Morgan Stanley Laguna Conference: Lucid Motors

[00:00:26] [SPEAKER_00]: Hello and welcome to the podcast. I forgot which podcast I was doing. Hello and welcome

[00:00:33] [SPEAKER_00]: to Kilowatt, a podcast about electric vehicles, renewable energy, autonomous driving, and much,

[00:00:38] [SPEAKER_00]: much more. My name is Bodhi and I am your host. On today's episode, we're going to

[00:00:42] [SPEAKER_00]: talk about Morgan Stanley's 12th Annual Laguna Conference. To be more specific, we're

[00:00:48] [SPEAKER_00]: going to talk about Peter Rawlinson, the CTO and CEO of Lucid. He was interviewed by, I

[00:00:57] [SPEAKER_00]: can't remember who the interviewer was, but he was interviewed by somebody from Morgan

[00:01:01] [SPEAKER_00]: Stanley about Lucid as a company. I thought it was interesting enough that we could

[00:01:07] [SPEAKER_00]: talk about it here on this podcast. Before we do that, I just want to give a friend

[00:01:12] [SPEAKER_00]: a little plug here. Steve Sheridan recently with his wife, Alison Sheridan, they went

[00:01:20] [SPEAKER_00]: to do this amazing safari in Africa and Steve's been uploading bit by bit videos

[00:01:28] [SPEAKER_00]: that he took while he was there onto his YouTube channel. His YouTube channel is

[00:01:32] [SPEAKER_00]: at SP Sheridan. You can go to youtube.com forward slash and then the at symbol SB Sheridan.

[00:01:40] [SPEAKER_00]: If you want to take a look at that content, I'll also put a link in the show notes.

[00:01:44] [SPEAKER_00]: Oops, excuse me. I'm looking at a cheetah sleeping. Looking at there's lions and rhinos

[00:01:54] [SPEAKER_00]: and there's some elephants, just a massive group of elephants in a tree. So I would

[00:02:00] [SPEAKER_00]: highly encourage you to go and check out his videos. They're not very long. I think

[00:02:04] [SPEAKER_00]: the longest one's a couple minutes. Most of them are just 30 seconds or so. So if

[00:02:09] [SPEAKER_00]: you want to get an idea of what an African buffalo looks like up close, you could definitely

[00:02:15] [SPEAKER_00]: do that on Steve's page. Again, there is a link in the show notes. And since

[00:02:20] [SPEAKER_00]: you're already browsing the web, you might as well go to nocillicast.com and

[00:02:24] [SPEAKER_00]: see what Alison is up to and subscribe to all of her podcasts as well. And if

[00:02:29] [SPEAKER_00]: you get a chance, tell her how much you like her new bumper music.

[00:02:32] [SPEAKER_00]: All right, enough of the free plugs. Let's go ahead and move on to the first question

[00:02:38] [SPEAKER_00]: to Peter Rawlinson, which is really it is a question and it's a bit of a recap from

[00:02:45] [SPEAKER_00]: their technology and manufacturing day. So let's listen to that.

[00:02:49] [SPEAKER_02]: The plant is immaculate. You can literally eat up the floor. It's got hundreds of

[00:02:54] [SPEAKER_02]: beautiful robots, a super modern paint factory. Amazing technology. You spent a lot of

[00:03:00] [SPEAKER_02]: time showing off the powertrain technology and how electricity is distributed and

[00:03:04] [SPEAKER_02]: moved around the car and power the vehicle. Besides the software, it really was

[00:03:09] [SPEAKER_02]: kind of tour de force of the technology that you bring to the table. And you don't

[00:03:14] [SPEAKER_02]: win awards like you've won without having real stuff. You clearly do. But I

[00:03:20] [SPEAKER_02]: like to think that the technology kind of gets you into the, you know, across the

[00:03:26] [SPEAKER_02]: velvet rope, maybe into the club. But to get to the VIP room, you got to get

[00:03:30] [SPEAKER_02]: your costs down. And I think you and your team have also

[00:03:33] [SPEAKER_02]: emphasized that as well. So obviously the volume is what 9,000 units.

[00:03:39] [SPEAKER_02]: You're smaller than Ferrari in terms of unit volume right now.

[00:03:42] [SPEAKER_02]: And you've got a plant that's built for a hell of a lot more than that. So

[00:03:46] [SPEAKER_02]: walk us through some of the key messages and as we kind of go from

[00:03:49] [SPEAKER_03]: from air to gravity, mid-size. You're quite right. So the plant is in the process of being built out to 90,000 unit capacity.

[00:03:59] [SPEAKER_03]: Will be very soon. And we've indicated we intend to build 9,000

[00:04:07] [SPEAKER_03]: least air this year. You're absolutely right. So our trajectory is all, and our costs

[00:04:14] [SPEAKER_03]: and our finance are dominated by long-term investments for the future.

[00:04:19] [SPEAKER_03]: You saw that with a degree of automation, technology and a process technology, robots

[00:04:26] [SPEAKER_03]: and vertical integration, both of stamping right through to bonderbox, electronics line,

[00:04:33] [SPEAKER_03]: making our own electric motors and the battery pack we're famous for.

[00:04:37] [SPEAKER_03]: So all of that. But we've really got a four step process for growth.

[00:04:44] [SPEAKER_03]: First of all, we need to improve our brand awareness to grow our sales of least air.

[00:04:52] [SPEAKER_03]: And that's coming on nicely. We just come off the back of a record Q1 and a record Q2.

[00:04:57] [SPEAKER_03]: And we're heading very nice and very pleased with the way Q3 is going.

[00:05:01] [SPEAKER_03]: We actually outsold 23 numbers by the end of August this year.

[00:05:08] [SPEAKER_03]: So that's going well and it takes time to build a brand. So that's going nicely.

[00:05:14] [SPEAKER_03]: The second step, of course, is getting the gravity SUV into production.

[00:05:20] [SPEAKER_03]: That's scheduled for start of production late this year.

[00:05:24] [SPEAKER_03]: And hopefully Bill can make an announcement about that in more detail very soon.

[00:05:28] [SPEAKER_03]: So watch this space.

[00:05:30] [SPEAKER_03]: Then we've got the really the big one, which is the mid-size platform coming in.

[00:05:35] [SPEAKER_03]: And that's scheduled for production late 26.

[00:05:38] [SPEAKER_03]: And to that aim, we're currently building out a plant, another plant on the other side of the world

[00:05:43] [SPEAKER_03]: in Saudi Arabia with a capacity, an installed capacity of 150,000 units.

[00:05:50] [SPEAKER_03]: We've laid the foundations for that.

[00:05:52] [SPEAKER_03]: We're currently in the process of erecting steel.

[00:05:55] [SPEAKER_03]: So that's where mid-size platform variant will go.

[00:05:59] [SPEAKER_03]: We're also going to put a variant into Casa Grande in Arizona as well.

[00:06:04] [SPEAKER_03]: And then beyond that, and that will give us some serious scale.

[00:06:08] [SPEAKER_03]: I mean, the vision is I want us to be making about a million cars a year in the early 2030s,

[00:06:13] [SPEAKER_03]: 31, 32, somewhere around there.

[00:06:15] [SPEAKER_03]: And mid-size will enable us to do that, I believe, at a price point of about $48,000, $50,000.

[00:06:22] [SPEAKER_03]: What are your benchmarks for that?

[00:06:24] [SPEAKER_03]: That's an unashamedly Tesla Model Y model 3.

[00:06:28] [SPEAKER_00]: OK, did you hear the hmm and hmm after Peter said that he wanted to build a million cars a year in 2031, 2032?

[00:06:40] [SPEAKER_00]: That's a lot. So remember that. Keep that in the back of your head.

[00:06:42] [SPEAKER_00]: I do think this was a good summary of Lucid's technology manufacturing event.

[00:06:48] [SPEAKER_00]: You know, it's not obviously Peter Rawlinson is a really bright engineer.

[00:06:53] [SPEAKER_00]: He's a really smart guy.

[00:06:55] [SPEAKER_00]: So when people say when they reduce him down to a carnival barker and basically is like, you know, he's all he cares about is marketing.

[00:07:03] [SPEAKER_00]: Well, no, he actually has an engineering background and he's very, very smart.

[00:07:09] [SPEAKER_00]: But he is also a really good marketer.

[00:07:13] [SPEAKER_00]: He is a carnival barker.

[00:07:17] [SPEAKER_00]: So, you know, people are wrong with that, but you can't just reduce him down to being a really good marketer without, you know, keeping in mind that he's actually a really smart engineer.

[00:07:29] [SPEAKER_00]: Right. So. How do how do we get into this here?

[00:07:35] [SPEAKER_00]: One of the things let's let's go over the pillars of success for Lucid.

[00:07:42] [SPEAKER_00]: Improve brand awareness.

[00:07:44] [SPEAKER_00]: He has said this a lot over the years, especially in the last year or so.

[00:07:51] [SPEAKER_00]: At this point, people should know the name Lucid.

[00:07:55] [SPEAKER_00]: And I think a lot of my friends know the name Lucid who aren't in the EV space.

[00:08:01] [SPEAKER_00]: But if you're if you're saying improve brand awareness, I would say at this point, people should be aware of your brand.

[00:08:09] [SPEAKER_00]: They should also know that it's a luxury brand and a lot of people can't afford it, but they should at least know your brand.

[00:08:17] [SPEAKER_00]: Not everybody, but the majority of folks.

[00:08:20] [SPEAKER_00]: And then the next pillar that Peter mentioned was the Lucid Gravity.

[00:08:23] [SPEAKER_00]: It is a luxury three row SUV production and delivery starting at the end of this year.

[00:08:32] [SPEAKER_00]: Peter wouldn't confirm what the price was.

[00:08:36] [SPEAKER_00]: But the interviewer was like, well, around $90,000.

[00:08:42] [SPEAKER_00]: But Peter wouldn't commit.

[00:08:43] [SPEAKER_00]: But he did give some of the vehicles that he they were comparing the Lucid Gravity to.

[00:08:52] [SPEAKER_00]: And that was the Porsche Cayenne, excuse me, the BMW IX, the Mercedes EQS SUV and the Rivian R1S.

[00:09:02] [SPEAKER_00]: And he listed those as competitors.

[00:09:04] [SPEAKER_00]: Now, I suspect that this car is going to come out and initially it'll start over $100,000.

[00:09:14] [SPEAKER_00]: And they'll have a similar naming convention to the Lucid Air.

[00:09:17] [SPEAKER_00]: They'll have the Touring, the Grand Touring, the Sapphire.

[00:09:21] [SPEAKER_00]: And they'll probably the Grand Touring will probably be their launch vehicle.

[00:09:24] [SPEAKER_00]: And that's going to cost over $100,000 for the Lucid Air or Lucid Gravity.

[00:09:29] [SPEAKER_00]: That that is my guess.

[00:09:31] [SPEAKER_00]: The next pillar that he said was based on their basing Lucid's success on was the mid sized vehicle,

[00:09:41] [SPEAKER_00]: you know, $48,000, $50,000 vehicle that's coming out in 2026 and the Saudi plant.

[00:09:49] [SPEAKER_00]: So I want to talk, you know, the Saudi plant is interesting.

[00:09:52] [SPEAKER_00]: 150,000 vehicles a year.

[00:09:54] [SPEAKER_00]: Not a lot, but that's an interesting pillar.

[00:09:58] [SPEAKER_00]: And we're going to talk a little bit about that later.

[00:10:00] [SPEAKER_00]: But I want to talk about a million cars a year and the mid sized vehicle that they're they're planning on building late 2026.

[00:10:09] [SPEAKER_00]: Right now, today for 2024, their delivery or production goal, I can't quite remember which one it was.

[00:10:17] [SPEAKER_00]: It's 9,000 cars in any case.

[00:10:18] [SPEAKER_00]: So whether they're going to produce or deliver 9,000 cars, that's not very much.

[00:10:26] [SPEAKER_00]: Again, the mid sized car comes out in 2026.

[00:10:28] [SPEAKER_00]: So, you know, let's say it's actually released in 2026.

[00:10:34] [SPEAKER_00]: There's going to be a handful of cars released in late 2026.

[00:10:37] [SPEAKER_00]: It's not going to have any meaningful number or impact on their sales for at least that period of time.

[00:10:46] [SPEAKER_00]: That so that means 2027.

[00:10:48] [SPEAKER_00]: So that means Lucid has four to five years to scale to a million cars a year.

[00:10:56] [SPEAKER_00]: Right now, they're doing 9,000 cars a year, even when Tesla wasn't doing, you know, when they were doing just the Model S and the Model X.

[00:11:06] [SPEAKER_00]: You know, they they were, you know, 50, 60,000 cars a year, not 9,000.

[00:11:13] [SPEAKER_00]: So a lot can happen in that four years.

[00:11:16] [SPEAKER_00]: And when you're spinning up a new vehicle, and I'm specifically talking about the mid sized vehicle here, you have production issues.

[00:11:22] [SPEAKER_00]: You can have parts issues, part shortages, you know, delivery mechanisms.

[00:11:28] [SPEAKER_00]: Look at how much trouble Fisker had when delivering their vehicles right now if Lucid hits their goal of 9,000 cars delivered this year.

[00:11:40] [SPEAKER_00]: And again, I don't know if that's delivery or production.

[00:11:42] [SPEAKER_00]: Let's say it's 9,000 cars delivered.

[00:11:45] [SPEAKER_00]: They're only delivering on average 750 cars a month.

[00:11:50] [SPEAKER_00]: That's probably not easy, but that's that's not delivering.

[00:11:56] [SPEAKER_00]: You know, however many cars, let's do the math.

[00:11:59] [SPEAKER_00]: Eighty three thousand three hundred and thirty three cars a month.

[00:12:05] [SPEAKER_00]: That's a big difference.

[00:12:07] [SPEAKER_00]: And you got to have contracts in place.

[00:12:09] [SPEAKER_00]: You have you have to have places to store these vehicles while you're delivering them.

[00:12:13] [SPEAKER_00]: If you're shipping them overseas, you have to be able to, you know, get them on boats.

[00:12:19] [SPEAKER_00]: You got to work with, you know, the ports.

[00:12:21] [SPEAKER_00]: There's a there's a lot more that's involved in, you know, delivering eighty three thousand vehicles a month than there is delivering 750 vehicles a month.

[00:12:34] [SPEAKER_00]: And I'm not even sure they're delivering 750 consistently.

[00:12:38] [SPEAKER_00]: You know, that's just an average.

[00:12:40] [SPEAKER_00]: Another issue that they're going to have to face is demand.

[00:12:43] [SPEAKER_00]: You know, Peter Rawlinson says it over and over and over again.

[00:12:46] [SPEAKER_00]: We just people need to know about our brand.

[00:12:49] [SPEAKER_00]: They need to know about Lucid.

[00:12:51] [SPEAKER_00]: What are you going to do about that?

[00:12:52] [SPEAKER_00]: You've been saying this forever.

[00:12:56] [SPEAKER_00]: I don't I don't see any meaningful advertising from Lucid, if any at all.

[00:13:01] [SPEAKER_00]: And if you're working, you know, looking at only word of mouth, you know, your cars are expensive.

[00:13:07] [SPEAKER_00]: So you have to have a friend that has, you know, some level of income that can afford a seventy thousand dollar car for that word of mouth to work.

[00:13:17] [SPEAKER_00]: And then on top of that, you have to be able to afford a seventy thousand dollar car.

[00:13:20] [SPEAKER_00]: And once the midsize vehicle comes out, you have to be able to afford a fifty thousand dollar car.

[00:13:26] [SPEAKER_00]: Not everybody is going to be able to do that.

[00:13:27] [SPEAKER_00]: And then you have competition from right now, Tesla and Rivian's, you know, midsize vehicles going to be out.

[00:13:36] [SPEAKER_00]: You have the Hyundai's and the KIA's and you have Chevy's vehicles, Nissan Aria.

[00:13:43] [SPEAKER_00]: It goes on and on and on.

[00:13:45] [SPEAKER_00]: And to be 100 percent honest with you, Rivian has done a much better job with brand awareness.

[00:13:51] [SPEAKER_00]: So hopefully Lucid will be able to figure this out.

[00:13:54] [SPEAKER_00]: But I think it's going to be a lot harder than what Peter Rawlinson is saying when it comes to selling a million vehicles a year, because they're not going to do that with the gravity and they're not going to do that with the air.

[00:14:11] [SPEAKER_00]: Oh, and another thing is the Chinese automakers, you know, in that four to five years,

[00:14:15] [SPEAKER_00]: Chinese automakers might actually get a foothold in the American market.

[00:14:21] [SPEAKER_00]: I didn't include this, but Peter Rawlinson was actually asked about the Chinese automakers later in the interview.

[00:14:28] [SPEAKER_00]: And he said that their core EV technology is not there yet in terms of the battery to the drivetrain, the efficiencies, but it will get there in time.

[00:14:37] [SPEAKER_00]: What Peter Rawlinson is actually more impressed with, with the Chinese automakers, is their user interface and the ADAS systems he thinks are very impressive.

[00:14:49] [SPEAKER_00]: And he mentioned like NIO and BYD and Xiaomi.

[00:14:53] [SPEAKER_00]: He was very complimentary of those companies.

[00:14:55] [SPEAKER_00]: Again, you know, he thinks Lucid is ahead of them as far as the core EV technology.

[00:15:00] [SPEAKER_00]: And I would say that's true, but they're definitely they definitely have sights on America and they're going to be hard to compete with because they're going to be compelling vehicles for the price.

[00:15:15] [SPEAKER_00]: I'm not saying they're going to be the best EVs out there.

[00:15:19] [SPEAKER_00]: I'm just saying when you look at what they're going to cost versus the features that are offered, they're going to be very compelling for the price.

[00:15:32] [SPEAKER_00]: And for a lot of people, they don't need luxury.

[00:15:34] [SPEAKER_00]: They need a vehicle to get you to point A to point B.

[00:16:03] [SPEAKER_01]: All right.

[00:16:07] [SPEAKER_00]: That is the most talking I'm going to do on the clips.

[00:16:10] [SPEAKER_00]: The rest of these, I just have little comments here and there, but I do think they have a lot of good information in them.

[00:16:16] [SPEAKER_00]: So let's go ahead and start with costs and potential to cut costs.

[00:16:22] [SPEAKER_02]: So again, going about the cost from the steps from air to gravity midsize, you're making enormous reductions of dual material costs.

[00:16:35] [SPEAKER_02]: Aside from volume, how do we think about that journey?

[00:16:38] [SPEAKER_02]: Let's say I mean, I don't know.

[00:16:39] [SPEAKER_02]: I'm thinking your bomb costs would be going something like from maybe $150,000 a unit thereabouts to well, obviously well below 50 if you want to be profitable.

[00:16:49] [SPEAKER_02]: How do you take $100,000 out of an air into a gravity, for example?

[00:16:54] [SPEAKER_03]: So there's the easy bit and there's the tough bit.

[00:16:58] [SPEAKER_03]: And so the easy bit is what everyone does, which is just building a car with four wheels on.

[00:17:02] [SPEAKER_03]: And I think there's almost too much emphasis put on that an EV is so different from a gasoline counterpart in that respect.

[00:17:11] [SPEAKER_03]: I mean, clearly we've got a software enabled product.

[00:17:16] [SPEAKER_03]: That's what our car is.

[00:17:18] [SPEAKER_03]: But, you know, they've got four doors and they've got four wheels and they've got four seats and whether they're going to steering wheel or not is another matter.

[00:17:25] [SPEAKER_03]: But I'll be over on steering wheel.

[00:17:27] [SPEAKER_03]: Yeah, right. Well, let's assume that timing.

[00:17:29] [SPEAKER_03]: But to start, I mean, that's ostensibly the easy bit building a car.

[00:17:33] [SPEAKER_03]: The way our secret source and our superpower is the cost of the power train because we've got a technological edge which we can convert to a commercial edge because the cost of particularly when you go to a family car,

[00:17:50] [SPEAKER_03]: the cost of the bill of materials, that's all the parts to build that car with is dominated by one thing and that's the battery pack cost.

[00:17:59] [SPEAKER_03]: Over 40 percent of that bond, bill of material costs for a family vehicle is battery pack.

[00:18:05] [SPEAKER_03]: And really there's no internal combustion engine equivalent for one single item having so much contribution.

[00:18:14] [SPEAKER_03]: And that's where our tech really plays its role that we can go further with less batteries and that means considerably less cost.

[00:18:23] [SPEAKER_03]: And that's where our tech is a cost enabler.

[00:18:26] [SPEAKER_03]: That's why we're doing that.

[00:18:27] [SPEAKER_03]: That's why we built this company to really push down the cost and attainability of EVs paradoxically whilst we're in a luxury space at this moment.

[00:18:37] [SPEAKER_02]: Yeah, I mean, again, the tech advantage is clear.

[00:18:40] [SPEAKER_02]: You're one of the most efficient EVs or in many metrics the most efficient.

[00:18:43] [SPEAKER_02]: Yeah, 4.7 miles per kilowatt hour and I think you've touched five in some of the versions.

[00:18:49] [SPEAKER_03]: Yes, pure is now we were 4.74 and we recently announced 5.0.

[00:18:55] [SPEAKER_02]: Okay, so just at a high level, you'd think that that kind of innovation catalysts are trying to like solve for battery technology that gets you there.

[00:19:04] [SPEAKER_02]: And in addition to the Aero and then the other design features that can leverage into a cost advantage because you can have smaller,

[00:19:12] [SPEAKER_02]: smaller batteries.

[00:19:15] [SPEAKER_02]: And would that be really small?

[00:19:16] [SPEAKER_02]: So then are we then going to then see the number of kilowatts in the vehicle reduced?

[00:19:22] [SPEAKER_03]: Not only are we going to, we are already because our entry level, the one that's super efficient with five miles per kilowatt hour, the air pure EV will drive.

[00:19:32] [SPEAKER_03]: It's 410.

[00:19:33] [SPEAKER_03]: This is in production today for 20 miles range.

[00:19:36] [SPEAKER_03]: So it's got more range than any competitor and it's doing that with an 84 kilowatt hour pack, which is very, very small for the cluster vehicle it's in.

[00:19:46] [SPEAKER_03]: Take the Cedis Bend, the EQS, it's 108 kilowatt hours, much bigger and significantly less range.

[00:19:54] [SPEAKER_02]: So you think you can have a cheaper battery than a mile away?

[00:19:57] [SPEAKER_03]: Oh yes.

[00:19:57] [SPEAKER_03]: Yeah.

[00:19:58] [SPEAKER_03]: So I mean, my view of the car of the future is with a more mature infrastructure, the charging cell chemistry, which is more accommodating in terms of charge rate and charge cycle time.

[00:20:11] [SPEAKER_03]: You can see if we could get to the holy grail of say six miles per kilowatt hour, you could have a 240 mile range car with just a 40 kilowatt hour pack.

[00:20:22] [SPEAKER_03]: Just a 40 on board six and gets you 240.

[00:20:26] [SPEAKER_03]: And then that's a tiny thing.

[00:20:28] [SPEAKER_03]: And that really opens up a whole raft of opportunities for building an affordable car.

[00:20:33] [SPEAKER_03]: Just the size of that thing that would fit underneath the front seats, much lighter, you wouldn't need to be brakes or suspension links could be smaller.

[00:20:43] [SPEAKER_03]: Everything gets more.

[00:20:44] [SPEAKER_03]: EVs are way too heavy.

[00:20:46] [SPEAKER_02]: EVs are way too heavy right now, right?

[00:20:48] [SPEAKER_02]: You're going to look back and.

[00:20:48] [SPEAKER_02]: Oh that's the problem, yes.

[00:20:49] [SPEAKER_02]: Absolutely.

[00:20:50] [SPEAKER_02]: Yeah, it pains me.

[00:20:51] [SPEAKER_02]: Yeah, especially when you're racing back in the pedigree with Lotus and stuff.

[00:20:56] [SPEAKER_02]: Anyone driven a Lotus by the way?

[00:20:58] [SPEAKER_02]: Do you own a Lotus right now?

[00:20:59] [SPEAKER_02]: Yes I do.

[00:21:00] [SPEAKER_02]: They're pretty fun.

[00:21:01] [SPEAKER_02]: I've had one until I was 21.

[00:21:02] [SPEAKER_02]: Okay.

[00:21:03] [SPEAKER_02]: You're a fan.

[00:21:04] [SPEAKER_02]: That's awesome.

[00:21:05] [SPEAKER_02]: You're living the dream.

[00:21:06] [SPEAKER_00]: I do think it's very neat that Peter Rawlinson has had the same car since he was 21.

[00:21:10] [SPEAKER_00]: I do not have that same attachment to my vehicles, but I know a lot of my friends who do.

[00:21:16] [SPEAKER_00]: Like my friend Eddie has the same pickup truck that he bought when he was in high school and now he's 45, 46 years old.

[00:21:23] [SPEAKER_00]: And he loves that truck.

[00:21:25] [SPEAKER_00]: And I think that's cool when people have those attachments and they put a lot of love and care into those vehicles.

[00:21:32] [SPEAKER_00]: In terms of cost, we all know the battery pack in an EV is 40% or higher.

[00:21:39] [SPEAKER_00]: The cost of the actual car.

[00:21:42] [SPEAKER_00]: Lucid does have a lot of technology that gives them a lot of efficiencies.

[00:21:46] [SPEAKER_00]: Here's something I didn't know though, that the Lucid Air Pure can go 400 miles of range, has 400 miles of range on an 84 kilowatt hour battery pack.

[00:21:56] [SPEAKER_00]: That is very impressive.

[00:21:59] [SPEAKER_00]: And by the way, that's if you have the 19 inch aero range stealth wheels that they sell.

[00:22:05] [SPEAKER_00]: If you have the 20 inch wheels, you're getting 372 miles range down from 420.

[00:22:11] [SPEAKER_00]: So the next question has to do with how much capital Lucid has on hand, but it kind of turns into a bit of a voltage discussion.

[00:22:21] [SPEAKER_00]: So let's go ahead and listen to that.

[00:22:24] [SPEAKER_02]: On a capital needs, remind us your liquidity and cap runway.

[00:22:30] [SPEAKER_03]: Yeah.

[00:22:30] [SPEAKER_03]: Yeah.

[00:22:31] [SPEAKER_03]: Well, we have sufficient cash runway to see us through into the fourth quarter of 2025 as we say it.

[00:22:42] [SPEAKER_03]: We are at a capital intensive stage of growing the business.

[00:22:46] [SPEAKER_03]: We're making long term investments for the future.

[00:22:50] [SPEAKER_03]: And I've been very transparent.

[00:22:51] [SPEAKER_03]: We're going to require some extra capitalization and we'll do so at appropriate entrepreneurial moments.

[00:23:01] [SPEAKER_03]: But I mean, you look at the investments we're making, you've seen the factory in Arizona state of the art.

[00:23:06] [SPEAKER_03]: We've got up to 90,000 a unit capacity.

[00:23:09] [SPEAKER_02]: We've run a lot of the capacity.

[00:23:10] [SPEAKER_02]: I mean that is in.

[00:23:12] [SPEAKER_03]: Just look at the look at stamping.

[00:23:15] [SPEAKER_03]: This last year, we've been paying for trucks, bringing stampings in.

[00:23:18] [SPEAKER_03]: We've been paying for scrap and we've been paying to build that damn thing.

[00:23:22] [SPEAKER_03]: All those three costs now go as we go into 2025.

[00:23:26] [SPEAKER_03]: We're going to build it and make everything in house.

[00:23:30] [SPEAKER_03]: And so also we're building out the factory in Saudi Arabia.

[00:23:33] [SPEAKER_03]: Then we're we've investing in continuous improvement on air.

[00:23:37] [SPEAKER_03]: Big software upgrade came just on Monday, which was very well received.

[00:23:41] [SPEAKER_03]: We're going to be really known as a software focused company, as a tech company with a software defined vehicle.

[00:23:49] [SPEAKER_03]: We've got an Ethernet architecture.

[00:23:51] [SPEAKER_03]: One of the very first to put that in.

[00:23:53] [SPEAKER_03]: We've had that in from the start.

[00:23:55] [SPEAKER_03]: Others have only recently got that got accolades.

[00:23:58] [SPEAKER_03]: But actually we were there originally with a data superhighway and with great over the air capability.

[00:24:05] [SPEAKER_03]: We're also invested so much in the tooling and launch now.

[00:24:08] [SPEAKER_03]: Gravity.

[00:24:09] [SPEAKER_03]: We've also got a huge team effort running right now, design and engineering of the midsize and half is yeah.

[00:24:18] [SPEAKER_03]: And half power train is on midsize now because we've announced the Atlas Power Train program.

[00:24:23] [SPEAKER_03]: So these represent five different areas of significant capital burn.

[00:24:32] [SPEAKER_03]: And this is all a long term strategy that's putting us in great stead for the future.

[00:24:37] [SPEAKER_02]: And midsize also 900 north of 900 volts.

[00:24:41] [SPEAKER_02]: We haven't disclosed that yet, but I think that it's inevitable.

[00:24:44] [SPEAKER_02]: It's going to be a very high voltage.

[00:24:46] [SPEAKER_03]: Yeah. OK.

[00:24:47] [SPEAKER_03]: The right voltage is high.

[00:24:48] [SPEAKER_02]: OK. But the way you answer that is maybe not 900.

[00:24:52] [SPEAKER_02]: There might not be.

[00:24:54] [SPEAKER_02]: And is that for cost reasons or just relative to the performance expectations?

[00:24:57] [SPEAKER_02]: It's going to be a multi-dimensional decision.

[00:25:00] [SPEAKER_03]: I mean, for example, Sapphire and GT run at 924.

[00:25:06] [SPEAKER_03]: The touring runs at 756 volts today and our Pure runs at 672 volts.

[00:25:14] [SPEAKER_03]: So we have a range of between they're not all over 900 volts.

[00:25:18] [SPEAKER_03]: OK. And for a whole range of quite deep technical reasons for that.

[00:25:23] [SPEAKER_02]: And I get all else equal.

[00:25:24] [SPEAKER_02]: If you had one vehicle on it, maybe this is an impossible question.

[00:25:26] [SPEAKER_02]: Forgive me if it's an easy one.

[00:25:27] [SPEAKER_02]: But if you had a car, a had a 924 volts car, B had 500 volts.

[00:25:34] [SPEAKER_02]: What is the cost differential? How significant is that?

[00:25:38] [SPEAKER_02]: Are we talking single digit thousands?

[00:25:40] [SPEAKER_02]: Are we talking something close to 10,000?

[00:25:42] [SPEAKER_02]: I didn't know.

[00:25:43] [SPEAKER_03]: Generally, if you've got high voltage, you can have less metal, less copper because you've got less current.

[00:25:50] [SPEAKER_03]: You trade voltage for current, double the volts, half the current.

[00:25:53] [SPEAKER_03]: And it's the currents you need the metal for.

[00:25:56] [SPEAKER_03]: So you can actually reduce costs.

[00:25:58] [SPEAKER_03]: It's just like having a 48 volt architecture.

[00:26:01] [SPEAKER_03]: You have less copper in your low voltage trade off.

[00:26:04] [SPEAKER_03]: But that's right.

[00:26:06] [SPEAKER_03]: But really where it matters is to have the high voltage in your high voltage system, not have your high voltage in your low voltage system.

[00:26:14] [SPEAKER_03]: And that's what we've gone for.

[00:26:16] [SPEAKER_03]: We've got 12 volt low voltage, but 900 on a high voltage, which makes more sense.

[00:26:21] [SPEAKER_00]: In terms of the capital, like how much money they're going to need, it is unlikely that Lucid is going to run out of money because they have the Saudi Public Investment Fund.

[00:26:33] [SPEAKER_00]: And they have invested through a bunch of different layers of that investment fund into Lucid.

[00:26:41] [SPEAKER_00]: So it is unlikely they're going to run out of money.

[00:26:43] [SPEAKER_00]: More than likely what will happen is if Lucid cannot turn a profit, the Saudi Public Investment Fund will just buy the company and run themselves.

[00:26:56] [SPEAKER_00]: That's just they have too much money invested at this point.

[00:27:00] [SPEAKER_00]: They own a significant portion of Lucid.

[00:27:05] [SPEAKER_00]: In terms of the discussion on voltage, I thought this was really interesting.

[00:27:09] [SPEAKER_00]: I just assumed that all of their Lucid errors were the same voltage, but it was a good chat.

[00:27:16] [SPEAKER_00]: Good chat on that.

[00:27:18] [SPEAKER_00]: Now, since we're talking about the Public Investment Fund, there's a question about challenges.

[00:27:25] [SPEAKER_00]: What are the challenges of building cars in Saudi Arabia?

[00:27:29] [SPEAKER_00]: And I also thought this was an interesting answer.

[00:27:32] [SPEAKER_02]: So beyond money, how else has PIF helped the strategic position of the company in addition to the Aston?

[00:27:44] [SPEAKER_03]: Oh, hugely.

[00:27:46] [SPEAKER_03]: I mean, they've added a sense of stability around us that we're here to stay.

[00:27:52] [SPEAKER_03]: There's a huge credibility.

[00:27:55] [SPEAKER_03]: They placed an order for 50,000 vehicles up to 100,000 vehicles through Saudi government.

[00:28:02] [SPEAKER_03]: They opened doors.

[00:28:03] [SPEAKER_03]: They enabled a three billion creative package incentive package for us.

[00:28:08] [SPEAKER_03]: It made sense for us as a business to undertake the first car plant there in Saudi Arabia.

[00:28:19] [SPEAKER_03]: And we're long term partners here, which really transcends a normal, mere financial...

[00:28:27] [SPEAKER_02]: Now you're part of their 2030 vision.

[00:28:30] [SPEAKER_03]: Absolutely.

[00:28:31] [SPEAKER_03]: We're a cornerstone of realizing their bold vision, which is a beacon of light for the world actually,

[00:28:38] [SPEAKER_03]: for the quintessential fossil fuel economy to have the foresight to transition to a solar electric type of economy,

[00:28:51] [SPEAKER_03]: I think is the right way to go.

[00:28:53] [SPEAKER_03]: I really do.

[00:28:55] [SPEAKER_03]: And that's what's nice about this because we're mutually incentivized for success.

[00:29:01] [SPEAKER_02]: But making cars in Saudi, having a Saudi partner is one thing.

[00:29:06] [SPEAKER_02]: Making cars in Saudi is another.

[00:29:09] [SPEAKER_02]: You assemble them and you're increasing the local content over time.

[00:29:14] [SPEAKER_02]: But there's not really the developed supply chain.

[00:29:19] [SPEAKER_02]: Maybe I'm wrong, but tell me, that takes time.

[00:29:22] [SPEAKER_02]: So if you're going 150,000 units in the factory, the full blown out factory,

[00:29:29] [SPEAKER_02]: what would that local content be?

[00:29:31] [SPEAKER_02]: How would you describe it versus a normal...

[00:29:33] [SPEAKER_02]: To the extent there's nothing as a normal plant in Casa Grande or in Europe or something like that?

[00:29:39] [SPEAKER_03]: Well, ultimately it's a chicken and egg situation.

[00:29:40] [SPEAKER_03]: What happens first is the car plants or the supply base.

[00:29:43] [SPEAKER_03]: You can't have one without the other.

[00:29:45] [SPEAKER_03]: You have to start somewhere.

[00:29:47] [SPEAKER_03]: But remember, right now we haven't got a lot of stuff that's localized in Arizona.

[00:29:53] [SPEAKER_03]: Sure, when you're in Mexico, we've got quite a number of suppliers there.

[00:29:56] [SPEAKER_02]: You're quite close to Mexico.

[00:29:57] [SPEAKER_03]: And that's handy.

[00:29:57] [SPEAKER_03]: But if you're looking at getting cells, say, from the Far East,

[00:30:02] [SPEAKER_03]: getting them to the shores of the Red Sea to a deep water harbor,

[00:30:06] [SPEAKER_03]: it's probably easier getting them inland Arizona realistically.

[00:30:11] [SPEAKER_03]: So where we are in Saudi Arabia is in the King Abdullah Economic Center.

[00:30:17] [SPEAKER_03]: And that's just North of Jeddah, really on the banks of the Red Sea.

[00:30:20] [SPEAKER_03]: So you're right alongside a major world trade artery there.

[00:30:24] [SPEAKER_02]: How do you get world-class automotive talent to live there?

[00:30:29] [SPEAKER_03]: It's all about making the environment really attractive.

[00:30:36] [SPEAKER_03]: And you know what, we've got great local talent there building the cars with great pride.

[00:30:43] [SPEAKER_03]: And there are female workers working alongside their male colleagues there in Saudi Arabia.

[00:30:48] [SPEAKER_03]: There's a generation that really wants to work and putting pride in their work.

[00:30:52] [SPEAKER_03]: And I'm really proud and pleased that we can be just a small catalyst for that change.

[00:31:01] [SPEAKER_00]: I don't really have anything to add to that.

[00:31:04] [SPEAKER_00]: I honestly thought this podcast wouldn't be much more than 25 minutes,

[00:31:07] [SPEAKER_00]: so we're way longer than I thought it would be.

[00:31:08] [SPEAKER_00]: So we're going to move on to the Advanced Driver Assistance System, or ADAS,

[00:31:16] [SPEAKER_00]: and software in the Lucids.

[00:31:20] [SPEAKER_02]: Again, a lot of the tech that you put on display was around the movement of electricity in the car

[00:31:25] [SPEAKER_02]: and then the kinetic and electromagnetic forces, motor, battery.

[00:31:31] [SPEAKER_02]: It's very impressive.

[00:31:34] [SPEAKER_02]: You're trying to emphasize the software,

[00:31:36] [SPEAKER_02]: and you do have great software and software-defined architecture.

[00:31:39] [SPEAKER_02]: I don't think it's appreciated much.

[00:31:41] [SPEAKER_02]: And perhaps, I think some of it was you said there was some self-inflicted execution around it.

[00:31:47] [SPEAKER_02]: So tell us then, if you're going to be in the EV business,

[00:31:53] [SPEAKER_02]: it probably means you're going to have to have an AV strategy,

[00:31:56] [SPEAKER_02]: maybe not a full robotact.

[00:31:57] [SPEAKER_02]: Let's keep the steering wheel on for now.

[00:31:59] [SPEAKER_03]: Please, please.

[00:32:00] [SPEAKER_03]: We're talking to purists here.

[00:32:02] [SPEAKER_02]: But like you're going to have, it's going to become table stakes

[00:32:04] [SPEAKER_02]: to have a level two plus system at some point probably.

[00:32:07] [SPEAKER_02]: We have to debate the capabilities.

[00:32:10] [SPEAKER_02]: So what is the strategy there?

[00:32:11] [SPEAKER_02]: How much do you need to vertically integrate versus work with partners?

[00:32:15] [SPEAKER_02]: Yeah, well, as I currently reference.

[00:32:18] [SPEAKER_03]: The sad thing is we're not really known for our software,

[00:32:20] [SPEAKER_03]: which is really not representative of what we're about.

[00:32:26] [SPEAKER_03]: We've got world-class software in terms of our battery management software.

[00:32:30] [SPEAKER_03]: We wouldn't be able to go over 500 miles.

[00:32:31] [SPEAKER_03]: We're the only company that gets over 500 miles range here.

[00:32:35] [SPEAKER_03]: We still got 100 miles more range over everyone else today

[00:32:41] [SPEAKER_03]: with a car that we bought out three years ago.

[00:32:43] [SPEAKER_03]: That's how good battery software is, our motor control software.

[00:32:48] [SPEAKER_03]: We've got the Sapphire, the performance of that car,

[00:32:51] [SPEAKER_03]: is very much a function of its traction control, getting the power down.

[00:32:57] [SPEAKER_03]: Power is nothing without control.

[00:32:59] [SPEAKER_03]: And 1,000 times a second, that power is modulated to the tires

[00:33:05] [SPEAKER_03]: all with our own in-house software.

[00:33:08] [SPEAKER_03]: And we're making our own HUD, augmented reality HUD.

[00:33:13] [SPEAKER_03]: And that's developed entirely in-house, and that's going into the gravity,

[00:33:16] [SPEAKER_03]: the most advanced heads-up display in the world.

[00:33:20] [SPEAKER_03]: That was in-house development from the team

[00:33:22] [SPEAKER_03]: that created the most advanced lighting

[00:33:24] [SPEAKER_03]: and all the technology and the software for that in-house

[00:33:28] [SPEAKER_03]: that you see in Lucid Air.

[00:33:30] [SPEAKER_03]: So we've got incredible world-class software that you don't see,

[00:33:35] [SPEAKER_03]: that people think, oh, that's the batteries that gets you 500 miles.

[00:33:39] [SPEAKER_03]: Believe you me, it's a lot of that software,

[00:33:41] [SPEAKER_03]: the motor control, the blending of the response of the pedal.

[00:33:46] [SPEAKER_03]: It's phenomenal, and how the regen comes on that is so seamless

[00:33:50] [SPEAKER_03]: and so natural, intuitive, and that's all done in-house.

[00:33:54] [SPEAKER_03]: What we haven't got great and not well known for,

[00:33:56] [SPEAKER_03]: and it's a mere culprit, we need to do better.

[00:34:00] [SPEAKER_03]: We need a better infotainment system and user experience.

[00:34:04] [SPEAKER_03]: And actually with the ADAS, it's not just so much the ADAS,

[00:34:08] [SPEAKER_03]: it's the way the ADAS is graphically represented.

[00:34:11] [SPEAKER_02]: How it involves the...I say I have a Tesla,

[00:34:14] [SPEAKER_02]: FSD has gotten better, but I've gotten better faster than I think it has.

[00:34:18] [SPEAKER_02]: I know when not to use it, and part of it is

[00:34:21] [SPEAKER_02]: understanding the information it's giving.

[00:34:23] [SPEAKER_03]: Yeah, yeah, so exactly that.

[00:34:24] [SPEAKER_03]: So I've made sweeping changes to the team.

[00:34:27] [SPEAKER_03]: I've empowered people who've been with me for many, many years.

[00:34:30] [SPEAKER_03]: I've personally taken a lead on this.

[00:34:32] [SPEAKER_03]: And words are cheap.

[00:34:33] [SPEAKER_03]: So although we've got a roadmap,

[00:34:34] [SPEAKER_03]: and I showed the roadmap, Adam, to you and others on Tuesday,

[00:34:39] [SPEAKER_03]: I was adamant that we got one of these iterations over the air out.

[00:34:44] [SPEAKER_03]: The day before we did that, we got 2.4.0,

[00:34:48] [SPEAKER_03]: the odds release of software, and that was very well received.

[00:34:51] [SPEAKER_03]: And it's seen as a major step up.

[00:34:53] [SPEAKER_03]: And we're on that roadmap now.

[00:34:55] [SPEAKER_03]: Next six to eight months, you're going to see us change

[00:34:58] [SPEAKER_03]: and really be known as a software-defined vehicle,

[00:35:01] [SPEAKER_03]: a software-defined tech company.

[00:35:04] [SPEAKER_03]: And the way that ADAS system is going to be integrated,

[00:35:08] [SPEAKER_03]: we're going to have a level two hands-off system.

[00:35:11] [SPEAKER_03]: I'm promising that by the end of this year.

[00:35:14] [SPEAKER_03]: And it's just going to be relentless feature release upon feature release.

[00:35:18] [SPEAKER_03]: Just in-house?

[00:35:19] [SPEAKER_03]: Absolutely, extensively in-house.

[00:35:22] [SPEAKER_03]: We're moving.

[00:35:23] [SPEAKER_03]: Even our OTA delivery now is fully in-house.

[00:35:26] [SPEAKER_03]: So systems that were co-developed are transitioning fully in-house.

[00:35:35] [SPEAKER_03]: And our lane tracking, lane centering, the lane change control,

[00:35:42] [SPEAKER_03]: that's in-house.

[00:35:43] [SPEAKER_03]: And it's going to be, we're transitioning to,

[00:35:46] [SPEAKER_03]: I wouldn't say fully in-house, but 99% of the division.

[00:35:49] [SPEAKER_02]: Does this materially change your capital intensity of the business?

[00:35:53] [SPEAKER_02]: Some of your competitors are spending billions of dollars on computers.

[00:35:56] [SPEAKER_03]: No, I've got a great team.

[00:35:57] [SPEAKER_03]: It's just now we've made leadership changes.

[00:36:00] [SPEAKER_03]: They're totally motivated and they're on it.

[00:36:02] [SPEAKER_03]: And they're determined to be world-class

[00:36:04] [SPEAKER_03]: and they're working like crazy on being that.

[00:36:07] [SPEAKER_02]: You said power is nothing without control.

[00:36:09] [SPEAKER_03]: Yes.

[00:36:10] [SPEAKER_02]: Sounds a lot sexier the way you say it than my accent.

[00:36:13] [SPEAKER_02]: I don't know.

[00:36:14] [SPEAKER_02]: It's good.

[00:36:15] [SPEAKER_02]: If I went to my wife and said power is nothing without control,

[00:36:17] [SPEAKER_02]: she'd be like, get the hell out of the kitchen.

[00:36:19] [SPEAKER_00]: What a weird way to end that discussion.

[00:36:23] [SPEAKER_00]: And I left it in there because it was weird,

[00:36:26] [SPEAKER_00]: but I'm going to go tell that to my wife and we'll see what happens.

[00:36:31] [SPEAKER_00]: I'm not, I'm not going to do that.

[00:36:33] [SPEAKER_00]: Not because I'm smart, but because I'm just not that dumb.

[00:36:38] [SPEAKER_00]: Moving on.

[00:36:39] [SPEAKER_00]: I haven't really heard anyone say anything negative

[00:36:42] [SPEAKER_00]: in terms of lucid software.

[00:36:45] [SPEAKER_00]: Like everybody has their bugaboos about stuff,

[00:36:48] [SPEAKER_00]: but I haven't, you know, heard a lot of complaints about it.

[00:36:51] [SPEAKER_00]: There was maybe some early on, but recently I haven't heard a lot of complaints about it,

[00:36:56] [SPEAKER_00]: especially with their big update that they just released a couple of weeks ago.

[00:37:00] [SPEAKER_00]: A lot of praise actually.

[00:37:03] [SPEAKER_00]: But prior to that update, if someone would have said,

[00:37:06] [SPEAKER_00]: how is lucid software in their car?

[00:37:08] [SPEAKER_00]: I would have said, it's probably okay.

[00:37:10] [SPEAKER_00]: It's not going to win any awards,

[00:37:12] [SPEAKER_00]: but it's not going to disappoint you either.

[00:37:15] [SPEAKER_00]: It's meh.

[00:37:16] [SPEAKER_00]: Now when it comes to their ADAS features,

[00:37:20] [SPEAKER_00]: there's a mixed bag on this and they'll get better.

[00:37:23] [SPEAKER_00]: Like I try not to hit anybody too hard on the advanced driverless autonomous systems,

[00:37:30] [SPEAKER_00]: on the full self-driving, whatever you want to call it,

[00:37:32] [SPEAKER_00]: level one, level two, level three driving.

[00:37:34] [SPEAKER_00]: I don't want to hit anybody too hard on this because it is hard to do.

[00:37:38] [SPEAKER_00]: And the reason why I hit Tesla so hard on it is because

[00:37:42] [SPEAKER_00]: Elon constantly says that it's around the corner and it's not.

[00:37:46] [SPEAKER_00]: And he constantly says that this hardware today, in 2016,

[00:37:52] [SPEAKER_00]: hardware two will be able to feature level four, level five autonomy

[00:37:56] [SPEAKER_00]: and it won't be able to.

[00:37:58] [SPEAKER_00]: So that's why Tesla gets hit harder than other companies when it comes to this.

[00:38:02] [SPEAKER_00]: And by the way, if there was a company out there claiming their system

[00:38:05] [SPEAKER_00]: could do something that it couldn't,

[00:38:07] [SPEAKER_00]: I'd be hitting them just as hard as Tesla.

[00:38:09] [SPEAKER_00]: I'm just not picking on Tesla in this case.

[00:38:12] [SPEAKER_00]: But I'm interested to see what happens at the end of 2024.

[00:38:20] [SPEAKER_00]: Will, one, Lucid be able to deliver a hands-free ADAS experience?

[00:38:26] [SPEAKER_00]: And two, will it be good?

[00:38:29] [SPEAKER_00]: I'm curious because I will say as much grief as I give Tesla,

[00:38:34] [SPEAKER_00]: autopilot is pretty darn good on the freeway.

[00:38:37] [SPEAKER_00]: Like I use autopilot pretty much my entire trip on the freeway.

[00:38:43] [SPEAKER_00]: Now it's not doing automatic lane changes,

[00:38:46] [SPEAKER_00]: it's not getting off the freeway or any of that other stuff.

[00:38:48] [SPEAKER_00]: I have to do all of that.

[00:38:50] [SPEAKER_00]: But if there's not a lot of people on the road, I will use autopilot.

[00:38:57] [SPEAKER_00]: If there's a lot of people on the road, I don't typically use it.

[00:39:00] [SPEAKER_00]: And that's probably a me thing more than it is a problem with the software.

[00:39:05] [SPEAKER_00]: All right. That is it for this week.

[00:39:08] [SPEAKER_00]: I hope you all enjoyed the show and I hope you found it informational.

[00:39:12] [SPEAKER_00]: If you want to email me, you can.

[00:39:14] [SPEAKER_00]: It's bode, B-O-D-I-E at 918digital.com.

[00:39:17] [SPEAKER_00]: You can also find me on x at 918digital.

[00:39:22] [SPEAKER_00]: And yeah.

[00:39:23] [SPEAKER_00]: Oh, and the show is actually going to be released on time.

[00:39:27] [SPEAKER_04]: So yay.

[00:39:29] [SPEAKER_00]: All right, everybody.

[00:39:29] [SPEAKER_00]: I will talk to you on Friday.

[00:39:32] [SPEAKER_00]: Will the Friday show come out on time?

[00:39:34] [SPEAKER_00]: I have no idea, but I'm going to do my best.