 Hi guys this is MEXUX this is on the earnings call. Hi this is MEXUX so I'm just gonna go over real quickly this slide deck and make some comments while I'm doing it. I've marked the slide deck up a little bit and I think that there's some things worth noting here. This is the non GAA they went outside generally accepted accounting principles to give a better picture of the financials and that's because of all these changes and so forth it's clearly noted here you can read this on the on the screen here you can pause this or whatever. So there is that the big news with this earnings report of course is the partnership that has been granted to Foxconn. Foxconn is now a 20 percent about 20 percent owner of Lordstown Motors. They have two board seats which are going to be passive board seats they're going to go along with whatever the majority of the board rules and the board's controlled of course by a Neovage and Hytar at all Angie Strand and so forth. The cash injection that's coming from this immediately I believe is 50 million and that would leave 120 million or so to come next quarter ish after a FICA investigation and grant allowing this to take place this investment. On the screen right there this is a quote noting strong interest from fleet managers in the endurance. The endurance is a shoe end to be a success as a fleet truck there's high fleet demand the only thing fleet truck of fleet owners are waiting for and they are ready to switch brands is availability of a truck. And I have here that this statement was made and this is regarding the slowdown of this initial production run which is a limited number of units and Danny Avaji made a comment that certain parts were missing so Hytar has said that the supply line will be completely worked out by March of next year and the truck should there be and if there is and there should be funding I think of for production to start in earnest. I have here that the certification is it's complete they're waiting for the paperwork to come through. The range is 200 miles I think there's two things here I have down here they may have a software update to increase the range which would be a nifty idea especially for fleets build one battery size offer an option to upgrade. The other thing could be with the range on this truck they're waiting for the official certification from the EPA so they're kind of sandbagging on that a little bit as they are as they are sandbagging on the demand from the fleet companies and now here's the North American truck of the year you know through all this there hasn't been one bad review on this truck I can't even find any bad comments again here this mentions the fleet strong interest from fleets I think this is very important as far as this presentation goes because Lorshtown Motors is under investigation for speculating on orders and Steve Burns as you can see by the sales or the orders on the F-150 Lightning was in my mind totally corrected his estimates for sales and Jim Farley made estimates for sales and no one called him on it but anyway with the SEC investigating that topic at Lordstown for them to make a statement saying that there is strong interest from fleet owners and buyers and managers that's a big deal in my opinion this involves the payouts of the the tranches for the preferred and regular stock in this partnership deal the joint venture has been done away with it has been replaced with a partnership I believe a partnership implies 50-50 whereas the joint venture was 45-25 all the debts have been done away with with the joint venture and any expenses from Lordstown made on that behalf are going to be repaid this stock is going to be purchased in a way to cause the least amount of dilution to stockholders they have some they bought I believe all the preferred stock and there is preferred convertible stock in any case what in my mind high tower and Neovagi are protecting the stock price are protecting the Hodlers and they know that the Hodlers are supporting this we have to remember high tower basically has one million shares of Lordstown Motors and he was both the CEO of Lordstown and the joint venture now I'm sure while they say that Lordstown Motors is going to take over production under the partnership so he's going to be the CEO of the partnership this is the this is the financial summary here you can read through these there's there's all kind of reductions going on here to the tune of about 30% in R&D and 38% and so on and so forth 50 million I believe is coming in any case we got up we got 117 million of the 70 million coming in Q1 Q2 of 2023 so there is a cash injection now which will you know sustain the sustain the company the burn rate was 90 I believe the last burn rate was 150 a quarter that may drop down after they make these initial fivers or whatever units to sell to qualify for a North American truck of the year so let's go with a 90 90 mil Burke burn rate that's what it has been I think it's actually going to drop from that I think I think we're good till like Q3 of next year if we just have just that standard burn rate with no you know no extraordinary expenses or anything that could vary with the production and so on and so forth but needless to say there certainly is enough financial room for Lordstown to be able to negotiate this partnership with an OEM manufacturer that Neovage has spoken about in the last two earnings calls and that involves being the manufacturer of the endurance for example for a company like let's just use Ford as an example I know a lot of the executives at Lordstown Motors are ex-Ford executives and I know there has been some scuttle but saying that some Ford people were at Lordstown Day or at the meeting that Foxconn held looking for people to come into the valley let's just speculate and I have no information on this whatsoever other than what I've said Ford would be the OEM partner Lordstown Motors would contract to build the endurance through Foxconn and through a Lordstown Motors partnership with Foxconn for Ford they put a different facial on it perhaps a different dashboard and this would carry Ford badging and for example it would be sold under the Ford brand as a Ford for example perhaps a Ranger something of that nature a mid-priced consumer model and this would be in the endurance under another name distributed by Ford now Ford's having a hard time meeting demand for their products they are having a hard time making production this would give them instant input now you can substitute Toyota Dodge Subaru any of these other companies in this equation it's all the same equation immediately having a certified homologated product ready to go ready to go into production immediately upon signing the partnership with Lordstown Motors and for Ford they have so much unmet demand that this could take pressure off of them for example and by the way in my opinion Lordstown Motors would stick fleet quickly strictly to the fleet market and sell these white label I call them endurance trucks to the consumer market through an OEM partner that's how I think things are going to go and of course there would be all kind of revenue generated through this effort and again it would be the endurance it would be rebranded let's say with a Ford oval this speculation on my part sold through Ford dealerships sold through the Ford website branded as a Ford item I think this is a here's the thing Neovagi has talked about this for two calls to date if I'm not mistaken everything they have talked about in these calls has come to fruition is past performance is no predictor of future performance however that is the baseline that's been laid down by Neovagi and of course this the in my mind I think Neovagi is planning this out if they had an OEM partner along with Foxconn that would be a balance between the two major players who are in a partnership with Lordstown Motors I think this would put them in a better negotiating spot with both of the partners okay as far as fees and revenues and so forth and I think this is what Neovagi is trying to do but anything I think it's a great strategy the asset light strategy is working out for Lordstown I have you saw the reduced costs earlier the year over year loss is down like 38 percent so financially Lordstown Motors is lean and mean management is trying to protect the stockholders they have operating capital to get them through we're awaiting production now the funds in the partnership with Foxconn there's a hundred million to develop a battery electric vehicle program for the MIH platform I had mentioned in my podcast on this that that could be the Model C the crossover which is presently being built in Taiwan by Luxgen and marketed under the N7 I believe or the X7 badge this is a two-row mid-price mid-size crossover BEV which is great for the features and so forth that is ready to go Lordstown Motors did receive the IP for that vehicle upon upon the sale of the plant that was one of the conditions of the sale as well Lordstown Motors received the IP for the Model E which is a Model S competitor with Tesla a high-end sedan really designed to be to have a driver and an executive passenger in the back there's large TV screens and so forth you can see my videos previous videos on this vehicle those are two possibilities of course the Model V pickup truck looks very much like the endurance whether that would be on the MIH platform I don't know I don't think so but it very well could be but I would say the Model E or the Model C or the most likely that Hightower did say in a question in the press conference that they had begun work on to preliminary work on to MIH programs and this was at the very start of the association with Foxconn and those two programs were the model in the Model C according to the IP that was transferred to them so going this is this is the year-over-year loss you can see with 38% down Lordstown Motors you know with the capital required to meet this production and they are a free revenue startup and this is what happens you always need capital Tesla's white knight was Mercedes which ended up selling its stock in Tesla but we're in the same spot with Lordstown Motors but what a spot to be in the vehicles done the vehicles great the vehicle I don't even feel a need to talk about the truck anymore because it's so so fantastic and so perfect and I think we're going to possibly get a surprise on the range numbers either through the region power 30% increase region power of hub motors or be the EPA certification will be higher than the 200 already stated with Lordstown Motors sandbagging that figure or see through an over-the-air update now that was the beginning of this I have some cards here I'm just going to read through a few few ideas I have here as far as what this deal is about Foxconn ownership is frozen for two years with this deal and I do believe that is to protect against the takeover and to ensure Lordstown has a space to grow its stock price we spoke about the white label we also have an additional funding is the Yaw associates we have at least one quarter of funding and that is a stock for cash deal there we also have the possibility of a stock sale if there is a catalyst that catalyst may be being appointed truck of the year of course the OEM partnership is what Neovagi is talking about and just a couple other possible partners you know Ford Toyota Subaru Dodge these all could use a pickup truck be the pickup truck again Foxconn now has a new model model X which is going to be a three-seater one-row three-seat car made for Asia and this is going to be a low-cost kind of a plug-and-play car they're going to be able to choose options over the website and build it to order so they've got the ECB VX okay and they have a six seat and nine seat vehicle plan for 2024 this is all Foxconn now mind you Lordstown Motors is going to develop all those models for them in my opinion anyway as I said Foxconn has silent board members they got about 20% of the stock there's all kind of limits on their ownership they've been gated in in pretty tightly on this joint venture I think that Lordstown Motors actually got a very favorable deal out of this and I think that partnership implies a 50-50 split of revenues now this new BV developed for Foxconn you know will it generate revenues it depends on the terms of this partnership which I haven't found yet okay but so that's a unknown at this point a known unknown I believe that the tooling that Lordstown Motors says it needs in addition to the funding for the production of the endurance I believe this hard tooling involves the stamping dies and I think they have to limit the production to 500 units because the soft prototype stamping dies can only produce so many units till they start losing their edge and I do believe this is the tooling that is required that they keep speaking of I do believe before COVID I think the cost associated with the hard tooling was about 90 million I may be wrong on that but that was a cost that was just going to be spent before the reconstitution of Lordstown which was held off the conserved cash for the balance sheet which Crawl has continued Foxconn really needs Lordstown Motors to go forward okay the thing is Foxconn doesn't have this is their own plant in the biggest market in the country and Foxconn now everybody's looking at these announcements from Foxconn and Foxconn is a great company in a very smart company and I think they were smart to enter into this partnership and put Lordstown Motors in more control but you have to understand Foxconn is a phone and electronics maker they do not understand the regulations and the international regulations regarding auto safety and the other things that have to be taken care of when you're producing BEVs for the US or global market Lordstown Motors is absolutely key to Foxconn's pivot they have joint ventures with Luxgen and some other manufacturers I am doubtful that any of these manufacturers know or understand in great detail the US auto regulation maze I think Foxconn is absolutely dependent on Lordstown Motors to produce these vehicles for the US market at their only own plant which is in the USA which is the biggest vehicle market in the world and and they are dependent on Lordstown Motors to design and get these vehicles into production and also Lordstown Motors can and will certify these vehicles to be sold all over the world so you can see Foxconn is doing the the overall function here of entering the BEV market and they have they will be able to put the supply lines together and they will manufacture most of these parts that go into these vehicles in my opinion they'll manufacture over 90% the thing is and they will put together the assembly and they will manage the assembly line and they will get the workers together they also are going to be doing a great deal with cloud software and this is a big emphasis of Foxconn and so the software and and the entertainment software and the in-car purchases or whatever else maybe be this is going to be something that Foxconn is heavily involved with Lordstown Motors would certainly be involved with this as well but also with the over-the-air updates for updating drives and battery management systems and so forth anyway so Foxconn's closed to buying more stock they need need Lordstown approval to buy more stock okay they're frozen out for two years anyway if Foxconn would have to renegotiate with Lordstown Motors to buy more stock or do a take over so there's that I do not believe I I'm not a corporate lawyer I don't know corporate law but I do not I do not I believe under the terms of this partnership there are so many restrictions on Foxconn stock ownership I do not believe they can do a takeover nor do I think for example high tower with a million shares of stock wants them to do a takeover until he can get the price of his options up and his stock holdings up because you know no one wants to see a takeover at a dollar a share and that is critical to high tower who's holding a million shares so we have a we can all look up to high tower he's going to be taking care of the hardlers in my opinion but anyway that's an interesting fact they have to renegotiate with Lordstown and again we're looking for a kind of a white knight to come in and balance this partnership with a major corporation with the partnership with yet another major corporation this major corporation in the auto industry and with Foxconn being the pivot point between the two I think it's an excellent strategy and we will see I have no insight information on what's going on however Neovology clearly stated that you know we are pursuing it and I believe he said discussions are underway there is no firm news so we'll have to wait until we see that anyway as I said end of year cash in 2022 on the books that Lordstown is going to be 150 to 165 mil there's about a hundred mil coming Q1 Q2 of next year so two hundred sixty five million dollars that that is I believe their cash position something along those lines again I think that should get them through for Q1 Q2 of next year into Q3 will that be enough to get production underway the answer to that would be no however we have your associates as an available source of capital we also have potential stock offering with the right catalyst and we have a secondary OEM partnership we keep mentioning which could also be another search source of capital also under this partnership I have no details on this partnership under the old joint venture certainly Lordstown Motors would generate revenue under that venue under that contract the joint venture Foxconn now has potentially 20 clients I believe they have five or six presently signed up to make cars at Lordstown now Lordstown is going to manage all bev development at at Lordstown motors at the Lordstown facility that means they're going to be doing the interval for example the Fisker pair that is a conceptual design they're going to flesh that out I do believe this and the other projects that are the IDEV is another one that's mentioned of these engineering efforts by Lordstown in my opinion should also generate revenue for Lordstown Motors how much when that will appear in the balance sheet I do not know so I guess what I'm trying to say is there are sources of revenue outside of getting an OEM auto manufacturer as a partner in addition to Foxconn as a partner and by the way I think you know I did I did mention it before Foxconn is the VP of business development said they got 20 clients lining up they're gonna for the factory in addition to what they have now that's 25 they're putting in housing they're gonna put in a university extension to train and attract new workers Foxconn this is their the jewel in their pivot in the crown of their BEV work is this Lordstown facility and Lordstown Motors is the keystone to the success of this facility and they have an excellent working relationship with Lordstown and they need Lordstown Motors to succeed and Lordstown Motors needs Foxconn to succeed and I think it's a very good relationship and I think in my opinion I am very I am more bullish now than I have been on this security I think that it is in the best position that has been in to date now even though lacking the funds I do not for production I do not believe they lack demand and they have a finished product so it's only a money problem and you know maybe that's a good problem to have because maybe that's the easiest one to solve or at least the most solvable one we're not facing some gigantic technical issue that's gonna stall the whole program this truck is perfect I mean believe me if there were any flaws in this truck they would have eviscerated it with these reviews with everything that's going on with you know the major OEMs advertising and all these publications and everything they have said not one bad thing about this truck and the Spanish media Spanish language media is raving raving I have links I'll try to put them in the description of this video of two Spanish language reviews and the last one the guy goes people want to know when is this going to be available in Mexico we want to buy this truck so again the only problem we have here is a money problem and it's kind of a big it's a pretty big money problem but in my opinion we've got the best guys ever in a position working on this and that's Dan Neavadji who is a Carl Icon Capo apex predator New York money guy you can see the drop in expenses drop in the loss rate year over year is 40% for Lordstown they are managing their money and they have always managed their money smart at Lordstown Motors but anyway I just want to go over something here now you know institutional the release of institutional buys and sells is always late but the nearest information I could find is BlackRock owns 5% 4.89% of Lordstown Motors and that's an increased his increase 6% Invesco owns 4.4 2% of Lordstown Motors and that is a 26% increase PBW which is a clean energy ETF owns 3.66% of Lordstown Motors and that is a 28% increase in ownership the portfolio weight of Lordstown Motors amongst institutional investors has increased 5.46% and there's the inner institutional ownership has gone up 17.92 and I'll just close this by saying that Steve Burns has sold some stock there's some hay been made of this I just want to say number one Steve Burns is facing formidable legal costs because of the DOJ and the SEC investigation so I don't think anyone can fault him for generating cash in and I think you have to look at it in that light anyway I think this was a bullish call I'm gonna have to make additional videos on this I believe because of the amount of information and the updates coming on it so this is MXUX I think we're gonna call it a video thanks guys for listening guys this is MXUX please do your own DD and confirm this information to your own satisfaction I'm not a financial advisor account engineer or lawyer and there's a lot of information here you got to do your DD thanks good luck in the market