Key Takeaways from the Earnings Call:
Here’s a breakdown of the key details from the earnings call transcript, focusing on the questions and answers:
1. Shareholder Approval & Program Ratification:
* The company is calling an Extraordinary General Meeting to seek shareholder approval for a program (details not specified in the transcript). This approval is required for the program to proceed.
2. Robotaxi revenue Fluctuation (Paul Gong – UBS):
* Growth: Robotaxi revenue is experiencing significant year-over-year growth (7x).
* Fluctuation: Revenue contribution has varied quarter-to-quarter (22% in Q1, 36% in Q2, 21% in Q3).
* Description: This fluctuation is expected and tied to the schedule of permit upgrades and expansion of operating areas.
* Positive Outlook: The company highlights a “very continuous momentum” despite the fluctuations.
* Abu Dhabi Permit: Securing a city-level driverless operation permit in Abu Dhabi is a major step towards expansion in the Middle East.
3. European Expansion Strategy (Paul Gong – UBS):
* Market Prospect: Europe presents a strong market for robotaxis due to:
* High taxi fares.
* Labor shortages.
* Increased demand for private transportation (post-COVID).
* Current Focus:
* Switzerland: Already has a driverless robotaxi permit.
* Germany (Stuttgart): Established an office to explore opportunities.
* France & Belgium: Focusing on trial operations in the next 12 months.
* Expansion Plan (Next Steps):
* Solidify foundation in switzerland, France, and belgium.
* engage with potential countries.
* Explore opportunities for “robobus” and “Robosweeper” applications to gain entry into certain markets (some countries prefer thes initially).
* Gradual expansion to: Switzerland, Belgium, Germany, France, Spain, and Norway.
* Key Considerations:
* Strong local partnerships.
* Regulatory policies.
* Local labor shortages.
* Strategic Partnerships: Collaborations with Uber, Renault, SBB, STL, and airports are being leveraged.
* Dynamic Approach: The company emphasizes a flexible strategy based on market conditions.
In essence, the call paints a picture of a company experiencing strong growth in its robotaxi business, especially with recent permit approvals.European expansion is a key focus, with a phased approach prioritizing markets with favorable conditions and leveraging strategic partnerships.
