Q4 2023 Aeva Technologies Inc Earnings Call

Participants

Andrew Fung; IR; Aeva Technologies, Inc.

Salehian Soroush; CEO; Aeva Technologies, Inc.

Saurabh Sinha; CFO; Aeva Technologies, Inc.

Colin Rusch; Analyst; Oppenheimer & Co. Inc.

Richard Shannon; Analyst; Craig-Hallum Capital Group LLC

Suji DeSilva; Analyst; ROTH Capital Partners, LLC.

Kevin Garrigan; Analyst; WestPark Capital, Inc.

Presentation

Operator

Good day. My name is Molly, and I will be your conference facilitator. I would like to welcome everyone to the Aeva Technologies Fourth Quarter and Full Year 2023 earnings conference call. (Operator Instructions) As a reminder, today's conference call is being recorded and simultaneously webcast. I would now like to turn the call over to Andrew Fung, Director of Investor Relations. Andrew, please go ahead.

Andrew Fung

Thank you, and welcome, everyone, to Aeva's fourth quarter and full year 2023 earnings conference call. Joining on the call today are Salehian Soroush, Aeva's Co-Founder and CEO; and Saurabh Sinha, Aeva's CFO. Ahead of this call, we issued our fourth quarter and full year 2023 press release and presentation, which we will refer to today and can be found on our Investor Relations website at investors dot nova.com. Please note that on this call, we will be making forward-looking statements based on current expectations and assumptions, which are subject to risks and uncertainties.
These statements reflect our views only as of today and should not be relied upon as representative of our views as of any subsequent date. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations. For further discussion of the material risks and other important factors that could affect our financial results, please refer to our filings with the SEC, including our most recent Form 10-Q and Form 10-K.
In addition, during today's call, we will discuss non-GAAP financial measures, which we believe are useful as supplemental measures of Aeva performance. These non-GAAP measures should be considered in addition to and not as a substitute for or in isolation from GAAP results. A webcast replay of this call will be available on our Company website under the Investor Relations link.
And with that, let me turn the call over to Soroush .

Salehian Soroush

Thank you, Andrew, and good afternoon everyone. 2023 was a landmark year for Aeva. We reached a number of critical milestones that we believe puts us in a strong position to continue to lead in the growing adoption of FMCW LiDAR in automotive and beyond.
I would like to highlight our key accomplishments. First, as we announced at CES, Daimler Truck selected Ava to be the exclusive supplier of long-range and ultra long-range LiDAR for their series production vehicle program as one of the world's largest commercial OEMs and a leader in deploying new technologies. Daimler Truck is very committed and well positioned to commercialize Highway Autonomy at scale. Our production agreement with Daimler Truck as a Tier 1 supplier for serious production is a massive validation of the performance. Maturity and manufacturability have a unique 40 LiDAR.
Second we also secured production agreements elsewhere such as with May mobility or Aeva, 40 LiDAR will be used to broaden the operational design domain of main vehicles and industrial. We signed our first production agreements with Micron, where we will leverage our lighter on chip technology, ability to deliver micron level precision to power knock-on high precision industrial inspection products.
Third, we announced and demonstrated Atlas, which is the world's first automotive grade for the LiDAR design for auto mass production. Atlas utilizes our latest silicon innovation, including core vision, our fourth-generation LiDAR on-chip module, which integrates all optical components onto an even smaller silicon photonics platform.
As was X1, a new powerhouse system on chip processor for signal processing and processing and software. And fourth, we exited 2023 in a strong financial position with $346 million in cash and facility. And note that Aeva has significant capital to support both our existing customers beyond their SOPs and execute on additional program wins and our pipeline.
Let's now discuss in more detail. Our recent business development. Daimler Truck series production program is a breakthrough win for Eva and a significant positive development for the industry, not only for the size of the opportunity, but also the validation of our technology and maturity from one of the largest and most reputable commercial vehicle OEMs in the world.
This is a clear indication of the industry's growing appreciation and shift towards FMCW. technology to enable even more advanced ADAS and Highway Autonomy functionality in vehicles in this multiyear production program, Eva will act as a direct Tier one to Daimler Truck supplying both long-range and ultra long range, 40 lighter This will enable highway seat autonomy for Daimler Trucks. First, production launch, starting with Freightliner's Class eight platform, which has volumes of around 100,000 vehicles annually.
We will also work closely with Tork, Daimler Trucks, independent subsidiary, developing the AV stack to integrate Aeva sensors and perception soft, the multiple number of sensors per vehicle and the level of integration results and significant content per vehicle that is multiples higher than a typical passenger vehicle program.
Together with a modest take rate that ramps over a multiyear period. We estimate a forward-looking order book of $1 billion over the estimated lifetime of the program. We are working towards our start production in 2026 to support Daimler Trucks production ramp by 2027 this win comes after multiple years of deep collaboration with Daimler Truck. As we enter the next phase, we are off to a strong start in Q1. We have already shipped many centers for Daimler Truck and torques fleet of vehicles and expect to increase product shipments over the course of this year.
I would like to now elaborate more on why Daimler Trucks selected Aeva safety reporting Highway Autonomy at significant scale is a top strategic focus for Daimler Truck and the OEMC.'s Aeva 40 radar as a key enabler because of our technology opening up some of the most challenging highway driving use cases and the manufacturability of our technology. This determination comes after in-depth evaluation of Aeva, fortified our ability to meet Daimler Trucks, stringent performance requirements over the course of multiyear collaboration.
Airbus combination of industry-leading range, instant velocity for every point and immunity to interference was instrumental in achieving a number of the OEM's challenging use cases that I viewed as critical for commercialization, for example, a highway emerge scenario where the truck needs to know what is approaching from behind it from a far distance given the amount of time it takes for the vehicle to accelerate highway speeds. Ava 40 wide are consistently offered further and faster detection and classification of critical objects than was possible before with the existing sensor set with plans to ramp to significant volumes. Daimler Truck use Aeva LiDAR on chip technology with a fiber less silicon based architecture and our manufacturing capability as key differentiators that will enable us to support their production ramp as part of the RFQ process.
Daimler Truck also conducted extensive audits of our manufacturing line, internal processes and supply chain partners to ensure they meet the strict requirements of Daimler Truck standards. We are incredibly proud to have received the highest rating category for manufacturing readiness and the confidence of DiamondRock in Aeva to act as a Tier 1 supplier for the Sears production program. This is no small feat, especially for a company at our stage and points to the maturity and the quality of our organization. I want to end this section of DiamondRock with why we are thrilled to be partnered and going to market together.
Aeva strategy continues to be partnering with leaders in their respective markets who have a shared commitment as well as the ability to scale deployments of LiDAR to mass volumes. And this strategy is starting to pay off down. The truck is incredibly well positioned as a global leader in commercial vehicles with volumes north of 500,000 units annually.
As mentioned earlier, our production program win starts for the Class eight Freightliner platform, which is the top-selling platform and its segments at around 100,000 vehicles annually and representing 40% of the class eight market share and within this, Daimler Truck has 60% share of the large US fleet buyers of class-A trucks. They're likely first adopters of autonomous trucks.
Importantly, Daimler Truck is also a leader in commercializing new technology being first to deploy Level 2 capabilities and series production in North America in 2019, they have a deep understanding of the needs of their customers and see highway autonomy as the next key strategic objective and logical step for the industry because for fleet operators, it is all about total cost of ownership and enabling hub-to-hub autonomous operations that can meaningfully improve efficiency while reducing costs as part of the path to commercialization.
Daimler Truck subsidiary toward is already deploying pilot autonomous program with leading logistics operators such as cider and CR England capture real-world insight and ensure critical requirements on that for series production as Daimler Trucks CYO. reaffirm on its earnings call last week, Highway Autonomy is a top strategic focus for the OEM. They continue to make strong progress from hardware, including sensors for the software stack, keeping them on track for serious production amortization by 2027. From there, Daimler Truck has publicly shared plans to reach significant volume scale with annual autonomy revenue contribution of $3 billion for Daimler Truck by 2030. And we look forward to supporting their ramp.
Let's now turn to Eva's growing commercial momentum. 2023 marked an inflection point as we began converting our engagements to multiple production awards in automotive and industrial the adoption of SMCW. technology is gaining traction, and we expect to continue to drive this in 2024.
Following our Daimler Truck production win, we have seen an uptick in our momentum in automotive, aligned with our strategy. Our focus is on winning large production programs with customers well positioned to commercialize at scale. We are currently engaged in multiple passenger vehicle RFQs, including with a new global top 10 passenger vehicle OEM and expect award decisions in the next six to nine months. The growing adoption of SMCW is becoming clear starting with commercial vehicles, and we expect the rest of automotive to move in the same direction.
With Daimler Trucks selection to use Aeva 40 wide are three of the top four OEMs representing the vast majority of the North America Class eight market are now implementing SMCW. for highway autonomy. This is a strong validation of the fundamental advantages of FMCW where long range instant velocity and immunity to interference can enable safe autonomous operation at highway speeds.
At AVA, we continue to progress on multiple opportunities for additional commercial vehicle programs in passenger vehicles. A growing number of industry participants are publicly pursuing FMCW for next-generation solutions based on our engagements with OEMs a number of opportunities we are seeing the most traction are with OEM's experience with LiDAR that CFMCW. as a key enabler to future proof their plans to achieve Highway Autonomy at highway speeds in the start of the year. This now includes multiple passenger vehicle OEMRQs and a new top 10 passenger vehicle yet.
We expect these programs to start being awarded in the next six to nine months. While we continue to work on additional production program wins, we are also on track to begin commercialization by the end of this year for our first industrial launch with MyCaller, we will follow this with automotive SOPs starting in 2025 and reaching scale by 2027.
Moving now to our latest product development at CES. Earlier this year, we introduced and demonstrated Atmos, which is the world's first automotive-grade. 40 LiDAR designed for automotive production we believe Atlas will unlock the industry's ability to adopt FMCW for highway speed automation at scale. And this is powered by our latest proprietary silicon innovations, including core vision, our fourth generation RAID-on-Chip module, which continues to integrate all optical components, also an even smaller amount. Compared to conventional high-performance time-of-flight LiDAR solution is completely fiberglass and leverages as silicon photonics architecture to enable automated assembly for mass manufacturability at affordable costs.
In addition, Atlas utilizes AVOX. one, our new powerful FMCW. LiDAR system on chip it seamlessly integrates data acquisition, buying cloud processing, scanning and application software. To our knowledge. This is the first in the industry and comes after multiple years of investments in our silicon development and validation as a result of these enhancements. And this is over 70% smaller and consumes a quarter of the power of the previous generation, which enables passive cooling and new OEM integration options such as behind the windshield domino drug is the first major OEM to go to production.
With that, I would now like to discuss our key goals for 2024 at a high level, our focus remains on converting our growing commercial momentum to production awards while preparing for our first SOP first, we target winning two additional production programs in 2024, we are engaged in a number of automotive RFQs for production, including with a new global top 10 passenger vehicle OEM and industrial. We also see opportunity to convert current engagements to wins with leading companies looking to leverage our unique SMCW. for the next-generation solutions.
Second, we plan to complete Atlas qualification ahead of deployments starting in 2025. This includes the final iteration on our X1 SOC and completing the validation of our MS product. Third, we plan to finalize our supply chain and complete the design of our automated and automotive qualified production line as we approach our first SOPs. And fourth, as we have demonstrated over the past years, we plan to accomplish these objectives while maintaining a strong financial position and disciplined with spend. As Saurabh will discuss next, we target maintaining OpEx similar to levels in 2023 with our strong balance sheet and strategic approach investing, we are well positioned to execute on our plan and deliver on the growing momentum around SMCW.
With that, let me turn the call over to Saurabh.

Saurabh Sinha

Thank you, Soroush, and good afternoon, everyone. Let's move to Slide 15 to review Airbus full year 2023 financial results. Revenue for the full year 2023 was $4.3 million, driven by growing ARIES to shipments. Non-GAAP operating loss for the full year 2023 was $124.1 million. We continue to be disciplined and effective in managing operating expenses, which came in slightly lower year over year and better than our 2023 annual outlook in 2023.
Gross cash used which we define as operating cash flow less capital expenditures totaled $124.9 million, Aeva ended 2023 with $346 million in cash and facility comprising $221 million of cash, cash equivalents and marketable securities and $125 million of facilities. This positions us well to support both our existing production programs beyond their SOPs and secure additional production wins. We are excited to build on our commercial momentum in 2024 with expectations to increase product sales and add new programs in line with a balanced strategy.
We will continue to prioritize large-scale production opportunities with leading players such as the multiple automotive RFQs. We are currently engaged in we also expect to remain disciplined with our spend targeting non-GAAP operating expenses, which excludes stock-based compensation and other potential nonrecurring charges to be similar to 2023. As a result our significant level of capital provides Aeva, our multiyear runway, and we expect to maintain a solid balance sheet as we continue executing on our plan.
With that, let me turn the call back to Soroush for closing remarks.

Salehian Soroush

Thank you. So Rob, I am incredibly proud of what Aeva accomplished in 2023. We successfully transition from the development phase to multiple production awards for automotive and industrial, including our first major automotive production program with one of the world's largest commercial vehicle OEMs. We're off to a strong start in 2024 with even more commercial momentum, driven by the unique performance and maturity of Ava 40 LiDAR, combined with our financial strength to win and support additional customers as OEMs start to deploy even more advanced functionality such as highway autonomy.
We expect FMCW. to play a central role to enabling the OEMs to achieve Highway Autonomy at high risk. We aim to continue to lead the growing adoption of MTW. in automotive and industrial with additional wins in the coming months. And as we execute towards our first SOP, I'd like to finish by thanking really the tremendous team at Aeva. I am excited for what we have in store for 2024 and anticipate another pivotal year for Aeva and hopefully the industry.
With that, we'll now open the lineup for questions.

Question and Answer Session

Operator

(Operator Instructions) Colin Rusch, Oppenheimer.

Colin Rusch

Thanks so much, guys. As you look at the kind of tone of these customer conversations, which seems like they've taken a fundamental shift with the Daimler agreement and you look at the comp, Pascal, you trying to scale up as a sole source or a real clear leader in FMCW. Can you talk a little bit about the strategy around licensing and enabling multiple suppliers to really allow these customers to adopt the technology and other platforms on that. That's obviously totally on a go-forward basis.

Salehian Soroush

You're going to have to answer that? Yes. So first of all, we're really excited with the momentum that we're seeing in automotive, especially with an uptick increasing since our win with Daimler Truck as we started the year strong as I mentioned on the call and majority of the commercial vehicle OEMs are already moving now to SMTW. and the unmet need that for their highly autonomy.
That's three of the top four have publicly talked about that. That represents over 85% already of the market share, right? So that's we've been talking about this for some time and now this is starting to actually show up in the market and also our strategy of really aligning with large customers focused on winning additional programs of leaders in the markets especially folks that have the ability to scale to significant volumes we think is starting to pay off.
We're also expecting this kind of similar trend to happen in passenger vehicle side right. So as you mentioned, I put on the call that we are currently engaged in multiple passenger RFQs, including with this new global top-10 passenger OEM. And we're seeing OEMs increasingly view FMCW. as really a key enabler to future proof the plans, especially folks that have had some experience with LiDAR initially bringing that forward now really going at how they tackle the next phase at mass scale to achieve that Highway Autonomy at highway speeds.
So we're in the current market, we're seeing an increase and that interest, we are fully intended to capitalize on that. And we have the resources we have the team, we have the financial backing and strength of the financial balance sheet to support that. And as I mentioned, we're expecting a number of these award decisions already happened soon, right? So I think this Daimler Truck, Lynn, has really allowed us to come onto the field with some of being a Tier one supplier. And these decisions happening in the next six to nine months is kind of what we start I expected to see. So but generally, the focus for us this year. As I mentioned on the call, we have already announced and demonstrated Atlas at CES. This is our final architecture with final production, and it has our our final chip are a products with the core vision, which is the Fortune by our chip module. It has the world's first FMC by SMCW. light.
Our SOC, right?
So that is what's allowing us to achieve to mass scale and having the right and the power side of that envelope. So we're making progress across fronts and obviously, as we progress throughout the year and working towards the manufacturing line. Again, all that very blocked will also share more as.

Colin Rusch

Thanks so much. And then just a follow-up. Can you talk about how you're de-risking the cost structure and manufacturing as you move through this process and this year with smaller volumes, but just making sure that you get into higher volume production. There is a period of time where you end up with a lesser amount of scrap on and some sort of heavy lifting on the costs.

Salehian Soroush

Yes, sure. I'd be happy to. So first of all, what you know, we started with ARIES to a couple of years ago, and we have shipped significant already volumes of those products with ARIES to be already used a bomb for the first time, we have reduced it by over 30% already in terms of the bond costs, add that that's when we have taken that last remaining step in terms of significant cost reductions that really sets us up on the right architecture to get us to where we need to go from a target sample for our SOPs.
And as I mentioned, I see as we already demonstrate Atlas, which define architecture with our final chip solutions. And this is the result of multiple years of efforts, significant amounts of investments and multiple iterations of that of the silicon chip, both on the optical side, the core vision as well as now the SOC, right? So these are things that you can shortcut. It's taken us because now there's seven plus years now to get here.
So from here on the other system design is fixed. And we have now this the next 12 to 18 months or so, where we are focused on the qualification of the Atlas product, getting that ready for the first SOPs. And as I mentioned on the call, we start in automotive next year with SOP and then from there with Daimler Truck in '26 and reaching scale by '27. So really the work here that we have in front of us is beyond the qualification I mentioned. It's also bringing up the manufacturing line, getting that design ready for automated assembly line for automotive, qualified mass production. And we have the support of our strong team that's been doing this already for the past couple of years. So we feel pretty good about this. We have and a clear plan that we are executing on on the commentary.

Operator

Richard Shannon, Craig-Hallum.

Richard Shannon

Thanks, guys, for taking my question here. Maybe I'll ask a much simpler one, just kind of a tactical one here. Looking at 2024, you gave us a sense of what to think about for OpEx here but I'd love to get your sense of thinking about sales here. It seems like we're not going to see some leaps and bounds here with no kind of probably starting late this year doesn't sound like much of anything from a mobility. We've consensus estimates look at look like around $15 million for the year compared to $4 million last year. I wonder if you could just give us a sense of what you're thinking. And just in broad brush strokes here about what 2024 sales look like.

Saurabh Sinha

I've said this is Saurabh. Yes. So on the revenue front, we are seeing strong momentum in both industrial and automotive. We are seeing increasing number of shipments in '24, and we expect full year revenue in '24 to grow by at least 100%. On top of that, we are seeing increasing number of opportunities to expand from there. That being said, our focus continues to be on executing on large production opportunities in automotive and other applications. As we discussed earlier on the call, we are in multiple RFQs, including the top 10 passenger car OEM and and we will continue to work towards that.

Richard Shannon

Yes. Okay. And that detail my follow-on question here is just hitting on and I kind of the general industrial opportunity here, you said you're going to be ramping up or starting to ramp late this year. And I just want to get a general sense of how we see that ramp with Eikon over time here. I assume this is going to take many years to get to a perceived kind of peak level here. I have no idea what you're thinking about the way you can characterize kind of that ramp and eventual peak there would be very helpful.
Thank you.

Salehian Soroush

Sure. Yes, happy to do zero. So Eikon, as you have mentioned in the past is a multiyear program on the production side through 2028. And the agreement includes minimum volume commitments and obviously a key differentiation with the industrial side. It converts automotive is that it has strong, it speeds that are significantly higher here as But order of magnitude higher than a typical auto program. Right.
So on the kind of the volume side, some knock-on has a significant share in, I think the double digits of the metrology market. So that's something that they have publicly talked about. There is in the metrology market volumes obviously is not in the same scale as mass production, automotive, but it's in the multiple thousands of units. So that combined with a speed, this is a considerable opportunity for us that we see are scaling up.
And just to be clear, obviously, we expect a revenue ramp up through '25 and then expand from there. I think already by I would say '25 or a year to 18 months after we expect to reach peak periods.
But to add to that, this is just the first program that we're doing the night on, right, which is focused on metrology for auto applications and auto manufacturing, aerospace, others. But also we see enough opportunities in industrial that we are working on. That really has the potential to grow this industrial business significantly. So some of it beyond just simple assembly for automated automated assembly, also precision assembly. There are other applications as we able to talk more about we will share which we see as our opportunity to expand.

Operator

Suji Desilva, ROTH Capital Partners.

Suji DeSilva

I saw Rob, congratulations on the progress here. And so VM passenger opportunities, including the new global top 10. I'm just curious, you know, how far along those guys are if you could contrast that with maybe Daimler, I think you talked about cal '23 working on the software integration through the year. If that's happening already with the guys in the pipeline, if it's already happened and how much different that effort is when you go from trucking across to passenger?
Yes.

Salehian Soroush

Thanks for the question, Suji. So first of all, obviously, a lot of the work that we have done on the on the core platform side that led us to the win with Daimler Truck is what we are leveraging for additional opportunities and programs that we are engaged with. And that's also part of the reason why we see a faster progress on our programs. We're seeing increased momentum in the space now we see a number of passenger programs that are looking to future-proof their stack, which means how they get the next level of functionality on the highway with Highway Autonomy speeds working and you bet that we are and we are leveraging all that all the effort that we have done already that led us to winning number truck to come to also make progress on those programs.
So and we have been engaged with this OEM for some time already, and we are going through the RFQ RFQ process. And this is a significant OEM, one of the largest and best in the world and with global scale. And we see this opportunity, something that is considerable quite significant, a decent size similar to Daimler Truck is now more with production timing that is around the same timeframe. So I think a pretty exciting opportunity for us. And obviously, we've launched a number of activities, quite intensity that's increasing over time.
So on as we as we go through this process and we can share more with us and we'll do so. But we're pretty excited about it. It's not the only passenger programs are working on. We are engaged on multiple RFQs. And to be clear, the feedback that we're getting from the OEMs is that this is no longer a matter of if there will be transition to SMCW. to enable next-generation technologies. But actually, as a matter of when and this is really exciting for us. And I think with some of the time lines of OEMs shifting also and towards a timing that actually aligns further and better with our time line, the '26 SOP And further, we see this as quite positive for us.
And so folks are really looking to make sure that and they have that right next-gen technology as they scale to mass volumes for the Highway Autonomy application. And the opening of the important thing is the feedback that we're seeing is this is not something that's being decided in years from now. It's in the months from now or six , nine months from now, we expect some of these issues start to happen and this appears to be similar timeframes that we see also with Daimler Trucks. So I'm quite encouraged.

Suji DeSilva

Okay. And then my follow-up is about the same RF business in the pipeline. You talked about it being similar or larger than maybe the time opportunity can you put some color around these? Are these programs you're targeting if their mainstream or if their premium initially for passenger is at L2 plus L. three L. four where you intercepting them and or the EV hybrid. Any color there in terms of where you're drawing kind of attention from the OEMs would be helpful.

Salehian Soroush

Yes, absolutely. I think in this next phase to focus on the OEMs for mass scale, which is going to be across platforms. And that's really becoming more and more table stakes to provide kind of autonomy function and the highway highway almost more or less similar to what I see bill was in. So that's that's overseeing this is not something that's like a as super high level five that is going to take many years to come and it's a super spike, a small portion. It is, you know what I'm talking about, a level that is with the Highway Autonomy.
So that's that's how we how we see it as a feedback that and we're getting it is completely power train agnostic, so both combustion engine and EV.s. So it's as I mentioned, and this is the technology to provide safer highway speed. Automation is becoming more increasingly viewed as table stakes for many of the premium OEMs and the scale for the car lines is across and across many car lines and across different platforms. So it's not something that is perceived as just and let's say, as some super high end.

Operator

Kevin Galligan, WestPark Capital.

Kevin Garrigan

Hey, guys. Thanks for letting me ask a question on. So I know you have an icon launching later this year and you talked about other opportunities in the industrial market, but it seems like automotive is really about a ramp just based on commentary from you and a few other lidar companies does your focus now I'll switch away from the industrial market and really focus more on auto and putting all resources towards auto or will you still focus on trying to win win some other industrial awards? Or I guess would you need to add resources in order to go after both markets?

Salehian Soroush

Yes. Look, I would say, I think one of the key differentiators for Aeva is that we have had a consistent strategy from day one, right? We are building that perception platform of the future. That's that that's now coming to materialize. And in the near term, here, we last year we secured multiple production wins in oh three to be specific each year and now we are seeing now on a program starting to take place and ramp up. And I kind of mentioned this year is '25, May '25 some truck into the six and multiple other programs on our automotive that are in a similar timeframe, SOP deciding this year, right?
So at our are that the beauty of our products, our platform, what we call a potential platform is that it's all the same core technology, same same core component core vision chip module, which have now been finalized with what we have released with Atlas is the same that goes into automotive for Daimler Truck in our Atlas product. And the same goes into what we do is knock on other than industrial. So same manufacturing line with different software on our processing chip allows us to achieve the different performance points, which really points to the massive flexibility of our platform.
Software Defined software enabled the same partner right. So that's something that I think is a big differentiation for Aeva. This means that we do not need to add in additional resources to be able to support those other programs, the team that we have already sufficiently staffed to be able to support industrial launch that we have already ICON and others, but also to to continue to support our on our automotive OEM programs. Of course, we continue to building our team for future growth and next-generation platforms, but it because of our our technology innovation and the fact that we have already done all the heavy lifting of the core platform development. Now the application of this technology to multiple industries is it's much, much easier compared to, I would say, many others in this space. And that's because of the fact that it's based in 40 or FMs WI. technology.
And the second thing I would say is no, we obviously are fab-less were have a CM model with light CapEx. And it does also benefit as you move from day one that we really thought about that as we go through in terms of production and we work with partners that are qualified that help us from have some of those critical aspects of design rules are design for manufacturing for automotive and making sure also that that is sufficient for industrial applications.
So and you know, on top of all that, I think having going into production with somebody like Daimler Truck, which is the leader, I think either one of the largest, if not the largest OEMs in the commercial vehicle space with such a significant scale and the fact that they have and stringent requirements even more so than passenger we have in terms of reliability, lifetime durability. And as you know, they have that expectation of quality that makes them.
Daimler is something that we see it as a perfect kind of these customers in automotive space because it kind of covers a superset of the requirements that allow us to go to two that support additional program wins based on the qualification work based on the certification and all the work that the team has been doing and will continue to do for the full for the first part. So long winded answer saying is no. We believe in both of these applications, both are going to continue ramping up and and we have sufficient resources to support that for other reasons.

Kevin Garrigan

Yes, got it. Got it. Okay. That makes perfect sense. Thank you for that on. And then just a quick follow-up. If you were to win another one or two kind of RFQs I know you just talked about your on your partnerships with manufacturing partners, but are your current manufacturing lines that you have with them? Are they enough for an additional one or two RFQs? Or would you have to ask them to add capacity or add a manufacturing line?

Salehian Soroush

Yes, absolutely. So that is exactly part of all the manufacturing line planning that we have been doing and we are increasing our efforts now this year, we are including already the capacity that's needed to support, not just the existing wins, but also a number of the additional program wins that we plan to to close out and our job, which is obviously, we don't go and build a bunch of capacity years in advance, but we when we work with our partners, we ensure that one to sufficient spaces available the line is replicable so that both of those can happen in time ahead of these SOPs.
And obviously, as you know, timing usually is couple of years or so. You have enough notice which gives us enough time to be able to actually I do have that additional capacity, but again, we are already doing that capacity for additional customer support because we see that huge pull from the market for transition to FMC WSI.
As I said, this is not feedback at least that we're seeing from existing customers is no longer a matter of it's as a matter of when and what some of the timing is kind of shifting and on the passenger side is aligning to where we are going, where we're headed and at our existing SOPs, which we see it as a key positive sign or then Thank you at this time, we have reached the end of the question-and-answer session.

Operator

And this also concludes today's conference, and you may disconnect your line at this time. Thank you for your participation.