The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Stephen Gengaro - Stifel, Nicolaus & Company Inc - Analyst
: Okay. Sorry about that. I hit mute by mistake. Thanks for taking the questions. What I would like to start with, if you don't mind, is -- can you talk
about the approach, the current approach and if it changed to licensing agreements and kind of what you see the potential there for over the next
couple of years?
Question: Stephen Gengaro - Stifel, Nicolaus & Company Inc - Analyst
: Great. Thank you. And I apologize for that background noise. The other question, just the update on how the new Atlas Powertrain is coming and
sort of your confidence in the development of that and the efficiency of that product versus kind of -- because you're just so well known for how
efficient the motor systems are. So I'm just curious where things stand there.
Question: Stephen Gengaro - Stifel, Nicolaus & Company Inc - Analyst
: Great. Thank you, Marc.
Question: Tobias Beith - Redburn Partners LLP - Analyst
: Hi, good evening, Mark and Taoufiq. I hope you're both well and thanks for your time. I have three questions, if that's okay. Two for Marc and one
for Taoufiq and I'll ask them separately. Marc, in your prepared remarks, you cited the supply of magnets as constraining production, but output
in the second quarter is at an all-time high and also above demand. And I also understand that Gravity and the Air use the same amount magnets.
So I'm slightly confused. And I was wondering if I can ask the further details on that topic or if you can tell me what I've missed.
Question: Tobias Beith - Redburn Partners LLP - Analyst
: Okay, I think I understand. Second question for Marc. About two years ago, I asked your predecessor to detail the time line and the required
milestones from them to starting production of the Gravity to help me judge progress from the outside. I was wondering if you could please do
the same for the Atlas Powertrain and the first model based on the midsized platform.
Question: Tobias Beith - Redburn Partners LLP - Analyst
: Thanks for that. Taoufiq, final question from me. How much did step up in the write-downs on inventories and losses on firm purchase commitments
is attributable to tariffs versus building raw inventory to the ramp-up of the Gravity?
Question: Tobias Beith - Redburn Partners LLP - Analyst
: Okay. So just some crystal clear, right, the 21 points of tariff impact, but not all of it was actually realized in the second quarter and you're still
expecting some reimbursements to come later in the year. So actually, the impact on the second quarter was more than 21%?
Question: Tobias Beith - Redburn Partners LLP - Analyst
: Okay, understood. I really appreciate the detail from both of you. Thanks for your time.
| 
