Route(s) to market(s)22 Apr 2021 19:02
I’ve just listened to the manufacturing slide, the following one & the Q&A a few times and the language has me increasingly convinced that a few people trying to be clever with trades might end up caught with their pants down. He talks about the U.K. and particularly U.K. manufacturing very distinctly. He mentioned wanting to keep manufacturing in the U.K. but will have to look abroad to meet demand. He mentions that he will update on the U.K. situation as soon as possible. All of this appears to be ringfenced. The govt is the route to the U.K. market and why would this capacity be released for those tests to end up in europe. It wouldn’t, so talk about up to a certain amount of capacity in the U.K. would very strongly suggest that it’s just a matter of time until it’s all confirmed. If it wasn’t likely to happen, then the answer would be just 5m, not a range.
He also talk about significant demand in Europe. This can’t be met by ringfenced U.K. demand and it’s unlikely that 30m would satisfy it anyway. The slide has OEM partners written on it. It’s there in red and white. Here’s an example... https://lionex.de/oem-3/ He talks about third parties awaiting CV data. Plural. This suggests that multiple OEM deals to line up supply to meet significant demand in Europe will appear.
He goes on to say they cant even think about the states due to needing even more capacity. That’s being considered. In addition.
In conclusion... Europe is happening, margins are better and they’re in active discussions. All good. Everything points to the U.K. happening- that’s 30m. Bonus. The US might be the final cherry on top.
All wild speculation/my interpretation. Have a listen.
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