Ola Electric Mobility (NSE:OLAELEC) Q1 2027 Earnings Call

0:00 Good day, and welcome to Ola Electric's q one f y twenty seven earnings conference call. As a reminder, all the participants will be on the listen only mode, and there will be an opportunity for you to ask questions after the opening remarks. Please note that this conference is being recorded. Before we begin, a few quick announcements for the attendees. Anything stated on this call, which reflects our outlook for the future or which could be construed as a forward looking statement, may involve risks and uncertainties. Such statements or comments are not guarantees of future performance, and actual results may differ from those statements. Now I would like to request Shri Bhawish Agarwal, chairman and managing director, and Shri Bhuta Stobhi, CFO, Ola Electric, to begin the conference.

0:48 To begin, first, I would request Deepa to start with the opening remarks. Thank you so much. Good afternoon, everyone, and thank you for joining for Ola Electric q one twenty seven earnings call. As you are aware that q one marks an important point in the evolution of our business. You know, last year, which is financial year '26, was a year which actually took some difficult decisions and necessary actions. We reset the operating model, streamlined the organization, tightened execution, and materially optimized our cost structure. Q one twenty seven was the first full quarter operating on that reset pace, and the results give us confidence that these changes are beginning to translate into business performance.

1:43 For the quarter, we returned to growth, gained market share, maintained strong gross margins, and did so on a significantly lower leaner operating base. Deliveries increased to approximately 39,200 units, nearly doubling quarter on quarter, while orders increased approximately 44,000. Automotive revenue grew 72 sequentially to 455 crores with gross profit of 139 crores. Our growth materially outpaced the industry with the broader electric two wheeler market grew approximately 7017% quarter on quarter. Ola registrations grew 97%, taking our market share from 5.1% to 8.4%.

2:34 This growth was broad based with sequential improvement across every region of the country, giving us a diversified base from which to scale. The second important point is the quality of the growth. Despite a challenging commodity environment, We sustained automotive gross margins at 30.5%, reflecting the underlying strength of our product economics. At the same time, we continue to optimize cost of our business, right? Consolidated operating expenses declined 22% quarter on quarter to $3.33 crores, and we remain focused on moving towards a steady state operating cost base. As a result, consolidated adjusted operating EBITDA improved from negative 326 crores in q four of last year to negative 195 crores, you know, of this quarter twenty seven.

3:33 Our objective is to grow on this leaner operating base and progressively translate incremental revenues and gross profit into operating leverage, taking us towards message. When you have finished the recording, you may hang up. Taking us towards breakeven and sustainable profitability. The balance sheet has strengthened during the quarter through the successful completion of seven eighty crores, QIP, giving us greater financial flexibility as we execute the next phase of our growth. Beyond the immediate financial performance, there are few structural drivers that are increasingly important to our medium term economics.

4:22 Our 4,681 MC Bharat cell is already commercially deployed, while 4,600 LFP cell is now BIS certified and vehicle ready. As LFP is progressively integrated into our portfolio, we expect battery cost optimization to become an additional lever for product economics. Please leave your message after the tone. To rerecord your mess More broadly, owning the cell roadmap gives us greater control over cost, supply, and product development. The second is monetization beyond the initial vehicle sale. We now have an installed base of more than a million customers. As this base matures, service can increasingly develop into a recurring high margin revenue stream with our road map targeting service revenues of approximately 400 to 500 crores by twenty twenty seven, twenty eight.

5:21 We are increasingly using AI as an operating productivity layer across sales, registration, fulfillment, service, and r and d. The objective is simple, improve customer experience and execution while allowing the organization to scale without proportionately scaling. Finally, on the cell business, we are moving towards capability creation. From capability creation towards commercial deployment, the Gigafactory is expected to be operational at six gigawatt hour by September, supporting greater own cell integration in our vehicles as well as opportunities across energy storage and other applications. As we look ahead, our priorities are clear scale volumes with leaner cost base, drive operating leverage, deepen vertical integration, broader distribution and life cycle monetization, and remain disciplined on capital and cash.

6:21 The external environment remains supportive with electric two wheeler penetration in India crossing 10 for the first time in June of this year. For us, however, the focus remains firmly on execution. Q one is the encouraging first proof point after the reset. We have demonstrated that Ola can grow significantly faster than the market while operating with a materially lower cost structure. The task is to compound that progress and translate higher scale, stronger product economics, and deeper technology ownership into improved margins, lower cash burn, and ultimately sustainable profitability. With that, I would actually, you know, stop here, and I will, you know, seek comments and questions from the group. Thank you so much.

7:16 Thank you, Deepak. Now we begin the question and answer session. Anyone who wishes to ask a question may use the raised hand option. If you wish to remove yourself from the question queue, you will get the raised hand option once again. Participants are requested to unmute themselves before asking the question. Before asking the question, we request you to introduce yourself with your full name and your organization. Now we wait for a moment while the question queue assembles, and then we'll begin with the question and answer. So while we wait, I just want to underline some of the comments Deepak said. It's been an important quarter, q one. Margins were steady, still industry leading above 30% despite the commodities uptick. And we do for... You know, forecast margins to be in this range as over the next quarter or two, commodities come down and margins will further improve again.

8:10 I think the highlight of this quarter was obviously the top line recovery, strong top line recovery, as well as operating cost reduction. And I think Deepak highlighted it in his comments, but almost on two x volumes, q four versus q one sequentially, our OpEx has actually come down meaningfully. OpEx in q four was, I think, $4.28 crores. This is total OpEx including leases. And in q one was $3.33 crores. In in this, there was a onetime reversal of the sell... ACC PLI penalties that we were taking every quarter. About 55 crores or so, there was a reversal. So even if you remove that, the OpEx was about $3.80 odd crores, which is meaningfully lower than the OpEx of q four on almost a doubling of volume.

9:00 On OpEx, we continue to structurally improve our cost structure. I think over the next couple of quarters, this OpEx will come down into the 300 to $3.25 crore range, which is where, you know, our target is. And while we are doing this, we are going to keep gross margins steady to slightly growing and volumes also steady to slightly growing. So I feel, you know, from some of the challenging quarters in the past, we've now gotten a good balance in the business between growth as well as margin... Gross margin steadiness as well as operating cost improvements. So overall, management feels very, very confident of the path ahead. We have some very exciting stuff coming up on August 15. I hope you are... You all will be tuned to that just in about a week from now.

9:52 There are couple of other things that happened in the last few days also I wanna highlight, and I'm sure it will come into your questions also. Firstly, we opened our... We could be signed up first MOU for the Mahashakti product, which is the utility scale energy storage. That will be a very meaningful growth driver for the company in the coming years. And, you know, we can see from that MOU that it's it's, you know, high quality renewable platforms, utilities. Everybody is now engaging with us to to get get access to our Mahashakti product as it comes online. You know, we will keep announcing more demand pipeline of Maheshakti as it comes online. This one was 20 gigawatt hour through the next five, six years.

10:38 And I feel very confident that more and more demand pipeline will get announced. Actually, we're we're, like I said, speaking to everybody, so demand pipeline is building soon. Please record your message. When you have finished recording, you may hang up. Sorry about that. That's not us. So, continuing with the cell business, like Deepak also mentioned, six gigawatt hour will get, fully commissioned in this quarter. So that's, again, a good exciting, thing to look forward to. We've also been talking to companies across the spectrum to use our cell in their products. And I can say that we've had very encouraging responses from global OEMs also, as well as Indian companies, especially in sectors like drones, etcetera. We will be announcing more in the coming few days, but very strong.

11:29 Many, many companies are testing our cell. Finally, just yesterday, we also announced that we have evolved our auto distribution strategy to a multichannel strategy from a single channel company owned approach. And I think this is also going to be meaningfully enhancing the company's growth going forward in the near term, actually. You know, I wanna share a little bit of anecdote there before we open up. From almost the time we started this company five years ago, you know, we've had a lot of people call in and ask for being our dealers. Now in the early days, just going by a dealership would have been slower rate of growth. And a company owned strategy allowed the brand to interact directly with the customers, whereas back in the day, four, five years ago, the whole dealer ecosystem was still a little early on automotive...

12:24 On EVs. So their their confidence on EVs was low. But that has materially changed to a large extent. Our our scale has evolved that as well as our whole industry has grown. So now as soon as last last month or so, we've been engaging... I've personally been engaging with dealers across the country, and their inputs and feedback has been quite unanimous and unambiguous that, know, Mahbish, you all... You guys have the best product and the product portfolio. The fact that we have scooters, motorbikes, and Shakti. And, you know, the dealers obviously understand the local nuances of auto retail, so they feel very, very confident. So we will actually be announcing the first set of, dealerships go live with shops already set up on Janmarshmi, which is early next month, and looking forward to having meaningful scale before the Diwali season hits.

13:15 You know, I feel very confident that that will bring a lot of increased top line growth into... From from where where q one basis further ahead, you know, we are... We can do a very strong uplift from getting the best dealers to work with the the company. Those are my comments on what Deepak said. Just underlining the... Just summarizing that good quarter, put a bounce back from q four. Gross margins for us are targeting around the the 30, 32% mark, which is where we want it to be, and OpEx continues to improve structurally. So with that, I'll open up for questions. Thank you, Bhavish. Thank you, everyone. We'll take the first question from mister Rishi Ola from Votak Securities. Please unmute yourself and ask the question.

14:02 Hi, Rashid. Yeah. Hi. Hi, Babish. Good evening. Just couple of questions on the results and the strategy going forward. Just first on the results, why there was a very sharp decline in the ASP on a sequential basis? So is there a... Is this the product mix or, you know, something else that is driving Rishi, lastly, a product mix. I would put 90% of it to product mix. And so going forward, this is where it should be, or you think there can be an improvement as a motorcycle portfolio kind of ramp, sir? So actually, we are seeing improvement in the product mix already from what we saw in Q1. So our premium business is also starting to grow again as overall the brand has grown from where q four was. And motorcycle is also starting to, you know, grow in the in the Northern Plains. So I don't want to hazard a forecast on product mix, but overall, I just want to say that it'll be in the, you know, some of the last months, know, plus minus 5% is where it'll be.

15:06 Understood. Understood. And in terms of volumes, right, in one q, we did roughly 40, 45,000. So is there any guidance you would like to share for full year? Like, sequentially, you are talking about improvement. So, like like, how do you want to exit at least, you know, going into the fourth quarter with more... No dealership onboarding and, you know, let's say, mature... Maturing of the products which you have already launched? So, Rashid, we will not give a a guidance or a forecast, but I'll tell you what approach we are following. So our focus is to keep growing from here on a disciplined level. Our gross margins are best in the industry, and our operating cost structure, especially for a vertically integrated business model, has become quite competitive now. So our focus is to keep, on... From where we are, keep growing in a disciplined way. Now how much will that result in in quarter on quarter? I don't want to hazard a guidance, but I do feel confident that, there will be steady growth looking ahead.

16:06 Understood. And just on the cell piece, so have we started using our own cells in our vehicles? What would be the... If yes, what would be the penetration? And also if you could comment on Ola Shakti, you know, where we are in terms of, you know, revenues or any scale up that has happened on the Ola Shakti side of things. So our sales are only in our products, Rishi. Few thousand of them are on the roads already. Around... In q one, we decided to pause cell production to get the next phase installation complete, so which is, you know, from two and a half to six. So two and half was already installed. We produced a few 100,000 cells, which are in production in our vehicles on the roads to customers. We have a backlog of our own cell production needed to go into Shakti as well as our auto products, which is where we needed about two to three months of zero production time to finish the installation of the remainder of the capacity, which is now getting done sometime this month.

17:08 Most likely in a week, ten days it will be largely done, and then we will ramp up production of ourselves again. So the forecast going forward is that about three of our vehicle products out of, I think, about nine or 10 SKUs have the 4,680 selling them. They will continue to get scale as we start ramping up production with the full six gigawatt hour complete. And on Shakti, you And just in terms of Shakti. Yeah. So Shakti, also, you... We we will be announcing the Shakti Gen two on August 15, which will be with LFP cells. So Shakti Gen one was with NMC cells. And with NMC, we we decided that we just wanted to put out enough so that we learn about the category, but not really scale too much because as you can understand, NMC is costlier than LFP, and gross margins on that Shakti were not to the target level.

18:02 With Shakti Gen two, which is with LFP cells, our gross margins are going to be actually even healthier than our auto segment, and that gets announced on August 15. So on August 15, actually, we'll be sharing more details about Maha Shakti, about Shakti, as well as other formats of Shakti, which will go into, the C and I space, commercial and industrial space, including data centers, etcetera. So all of that gets rolled out, starting this quarter. But was there any meaningful contribution of Ola's Shakti this quarter in terms of revenue? No. Or because of the future? No. We we... Again, we delivered a few 100, and then we decided not to scale up the NMC based Shakti, but to pivot to the LFP based Shakti. And another good news in that direction was in this quarter, our LFP cell got PIS certification also.

18:50 So our LFP program proceeds very, very well. Understood. And just last two questions. One is, what is the CapEx plan for this year? How much we have incurred in 1Q? And secondly, why depreciation also was down on a sequential basis? So, like, was there any write off which were taken which led to this decline in depreciation? So, Rishi, our our CapEx is... If you can see in our auto business, there's hardly any CapEx now. And you can see in this quarter also our free cash flow and operating cash flow is pretty much... There's no gap. Right? So auto does not need any CapEx for the foreseeable years because our factory is scaled up to a million units a year already and not just million units, but it's a vertically integrated factory.

19:37 So we can really produce for a while. Our cell factory also is finishing its CapEx cycle this quarter with six gigawatt hour installed. We don't foresee any more CapEx after that, and even that CapEx is all funded through debt. The equity contribution is largely done. So no more CapEx for the foreseeable future is my guidance to you guys. On depreciation, depreciation, we have evolved a little bit of our depreciation policy in sync with the industry standards. There were some areas where we were depreciating very aggressively. We just brought that to industry standard. So that's the $10.20 crores delta IEC. Understood. And sorry. On the k... Again, just clarification on the CapEx. There would be also some bit of r and d you you would be capitalizing. Right? So any r and d targets which you would be sharing?

20:26 No targets, Rishi. And we'll capitalize a minority of our r and d spends, not a large part. Understood. But any point of overall... Just last question. Sir, any point I want to Sorry to disturb, Rishi, or anything I'll I'll find the headache. Okay. Yeah. In the interest of time, we'll be taking questions from the rest of the participant. Thank you, Rishi. We'll take the next question from mister Akshay Satish from Alpha Invesco. We we request you to kindly unmute yourself and ask your question. Hi, Akshay. Hey, Bhavesh. Hi. Thank you for the opportunity, and congratulations on lowering the costs. Bhavesh, what I wanted to understand more is on the sell side. So I wanted to understand what would be the LFP side of the business? What would be towards the NMC? Is there any clearance, like, we've decided for this?

21:22 Akshay, good question. As we see ahead, a large part of our business will be LFP. Almost all of Ola Electric's auto business will move to LFP soon enough. Again, hold on till the end of the month, we will have some good announcements there. NMC in our auto business, about 20% of our portfolio will be NMC based, which will be higher, performance or higher, the top end of the of the range will be NMC based. Otherwise, everything else will move to LFP. All of Shakti and Mahashakti, which is the energy storage business, will be LFP based. NMC will also be relevant for some niche categories like drones, etcetera, where people have, obviously, shown a lot of interest in our NMC cell, and many of them are actually dialing it out, and we will, talk about that soon.

22:14 Okay. Okay. Yeah. And then, we had a... We earlier had plans of scaling the capacity up to 20 gigawatts. So just wanna confirm, is it still on the cards, or what are we thinking on those terms? So the plan there is six gigawatt hour will be the cylindrical capacity. Six to 20 will be prismatic. Our r and d on our prismatic cell is already underway and that we expect it to complete by end of this year. At that point, we will aim to scale from six to 20, but only by getting equity into the cell company. We will not need, use any parent, entity equity to go from six to 20. Now we will raise separate equity for that at the right time.

23:00 Okay. And that we plan to do in '28, '29, any No. No. No. No. '27. In '27, we will close. Okay. Okay. And could you also throw some light on what yields we saw on the, capacity when we brought it down... We stopped it for a few period. What yields that we saw? Because what I believe is it is only commercially viable if we can, produce at 90% or higher yields. So, actually, our yields are in the, let's say, high seventies or 80% range when we paused it. There is a clear road map to go from there to 90 plus percent within a quarter of restarting it, is when, you know, later this month, we will restart production after the full installation is done. Okay. And we can see numbers from, battery business from q three onwards. Is that what saying? That's what you're saying. Right? Yes.

23:52 That's correct. Okay. Okay. And on the, scooter business, we still see some service issues in terms of availability of parts. Just want a broad understanding from you. What is it that's caused that problem? Is it vendor side or the numbers not going in certain amount? Just want to understand perspective and picture from your side on that. See, most of the service challenges are now behind us, Akshay. And you're right. It was largely linked to availability of parts, not really a very large need for service. But whenever parts were needed, they were in less supply, especially a few critical parts where we did have some vendor challenges, including the challenges linked to the macro geopolitical situation. So we are navigating that. There are no challenges which are material on parts supply chain, but we... There are there are a couple of things which we monitor very closely on parts supply.

24:52 Now going forward, with the dealer model, the difference will be that the dealer will actually just stock the parts and buy it from a national carrier basis. So that challenge will be much lesser there for for the dealer side of the, of the sales, network. Correct. Correct. And when you say vertically integrated for the scooter business, could you, specify a little more in terms of what OLAELECHUA manufactured? Motors, MCUs, BMS? Yeah. Some electronics, motors, the frame, the paint, the battery pack, the wiring harness, a lot of the, fabrication, etcetera, all of this is done in house. Okay. Okay. Perfect, Harish. That answers my questions. Thank you so much for the explanations. Thank you, Akshay. We'll take the next question from mister Pravesh Patel from Akasha Capital.

25:42 We request you to unmute yourself and kindly ask the question. Hello? Good evening. Sir, can you tell what is the expected timeline of transitioning to in house manufacture itself for winter Ola Electric portfolio? Pravesh, we have not put anything publicly out there, but like I said... Yeah, let's assume by the end of this year, most of our vehicles will be on our cell. But I don't want to really give a very hard time... Guidance on that. Thank you. Thank you so much, Olafesh, for the question.

26:30 We wait a couple of minutes for the I think Rishi has a follow-up so we can finish, Rishi. Sure. Rishi, if you have a follow-up question, we love to take your questions. No. Hi, Rishi. We request you to unmute yourself and ask the question.

27:46 Yeah. Sorry. I was not... Like, I was muted from your side. Just, you know, two things from my side. Again, just clarification on the CapEx. Well, you said that there is hardly any CapEx, but any number, like, it would be 100 crores, 200 crores for this year, which you will be doing or it even won't be to that extent? So, Rishi, except for the cell project, which is just getting done, beyond that, CapEx will be maybe for 30 to 50 crores. 50 crores, you can take a direct number. Understood. And just on the sell side of things, so when you said that from third quarter, we'll start seeing contribution. So, obviously, one piece is where we'll be internally using it in our own No. We'll see sales from Shakti also in market with the LFP cell.

28:36 We will also see At least hopefully, I think either Q4 or Q3, we will start seeing some early revenue from Mahashakti also. Understood. So that you will be commencing supplies to excess energy or it's it's somebody else? I won't be able to share that on this call. Understood. And just on the dealership, so currently can you just help us with, like, how many touch points we have and, let's say, by festive or by end of three q, how many dealers we would like to appoint, you know, as as a new strategy? And just at a higher level, why... You know, what prompted us to change our go to strategy, you know, from company owned dealership to So what just I know, I'll but I'll still engage you and answer.

29:29 See, the auto retail is obviously has a lot of local nuances. We've also learned that along the way. The way we started as a brand would not have been possible with a dealer only channel outreach because you followed us very closely. We had a very strong start to our journey. It's a five year old company only. But that said, as scale happened, and by the way, we still have the largest number of cumulative dealer EVs sold in the country. So we have the largest customer base even today. So as we scale, we realized that the local nuances of auto auto retail, customer engagement, the servicing, etcetera, management of the shop, a dealer can do much better at scale. So hence, we've pivoted. The strategy now is that company stores will become more like experience centers. So you can imagine bigger, higher quality of resources, that kind of store, and hence, over time, fewer in number. And dealer stores will become the backbone in terms of volume and transaction and service, etcetera. So that's now the way we are thinking of growing. We've gotten phenomenal interest, Rishi, last two days that we've publicly announced it, and even before that, that we've been engaging with about 20, 30 teachers for about a month now.

30:50 We have got almost 1,000 people interested in speaking to us. It's more than actually that our team can process right now. So our goal is to select good ones, high quality ones. We've also, by the way, gotten back Vivir Subbu, who used to be a board member before we went public. And he's he's even then been engaged with the company. So he understands the... All the key dealer ecosystem people. So he has... He is actually helping us select the right people. It's it's a matter of selection actually for us right now. The proposition for dealers is very, very strong as they see it and as we are engaging with them. Firstly, they have a very large customer base, and dealers really believe in service revenue. So... And if you can see, we have a large number of EV two wheeler vehicles out of warranty period over the three year warranty period. All our general vehicles are out of work.

31:40 So dealers find a lot of potential in that. Second, our product portfolio is the broadest. We have scooters, both premium and mass. We have motorbikes, and we have Shakti also. And we have a few upcoming products which we have shared in confidence with some dealers. So see... So the product portfolio them also is very strong. We are not a new brand which is not known. And hence dealers find strength and value in that also that Ola is a very well known brand. And obviously there questions that has the brand in the last few quarters been lower? Obviously it has been lower, but they also see the resurgence and the really good dealers see the strong product pool that our brand has The challenge on service, obviously the dealer feels that they can address it much better.

32:31 So we feel it's a very strong path ahead, very relevant pivot. The overall scheme of things, think this will end up making meaningful difference to both our scale over the next few months, but also industry penetration. And so any numbers you would like to share? Like, today we have around 500 touch points, if I'm not mistaken, and, like, any target you have for dealership counts by the end of sharing number,. But I I... Like, I said, through my comments, I said that the first bunch will go live on Janmashmi, which is, I think, September 4. Understood. And just lastly on this Ola Shakti, is there... Because we would be selling it through our own, you know, experience centers and dealers, but is there any different go to strategy... Go to market strategy you are thinking of? Because it's more distributor led sales that happens. Right? So Good question. Is there any thought process?

33:24 So we are doing the... With Ola, Shakti, from day one, we'll be... We have been and we will increasingly as we scale supplies, we'll be doing a multichannel strategy. It'll go through our own company stores. It'll go through our automotive dealers also. And, there are other industry specific channels for for the, for that kind of inverter or battery business as the, typical parlances, and we are signing up the traditional channel also for that. Understood. Okay. Thank you so much and all the rest. We've we've learned to maximize channel strategy. Thank you, everyone.

34:10 In the interest of time Actually, no. So we'll take Ola's question. Ola is a a person I know. Ola, do you have a question to ask? Good evening, Mahavish. Hi. And hi. Congratulations to you and the entire Ola Electric team on the progress this quarter. My question is on the recently announced Axis Energy partnership. While the MOU is an exciting validation of Ola's energy ambitions, could help investors understand the scale of the opportunity? And how should we think about the revenue potential commercialization timeline and the broader pipeline for similar enterprise partnerships over the next few years? No. Good question, Ola. I believe the energy storage opportunity is gonna be massive, for India and for our company also.

35:00 See, my own... Actually, the the CEA estimate, the government body, the CEA report had an estimate of 400 gigawatt hour in about five, six years, I guess. I think that's another estimation of what India will need. You know, energy storage will be deployed across the grid level, home level, everywhere. Energy storage is gonna be everywhere. We have a very strong advantage in terms of coming to market with a vertically integrated product, early enough. And our engineering strength really helps us deliver a good proposition to customers there. The customers there care about things that... High quality engineered product like ours can deliver. For example, our product will have better round trip efficiency because all the automotive technology that we have used to optimize range, and you know that our range by far is the best for the same kilowatt hour battery pack. Absolutely.

35:56 Software, the the wiring harnesses, everything we are turning into, Maheshakti also. So the round trip efficiency will be a few points higher than what industry offers. Safety is another paradigm. Our safety will be higher. How much energy put into one container? I think industry standard right now is five megawatt hour in the container. I don't want to take the thunder away from August 15, but ours will be higher than that. So so we are very confident of our proposition, and market is gonna be immense. Yeah. That's that's great to hear. The other question is in regards to Roadster. Just wanted to understand what is the total contribution of Roadster bike in your total revenue and... I mean, the total count of vehicle vehicle sold.

36:43 So that Roadster is, for us, still a still a minority contribution, a small minority still. So that's the majority. See, Roadster, what's, we've gotten good response to the product. People are really interested in the higher range product, which is a 9.1 kilowatt hour. We haven't been able to supply enough because of the four thousand six and eighty supply cell shortage because we want to finish the installation. So even in this quarter, you see our orders to our deliveries were slightly lower because 40 the six eighty cells will... The vehicles will need to get delivered over the course of this and the next quarter. But Okay. As the availability of the nine... The higher range Roadster increases, I think people will really start adopting more bikes. Okay. Yeah. Those were my two questions. Thank you so much.

37:35 Thank you, Olaf. With this, we come to the conclusion of the session here. We appreciate your time and all of your questions during the call today. Thank you so much for joining us, and we look forward to meeting all of you during our next earnings conference call. You may now log off the conference call. Good evening.