the.
Hold on to the suit on how to go by simply the from that.
The other the team has the citizens and I live in a while many of them.
The.
Thank you for a quest remain on Tesla has the officially announced the that the they're going to have a day local production of the model line and we believe the this is actually the for the users of because the it's a we have a more offensive for the users of this kind of a composite.
Accelerated the popularization offered the deep in the market.
Of course, so we believe the on the test that the strategy is a quite different from you know a starting from last year test of a hazard a cut the price multiple times and they basically have from the pricing strategy based on the concept.
And to the end of a lot here and the beginning of the three years and their price cut has affected that said for about a one week, but afterwards, the over ordering and take it bounced back very quickly.
After the there's the price of the and they also had a separate runs of a price cuts and the most the recent one is the around to the first the of October the price cut is around the 10% and we didn't see any specific the intacta on over the order intake actually.
In October of the order intake has the broke the historic record and exceeded our expectations on.
Over the transaction price the is it a around hundreds of a solvent arms be higher than tax about the average selling price. So we believe it is a proof that the we have over on the unique advantages weighs on the product and services.
I Wonder why the introduction to the kind of market is going to the beneficial for the of all markets, but so we believe the the competition a more about the the competition between what a white and the model free because of we have all the only unique set of undercut the recording of a product and the services.
For the market the situation basically we believe that the pie is the growing bigger and other main income crap competitors in the us market shaping of the definitely current as the train a premium market is a very big market of ways the volume onto a.
Millions of and the to give yourself just gives us a great comprehensive that's a and a half.
I have a sustainable growth and the long run.
The girl.
Yes, a lot of it.
And this is Steve and.
And you had some high level update of our total by this effort on.
First we have a bit of concrete from.
Good day, we will introduce a new market the second half of the little one on.
And then palm.
On the nature of the long term vision for Neil the new the global brand and the what were the first patient to do come and this strategy a step by step.
And so we have three of the principles first we will stick to our use of the price is more than the previous it's a global and the bus. So this philosophy sets and we're real.
The I'll walk kind of brand positioning so a lot key competitors.
And Bob the Aldi hundreds of non sorry, I'll work flows on the service must be a localized to sort of the European customers moving but the update of our current the difference.
Thanks.
Thank you.
A key step on the last question for today I'd like to turn the call back over to the company for closing remarks.
Thank you again for joining us today, if you have any further questions feel free to contact <unk> Investor relations team through the contact information on our website.
This concludes the conference call when the analysis class Youre not thank you. Thank you everyone and thank you everyone.
Thank you everyone settles.
That will consider a conference for today. Thank you all for participating you may now disconnect.
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