RJ Scaringe

Scaringe states Q4 was the "first quarter where we've really achieved positive gross margin on a cash basis" with "$2,000 of profit per vehicle." He confirms R2 deliveries begin in "the second quarter this year." Positive cash gross margin is the critical inflection point for EV manufacturers, signaling the end of losing cash on every unit sold solely due to variable costs. The launch of the R2 platform in Q2 provides the necessary volume catalyst to amortize the heavy fixed costs ($11k depreciation/unit) and move toward GAAP profitability. LONG. The transition to unit-level cash profitability combined with the imminent launch of a mass-market vehicle (R2) de-risks the fundamental thesis significantly. High depreciation costs ($11k/unit) keep GAAP earnings negative; execution risk on the R2 production ramp; potential demand softness if premium launch pricing is rejected by the mass market.