 This video is on the Earnings Call Q of 4 and FY 2020 4 Lordstown Motors, the Beta 1 and 2, some news and at the very end a leak. So let's get started. Here's the kind of a table of context. Earnings Call 1, the first is a summary cliff note style. The way I've recorded this is you can take a look at this again and you can pause each spot in the video and you can read what the notes are. It was an hour long and I've summarized it. There's a video of the Beta builds rolling off the line at Lordstown. And some information on the Baja San Felipe 250 race that the endurance has entered it. So let's get started. Okay, here's slide one. Slide one, the CEO, many topics were covered. One hour call. September 2021 full production. 500 employees now 1000 by December went off the line every six minutes and 21 every four minutes in 2022. I believe the crews they're taking out one a minute. 57 beta trucks are being built. Two were launched today. They got 20 K demand right now arrangements reasonable efforts with Homer Enterprises. Homer Enterprises has 2 million lease vehicles. They had to be very cagey about what what their sales were going to be and what their forecasts are because of this SEC thing. But as you'll see from later slides, you got to read between the lines a little bit. Let me go on to the next slide here. Okay, they're going to have vertical integration. They're going to build the battery in the motor and house along with the stamping the paint. The whole truck's going to be built in house. They're going to put a 800,000 square foot production line in just for the batteries and the motors. They already the present vehicle is the endurance pickup. The next vehicle is going to be a high top fan, which is going to be sold initially to Camping World and transformed into the first EV RV. And then, you know, last mile delivery tradesmen, you name it. And they say a demonstration vehicle quotes is going to be available of this high top van in the summer of 2021. So in late September this year, we're going to have the endurance final production vehicle production. It's going to start automated full production, not hand built production full production line running. And the van is going to come out of the prototype or the alpha is going to come out in the summer of 2021 next year. The beta and this is the president Steve Schmidt talking here. And he's the former Tesla director of manufacturing. He's the president of Lord's Time Motor now. The beta is in production. I got video later of the two first two rolling off the line. PPV, pre production vehicle in July. The PPV will go to the National Transfer Highway Safety Administration for crash testing. They have five star rating on safety in the simulations they expect the same in real life. And Schmidt just went over how they did this so quickly. They had to retool an existing plant. And it gave them a year head start over starting a new factory. They also use the GM parts catalog for breaks and things like this that were already certified safe months, six months over regular certification. And you know, Steve Burns has been working on this truck or a truck like this for about 12 years. So there's already been a lot of work. Anyway, they're on schedule to begin production late September 2021. That's it. Coming off the line six cars, six minutes of car, right? Car every six minutes, actually pickup truck. Now, the CapEx, they are spending money to build up the capacity aligned to 60,000 production. Before they're expecting 20K, that's what they're saying firmly for the first year. They've decided to build out the 60K. And they want, so they've increased the CapEx over that. There's been some issues over them doubling their CapEx, but this is why they did it. Also, they wanted to accelerate the high top van, the next vehicle that's going to come out. They also spent a lot of the CapEx as well, their own tooling. And they said this was due to COVID relays. There aren't any really high, high descriptions of this. I'm just going to give you my interpretation. They had to have some final dies made for the stamping, I believe. And rather than go through a consulting house and design those and blah, blah, blah, I believe they did all the designs in house and had them manufactured. And that way, their IP and they owned the tooling and so forth. And they owned the cats for the tooling and so forth. That's what I think it was. But anyway, their CapEx was double what they said it would be. The second half of 2022 will be the initial production of the high top van. The van is going to be the common skateboard with the endurance four-wheel drive electric, blah, blah, blah. All the in-house software for the vehicles will be developed. They're going to own it. It's all going to be IP. The motor design, they're going to own IP for that for North America. Battery pack design and management system. They own the IP for that. And Irvine is doing the software. So the international IP rights for this motor configuration in any way for vehicles in North America. So there you go. I think that's the big news there. Okay, now this is going on to the CFO came up. He was third. First was the CEO, then the president, now the CFO. And there were a couple other people chiming in. I didn't get the name. I'll put a link to the conference call in the description if you want to go over it. So FY 2020 Q4 results. That was ending this month. $38 million loss, 125 million shares. You know, you guys can go over this finance stuff. I gloss over this because I'm not that interested in it. I'm going to go through it anyway. The expenses for the quarter was 11 mil. SGA was 700K on stock compensation. So they spent 28 million R&D, 130K on other. The full results for the financial year 2020. $101 million net loss. And there is 97. I think that should be 197 million class A shares. Or maybe it's 97 million. That may be a correction. Sorry. The expenses were 29 mil. They had a $12 million margin expense. They spent $74 million on R&D, $3 million on compensation. And they made $3 million on interest and sell of equipment. They're pushing the production. Okay. In Q4 2020, they had 630 million cash. As of March 2021, they had 90 mil expenses. And total assets of 767 mil. So the cash flow in 2020 kind of went something like this. 64 million for operations, 54 million on investments. That's tooling and stuff. And they generated 748 million from the SPAC. As of March 2021, 113 million warrant conversions. Total 179 million shares out with all warrants exercised. Not counting staff stop options. So you got 179 million shares out. The liquidity is expected to end FY 2021, March 2022 with $200 million cash on hand. So they're set up to go into production and have cash to spare. 179 million shares outstanding. Again, you guys can go over this. These are rough. I was taking notes during the call. But this will give you a rough idea. Okay. Now these are the questions that were being asked by the investment bankers and analysts that were following the call. So let me just go through a few of these here. The CapEx was higher. It's like double what they said it would be. And it's they want to build up to 60 K capacity on the line to put out 60 K vehicles. They want to accelerate the van build out. And they had to build tools in house because of the COVID. And again, I think these were the stamping dies and other related issues for the van and the endurance truck. The net loss expected is 153 to $1.62 per share. And that's $275 to $290 million loss in 2021. Second quarter 2021, they'll be able to tell you what the demand. They were very careful about talking about demand, but they were, you know, they were biting your tongue. You could tell after beta production will only accept purchase commitments to match capacity. So what they said was right now they're taking letters of intent. They're taking it up a level. In other words, they're going to commit to build them and people are going to commit to buy them, but there isn't going to be a contract, something along that line. Anyway, they're getting real serious about the orders and they had to up that capacity to 60 K. We're going to make it for 20 K so they tripled it. I do believe there's a lot of demand for this vehicle. Once these betas get out, I think it's going to really take off. And, you know, until the Ford F-150 electric comes out, and this we're going to have to see, you know, is this competitive? This is a pretty economical vehicle compared. I don't know what Ford will come out with, but the F-150 is going to be the competition here. That's the number one ice fleet vehicle. But, you know, there is no F-150 and I believe they have a capacity to build more endurances than Ford has the F-150 electrics. So we're going to have to see. But they're going to have first mover advantage. And anyway, we're going to have the first full-size EV pickup truck in mass production in the world in late September. So that's it. We're basically at the starting line here. The betas are out. They're going to get this PPV vehicle out for crash testing. And then basically they're going to, you know, start the production up. My opinion. I mean, that's what the scheduler gave it. Here's some other questions. One guy asked about the news flow. The beta that got out right now is really about 99% of the vehicle. It just needs like airbags. They're not going to have any hand production start out, building models by hand and then go, they're going to go right to the production line. And right through robotics and automation, they're not going to have this intermediate stage where they're building hand-building models and sending them out. It's going from PPV testing right to production. And only Tesla's gotten this far, you know, with an EV. Now, Holliman, and you can look up this name. I think I spelled that right. This is, they do third-party fleets. They buy the vehicles and lease them to other companies. They've got two big vehicles under lease or leased out, 600,000 of them are pickup trucks. It's not in blood, but conditional sales. And I believe the number with Holliman, and again, they're being kind of dodgy about this because of the SEC. I mean, you can listen to the call yourself and make your own decision. I think their initial commitment is 20K, or what they want to do is 20K. Don't quote me on that. Listen to the call yourself. But this is going to be their big, and this is a big fleet manager. This is a big deal. This is a big client. They're going to send them the bet as if they like them. They're going to put them out, and they're going to do 20K. And then, as Steve Burns was saying during the call, hey, these other clients, they may break their leases on their ice pickup trucks. They're Ford F-150s. If they can see that they can save, you know, five times the money, do five times less cost with the endurance than an F-150 ice, they may break their leases and take the penalty just to put the endurance in, okay? And, you know, I don't know if they're going to be there. They're going to wait for the F-150 because the F-150, we don't know when it's going to be out. And we don't know what their production capacity is going to be on the F-150, although, or what the cost is going to be, so on and so forth. Anyway, getting back. So the Holloman is a big deal. The other one is Camping World for the high-top van. The CEO of Camping World did a press conference with Steve Burns a while ago where they were kicking this around. And he said, we will sell every electric RV you can give us. Everyone you can make, we can sell because they have showrooms. They have a whole line of dealerships across the country. They have camping, campgrounds set up, RV grounds set up all over the place. And he said, you know, they are waiting for this. You've got to understand these RVs, first of all, the market for RVs is just going crazy since the Rona. I mean, sales are going through the roof. If you see any graphs on this, just look up a graph on the RV sales. People are buying them like crazy now. And the thing is Camping World is one of the major sellers of RVs. But the other thing is, the rub is, all these ICE RVs, excuse me, they all have like a level two charger connection. And when they pull into these campgrounds, they plug in and there's like a level two charger outlet on every spot that you park an RV. And this is going to allow these electric RV owners, you know, they're going to buy them from Camping World. They're going to probably give them free charging or whatever. But they're going to know there's going to be charging at every campground. And they're going to have these electric RVs. It's going to be a beautiful thing because they're going to be able to go in. They're going to be able to charge them there. They're not going to have to worry about charging. They're not going to have the repairs, the wear and tear and so forth that you have with an ICE engine. And they're going to be all electric vehicles. They're going to have all electric appliances in them. And, you know, they're going to be able to go off the grid for who knows how many days with the battery pack that's in the electric RV. So anyway, the CEO has said, we will sell everyone you could send us. And he's confident of that. So anyway, so right now these are the according to my reading between the lines. These are the two committed parties that they can talk about or that they're inferring about are these two parties. And it's a pretty big demand level just with these two parties to get started. Here's a question from Morgan Stanley on the hub motors. How much on vehicle testing? There's been a million miles of bench testing on these motors, which is what Tesla had on the motors that are in the Model S and the Model X. But people are wanting to know, you know, how many on road testing miles are there. And, you know, I don't think Tesla had this. I don't know that they're really bearing down on these motors. Anyway, a lot of he has 200,000 miles of on vehicle testing. Lordstown motor has 20,000 miles of on vehicle testing. And the alpha builds 57 of them are going to be out driven all over the place as well. And also a lot of he has one million miles of bench testing on these motors. Running in all kind of different conditions and so forth. So this motor has been vetted. I don't know. But anyway, everybody wants to know about the testing. Now, this is this is tell you how much these these analysts know about about the companies they're covering and the technology they're covering. The Morgan Stanley goes Morgan Stanley on us goes the spare the spare wheel on the on the truck, the spare tire. You know, with the integrated hub motor, you know, that's going to weigh something like 80 pounds more than a regular spare tire. Where where is the tire with the motor? Where are you going to carry it? Where are you going to put all this extra weight? You know, honestly, this guy is with Morgan Stanley. He's a Wall Street Sector Analyst. He's covering this company. I hope I got the company right Morgan Stanley. Anyway, the point is, it's an analyst Wall Street. He's covering this company's covering this call. He don't even know how the technology works. They had explained to him for 10 minutes. He kept asking questions. The motor is part of the truck. It's part of the suspension. It's not part of the wheel. It's not part of the wheel hub. It's not on the spare tire. The spare tire is a regular is a regular spare tire. This guy had just, he didn't get it. He didn't understand. Well, what about the extra weight? How are you going to stow that? Steve Burns is going, it's a tire. It's like a regular spare tire. The motors are on the truck. Anyway, guys, see my other videos on this. I go into depth about explaining these hub motors. Anyway, moving on. Then the analyst asked, where will the extra hub motor be stored then? You know, again, stupid, stupid question. Wall Street analysts covering this stock, covering this company asking this question. You don't need an extra hub motor. It's computer controlled. It can run on three motors. It can run on two motors. It can run on one motor. It's four-wheel drive. The motor conks out it's not an issue. You don't need an extra hub motor behind the seat. Oh my goodness. The other thing they were talked about here and asked about was this advanced transportation loan. ATVM, Advanced Transportation Vehicle Manufacturing Loan. It's a DOE loan. Tesla got one of these for $450 million. Back in the day, 2008 helped them launch their company. Ford got $5 billion from it to build a new engine, a higher mileage engine technology that they're using right now. For the first time in a long time, the DOE is considering Lordstown Motors for this. They've done the applications. The DOE has done to do diligence on the firm. They've come out and looked at everything or whatever it is they do. They have, Steve Schmidt was saying, a minimum credit line they've applied for is $250 million. This would be at basic Treasury rates, the lowest possible interest rate. But this is not for sure. I have a video that I did on the APTERRA. It's about the APTERRA founders. It talks about the stuff they went through with this same loan program and how they ended up not getting it. This is not a for sure thing, but this is a big deal. If they get this, this is one of the things that launched Tesla. I think Tesla got $450 million or $490 million when they were coming out with the Model S. Anyway, but that's not a sure thing. The analysts brought it up, not the company. Somebody's talking to somebody about it. Goldman Sachs, the analysts from there said, this video you put out, this is in regards to the Hindenburg report. Hindenburg said, oh, they can't build. They're two years away from building the betas. Goldman Sachs asked the guy, was this a phony video that you put out of the robots welding up a body in white of the endurance pickup? They said, no, that's everything's the same. The stamping, the paint line, the robots, the production line, that's the one the truck's going to be built on. The only difference is it's going to be much faster. But the point is they asked them, this is this Hindenburg nonsense. Anyway, the point is they asked them, it's the same line. Again, I don't know why these analysts even wait. I'm not going to get into it. Now they asked about marketing plans. One of the main things they're going to do is get these test mules out to the fleet evaluations for these main customers. And they want them to see the quality of these trucks. Because this, like they say, is 99, 97% done. They just need to put the airbags in it. On the letters of interest to 100,000 pre-orders, what the SEC is investigating. That is, oh, I misspelled that. I'm sorry, I'm replete with misspellings and errors, but I rush to get these things out. That's a small portion of the interest they have, they said. They have 20K solid in mind from this whole man. But he said they have much more than 100K total interest. They were being cagey about this. They said they don't want everybody to think that we got 20K out of the 100K that we had interested. He said that 20K and that 100K is just a small subset of what they have generated interest. They didn't specify that. Again, they're being cagey. But the point is, evidently, they up the production capacity. They doubled their capex to up the production capacity from 20,000 units to 60,000 units. And obviously they had a reason to do that. Anyway, what they're saying is, those numbers are rough estimates. We got much more than that going on. And they were waiting to get these betas out. So with these betas out, all these fleet managers are going to get hands on. Anyway, they got qualified for the General Services Administration. So federal, they can sell to federal clients. The municipalities are in line. The military is in line. They're not really even talking to them that much yet. Camping World is for sure one of their business partners. So they are funded, what he said was, we are fully funded to do 60K production in 2022 right now. And I'll tell you, if you read between the lines, and you can listen to this call yourself, and I'll just give you my interpretation of it. You know, they aren't seeing bagging, but especially with this SEC investigation and these other things that are going on. They are not, you know, I think they are loading, as I say here, loading up for bear. They, I believe that, I think everybody's going to be surprised. And again, Steve Schmidt, the president, said they can't hire enough marketing people. It's even take care of all this. So anyway, fully funded 60K capacity production 2022. 20K this year, you know, starting in September. Okay, now here's one. Now they got, now this is a really big confidence boosted, I mean, I want to say ballsy move by Lordstown Motors. They entered into the San Felipe 250. And it's actually more like a 290 mile race. This is a Baja race in Mexico. And I got some video of it in a minute. They're going to enter a beta endurance in this race. And it's not going to have any special modes. It's not going to have any special batteries. You know, they're going to have safety equipment on it. I believe they're going to raise the, I got a picture at the end of this. I think they're going to raise the wheels up and put a special suspension in it. But anyway, they're putting it all on the line. You wait until you see this video. Bern says it's not going to be a starting park. They're going to run the whole race. They're going to push the battery. They think they can get 290 out of the battery. I think the battery is rated for 250 or 240. And they say if they can do it without having to stop the recharge that they're going to have a really respectable finish. And I told you, I have a leak on that, that this truck was running on the track at 120 miles an hour. So anyway, it's 290 miles. Anyway, this is, as Steve Bern said, this is the proof of concept on the truck. And this is to show everybody, you know, all the doubting Thomas is about what this truck can do. And this is April 17th. So this is in two weeks. We're going to all see. I can't imagine they would enter this race if they didn't think they could finish it. And I am confident. I mean, this truck is, you know, the other vehicles that Lofi had these things on, you can see the videos online. I mean, these motors work well. And I think the design of the truck is, you know, the frame is indestructible. According to the marketing guy. And, you know, they got the four-wheel drive and they got the computer-controlled traction torque vectoring. You name it. I mean, this is an advanced propulsion system. Conventional looking truck, very advanced propulsion system. This is the unique selling point of this vehicle. Is this production, this propulsion system? And I think it's going to show that it's energy efficient as well. All right, now here is the, here's some footage I have of this San Felipe race. And this is a previous race. Now you can see I'm going to turn the sound down. Now there's some motorcycles in here, but these are just the flat sections. I mean, this is a 250-mile court. Look at that. It's famous for the whoops. Those are the whoops. And this is all through the desert and everything. And you could see these trucks, purpose-built trucks going through. And there's going to have an endurance. Now this is a wash. This is this Mexican wash area. That's a famous part of this course where they have to go over these really extreme conditions and rocks and things. And they have a Baja bug class, a classic Baja Volkswagen class in this race as well. But anyway, you can take a look at this and you can see these rock crawlers and everything. So, I don't know. It's going to be a real test for the endurance. It's not a joke. This is like the baby Baja 1000. It's like the Baja 1000 only. It's not as long. Anyway, the same type of vehicle is running it and so forth. But you can see, and you can check online, big deal, big race coming right up. I'm sure they're going to have a lot of video footage. We'll see if the truck can finish the race without recharging. That would be a big deal, 290 miles. And we'll see how it performs. Hoping it'll do well. Like I say, I can't believe that they would enter this in this race without knowing that it was going to be a big performer. I think it will. I mean, from what I know of everything about this truck and again, this motor system propulsion system is a big deal. I think it's the main selling point of this truck. Here is the video of the... And this was just out today. As they said, the Hinberg report said, they're not going to be able to build these trucks for four years. The Goldman Sachs guy said, would you have a phony setup with the line? These are the trucks that came off the line. They built these. They stamped them beginning to end. Full production line, automated robots, so forth. Here's the first beta. That's the first one. Number one. I think it's a pretty cool looking truck. I don't know. That paint job, you know. But there's the first one. First EV pickup, full-size EV pickup. That's it. There's number two. It kind of looks like a Harley-Davidson. That's the second EV pickup made in America in the world. Now, so production. Off a full production line. And again, this is all done at Lordstown. The motors, the battery, the stamping, the paint, the assembly. There it is. There's Steve Burns. And you can see this is a big truck. And again, this is one of the vehicles that they're going to be entering similar to this with the safety qualifications on it. Alterations on it, rather, for the San Felipe 250. There it is. So, okay, doubters. Okay, Hindenburg. There you go. Two betas down. 55 to go. So they made that deadline. So late September is the next one to go in a full production. Anyway, that's it. I hope you guys liked the video. I tried to keep this short. Go to the end here. As I say, I got a leak down at the bottom there. Sources have told me all they have to do is hire enough people that everything's ready to go. I don't know. They see me informed. That's the word I have. This is MSUX. Thanks for watching the video.