“Yes. So I think it's clear, given the dynamics in the marketplace and the way the top line come down significantly since we had put that out there that the 8% is not on in the 2026 time period.”

In context

“ght? Including after GM recently lowered their '25 EV margin target. And given that I think you rolled out that 8% before Tesla cut their prices and saw their overall margin actually like decline to be basically in line with yours. If you're still targeting 8% with the '24 guide out there now, it's really only '25 is the mystery. So it seems like quite a step-up then over the course of '25 to '26. I know you do expect a big boost from those second-generation EVs you discussed earlier but in comparison to the mixed fuel models. But is that just -- is that enough to get you to the 8% or are there other sources of improvement that need to layer in over '25 and '26? I don't know, vertical integration or what are those sources of savings? And how are you feeling about that target? John Lawler: Yes. So I think it's clear, given the dynamics in the marketplace and the way the top line come down significantly since we had put that out there that the 8% is not on in the 2026 time period. So I think that's clear. I don't think anybody believes that by '26, we can bridge from here to 8%. It's going to come down to launching our next generation of vehicles and improving the contribution margin, gross margin, as Marin has said, on the first generation as we go through the year. But Marin, do you want to add more color to that? Marin Gjaja: John, I think that's right. I think it's really the levers we're pulling this year to improve gross margin over time on Gen 1 and then really sticking to the capital discipline and the operating discipline around launching Gen 2 only when they can be profitable and deliver the kind of returns we want. And over time, that will build a stand-alone profitable EV business. Thanks. Ryan Brinkman: Very helpful. Thank you. Operator: This concludes”