Please type it in the Q&A section, and I'll present it to management. That said, Greg, thanks for being with us today. The floor is yours.
Thanks. Thanks, John. And just a quick correction, 'cause I think I misheard it, but it's the ticker's G-O-E-V, GOEV. So great to be here and give an update. And for those of you that have followed the company and introduce the company, for those of you that are new to what we do at Canoo. So just a little background. So I'm Greg Ethridge, I'm the CFO. I've been with the company as the CFO for about nine months now. Prior to that, I'd been on the board of Canoo for a couple of years. I was on the sponsor side with Hennessy Capital when we took the company public in 2020.
So I've had the benefit of seeing, really from the early days of the company, kind of the progress that's been made, the changes that have been made, effectively, the repositioning and refounding that Tony Aquila, our CEO, has made since he came into the company in early 2021. And I'm really excited about the future of Canoo. And I wanna just dispel some of the rhetoric that's out there right now, because it has been a difficult electric vehicle environment, right? Everyone, I think that's followed the news, the headlines, it's been pretty challenging. But I do believe, you know, and we believe very strongly, and I think that the time will prove our point, that electrification of mobility is not going away.
It's not the right use case for every application. But in terms of, you know, what we've seen, you know, whether it be Elon Musk on the, you know, Tesla and consumer side from the early days and now, the adoption, or what we're going to see in terms of a continued fleet adoption, where we're focused at Canoo, I think it's a really exciting environment, and I think I'll explain more about it, and why I feel that way, and why we believe in the, in the- this opportunity for Canoo, and the future of growth and kind of clean growth around mobility. You know, on the consumer side, I think it's worth, you know, pointing out, adoption rates have been slowing but are still very robust, and that's on the consumer side.
On the fleet side, we think it's actually much more the trend is much stronger, right? Because most of the, most of the fleet and commercial guys are continuing to be very focused on both economics and also green mobility. From a comparison perspective, you know, the challenges on the consumer side have been around ASP being too high relative to the ICE variants. There's obviously, you know, a lot of rhetoric around trade wars, and costs, and local content requirements to be able to get access to some of the government benefits. You know, maybe some have felt it really hard in terms of residual value deterioration as prices have come down here over the last 12 months. And I think that I...
For every one of those points, I would say Canoo is very different, and the commercial and government market that Canoo is focused on is also very different. We've created a different model several years ago. If you remember way back, Canoo was originally focused on consumer. But, you know, many years ago now, two, three years ago now, we repositioned the company to be totally focused on commercial and government initially. That doesn't mean we can't do consumer down the road, but we saw what was coming, the writing on the wall, the level of competition, and the focus on that consumer market, and we chose not to pursue that. And so I think it's, you know, important to, you know, differentiate from a fleet perspective, customers are very sound, residual values remain strong, pricing is competitive with ICE.
And at the end of the day, total cost of professional ownership or, or total cost of ownership for our customers, it was, is what drives their buying decision. It's not around whether it's, you know, internal combustion or EV necessarily, although a lot of the benefits with EV corporates are very focused on from an ESG perspective, but it really comes down to economics. So I think it's just important to, to kind of set aside the rhetoric that you hear, and there's... you know, dispel that the consumer, yes, you know, I drive consumer electric, I love it. I know what the benefits are. There's a lot of headlines here that would make you think that might not be the right decision, but we don't see that at all on the commercial and the government side.
The commercial fleet and the government side is what we're focused on. I've got some slides I wanna take you through after getting through that. You know, obviously, if you look at our vehicle and you've never seen it and focused on it, we've spent a lot of money getting to where we are, and we're at the stage now of production ramp. These vehicles on this page are vehicles that we manufactured in Oklahoma City and have now delivered to some of our government and commercial fleet customers. It's a very unique form factor. It was from inception. Canoo was founded and designed around a blank sheet of paper. We weren't trying to retrofit effectively an internal combustion solution using the traditional, you know, whether it be architecture around internal combustion or otherwise.
We took a completely different form factor, started with a very strong technology base, designed from the ground up, our very unique platform, that then can be used over and over again, saving cost, saving money, money that can ultimately be passed on to our customers, and actually yield better performance. So I'll take you through first the technology benefits of Canoo, and then the business case. These are the first two products that we're bringing to market, the LDV 130 and the LDV 190. These are kind of class one, class two delivery vans. Our focus on, in our segment of the market, has been, we believe this is where, you know, 80% of the profit around mobility and electrification are around those consumers.
So when you think about this, the reason delivery vans are different than a consumer, we don't have interiors. We, we don't have to spend the money, the CapEx, to be able to build and secure interiors. We're selling a very, you know, very basic back end, you know, blank, back vehicle to our customers, and then we're customizing that for their use case. And there's margin dollars and profit at a higher basis on that upfitting opportunity. So when you think about the, you know, the share of wallet in the commercial and government space, we think it's far superior to consumer, and that's one of the reasons, you know, Tony and the company made this pivot back in 2020, early 2022 to go after the commercial and government side of the business.
We've invested over $1.6 billion to date in the platform, about $1 billion of that being in the actual MPP1 platform. You know, obviously, the market is, you know, phenomenally large in our view, and we think about the market both on the government and commercial side. We have a very strong business case that's focused around, first, having a phenomenal product and technology; second, building up your customer backlog and firm orders, which I'll walk you through; and then finally, where we are today in terms of staging the company is moving into production and scaling production to get to profitability. So that's really our focus over the next 12 to 24 months, is ramping manufacturing and getting to that profitability point. The technology is really cool. When you see you can see this as...
You know, one thing that's really, you know, that's unique about our platform is because it was designed from the ground up, it uses some proprietary technology, such as the Steer-by-wire. And you can see the disconnect between the steering wheel and the mechanical connection that typically will go into the front two, you know, your front steering wheels. By decoupling the mechanical connection, you can actually move that steering wheel anywhere on the platform and maximize the utilization of space. So we think about the MPP1 as a minimalist, a minimalist platform with maximum functionality. And minimalist goes down to really the part level. So we have reduced the number of parts to the minimum number of parts possible that ultimately reduces cost, reduces purchase price, and increases return on investment for our customers.
That really goes all the way down to the technology level. I have a slide here that compares, you know, the size of our platform, and it doesn't do it justice, you know, until you've actually been in the vehicle, seen the vehicle, seen the turning radius, but this is a very compact platform. So it gives you the payload of a, you know, a Ram 1500, but the turning radius of a Prius on the wheelbase effectively of a small pickup truck. So when you think about the utilization and kind of that, you know, being able to maximize that payload, and whether it be inner city, you know, small streets, high-density urban areas, you get a very functional platform that can do a lot of different things, on...
In areas where we believe electrification makes the most sense. So from a tight platform and tight wheelbase, it makes a huge impact. And what we've heard from our customers that have had it in testing, like Walmart, the Postal Service, and others, is they love the functionality of the vehicle, and that's one of the key attributes of what we bring to the market. Talking about technology for a minute and source parts, we source over around 90% of our raw materials from U.S. and allied nations. That other 10%, we are focused on getting into U.S. and allied nations. So that's part of our supply chain harmonization that we're focused on right now as we ramp production.
Because of the macro environment around geopolitical risk, we've really tried to pull as much content as we can, and we'll continue to pull as much content as we can out of China. On the technology side, I mentioned the steer-by-wire system, first to market. Others have followed, you know, followed in our footsteps now. It's still not massively adopted on land mobility, but steer-by-wire has been used in the aviation business for decades. Multiple redundancies, a lot of the factors that I mentioned earlier make it a really unique solution for being able to maximize the platform. But what it does do from a traditional auto perspective, it delinks also the feel of the road from the steering wheel. So a lot of...
You know, from our use case perspective and our customers, we don't think that's an issue, 'cause again, functionality is more important than a, you know, traditional auto enthusiast that might really appreciate the feel of, you know, every bump in the road. On the electric motor side and suspension and other things that we have listed on the page, you'll see that our performance from our proprietary design components is actually superior to what you would be able to buy on the market.
So unlike others that have gone out and and maybe sourced some of their IP from other customers or decided to outsource various components of their business, we stayed away from that because Tony and our vision at Canoo was we wanted to control our own destiny, and that means controlling our own technology and controlling our own manufacturing, and that's really what we've been focused on. I don't wanna gloss over our battery system. Our battery system's designed. We use Panasonic 2170 cylindrical cells, so, you know, cutting-edge on the battery cell side that Tesla's been using for a long time. Obviously, have flexibility to change that with new chemistry and things that change over time.
But I also think that it's important to note that our battery system is our design, our control, and I think that's just, you know, worth pointing out. John, do you mind going on off camera, please? So, on just comparing parts, ICE and BEV, compared to Canoo, just to give you a sense of the number of parts, I think it's relevant. You know, we say we have, you know, we have 1,800 parts in our vehicle. On the ICE side, if you compare, you know, just across one component, for example, this is the drive unit, it gives you some semblance of our technology number of parts versus a traditional BEV versus an ICE.
I think it's pretty phenomenal when we think about maximizing our use cases and our technology with the fewest number of parts and ultimately the smallest amount of cost. This is how we get there, and we're continuing to try to reduce, you know, reduce part count over time. Here we go. So, you know, we do. I mentioned this already, that we control our IP with a substantial number of patents. I don't need to spend a lot of time. I do think it's worth mentioning the vision of Canoo as we think about the future of mobility. We've now invested, as I mentioned, over $1 billion in the platform. The platform can actually be used in multiple different cases.
So I mentioned our first two vehicles are the 190 and the 130, but we do have future plans, and I'll talk to you in a minute about some of the other vehicles that we've already sold. But we obviously have a lifestyle vehicle, which is the top left corner. We have a pickup truck, top right corner. The pickup truck can be, you know, for commercial application, for government application, or consumer application over time. And but at the end of the day, think about the economics. We've invested in a platform that has a tremendous amount of flexibility, and you're really able to attach any different body to the exact same platform and get tremendous amount of scale.
That was the benefit of this business, and really being able to take the MPP1 and apply it across all of these different use cases. That gives us huge competitive advantage in terms of CapEx required to introduce new vehicles, but also being able to take that MPP1 that has, you know, maximum functionality and tweak it based on software. So at the end of the day, you know, vehicles have now turned into, you know, you're kind of driving on your laptop, but you can change the way that drive feels, you can change the feel of the steering, you can change the number of rotations on the steering wheel, all based on software, which is pretty cool. We think about, you know, 70% of our critical components or critical systems are built into that MPP1 platform.
So again, that's why you get the scale. That also brings incremental labor savings, and it also captures about 60% of the BOM cost. When we think about the life cycle of the vehicle, the platform reuse concept, over time, obviously, prices have continued to go up. It's been a challenge, right, from an inflationary perspective. But if you've designed an EV platform that can last for a million miles, you know, that's obviously gonna be, you know, be held by multiple consumers. Not every consumer has to keep it the same body.
So over time, our vision is that you would be able to actually go in and recondition the vehicle at a Canoo location and swap out, you know, your delivery vehicle that might have been the first fleet user of that vehicle, and then potentially to make it an adventure lifestyle vehicle, and be able to take it camping, or convert it to a pickup truck that can be used on the ranch or inside of a facility. You know, those are different, you know, use cases, but you're able to effectively recycle a large component of that overall initial cost without having to you know, buy a brand-new vehicle and spend the, you know, that entire slug of capital that might be required otherwise.
Talking a little bit about our backlog, we have, on just the commercial side, we have about 18,000 orders of backlog, and the committed bucket that scales up dramatically greater than that when we think about the uncommitted and options of orders. That represents about $750 million in contractual potential orders. So as I mentioned before, we have the product. It's been tested with customers. I'll talk to you about some of the extensive testing we've been through, and we actually have the backlog, right? So as we build vehicles, those will immediately be sold and allocated to some of our existing customers.
In terms of validation of the platform, I think I love this page because it really shows kind of all the testing and all the validation we've had from, you know, pretty tremendous parts of the U.S. government and and state governments. But the first of our vehicles were delivered the middle of last year to NASA. They're gonna be used in the Artemis missions for taking the launch or taking the astronauts to the launch pad. So that's pretty powerful. Getting the NASA stamp of approval on our vehicles really opened up the door for a lot of all of the additional government work on this page. We were able to sell, fortunate to sell to the U.S. Army. They were looking at a light tactical vehicle that could be used and tested. They've been...
Had this vehicle driven over 10,000 miles at this stage in testing and trying to break it. You know, as Tony likes to say, "We test, you know, we test to break, so we know the maximum, you know, that a vehicle can withstand, and then we can continue to improve that vehicle and improve the components that might have broken." 'Cause once you've built to military grade, it's much easier to reduce, to ultimately get to consumer, if that's where we want to proceed, or get to commercial level grade. And if you build to the max, then you have a lot of flexibility to actually kind of to adjust that at a lower cost if you choose to. On the DoD battery contract side, we're in phase three of that program now. We're even recognizing revenue.
We're working against four other, you know, battery technology companies that are being evaluated by the U.S. Department of Defense around standardization of battery technology in the military. So that's really exciting. We, you know, we've continued to advance in that, and we're competing with the likes of Lucid and GM Defense and others, lesser knowns, but it shows you that we're punching way above our weight in terms of a small company. And then recently, we delivered to the United States Postal Service, six vehicles that are in long-term testing with them as they look at their, you know, $80+ billion electrification program across the Postal Service, and I'll talk more about that, on some of the following slides. So here, the Postal Service is really important from a...
When you think about a use case and using, again, my example of technology-enabled changes to vehicle. So traditionally, you know, just a couple of stats, on average, the Postal Service actually runs one of the largest fleets in the world, and on average, those fleets for the Postal Service are about 25+ years old. So there's very old, dated, and inefficient technology and mobility for our Postal Service workers. And so they have made a real strong push under Postmaster General DeJoy to electrify and improve that fleet. And so there's starting to be, you know, substantial bites on that....
But what we offered that was different, and after the Postal Service tested our left-hand drive vehicles in the fall, and then bought these six vehicles just recently that were delivered, we were able to very quickly swap the steering wheel from left-hand drive, traditional, right, vehicles in the U.S., to right-hand drive, that are used by half of the fleet for the Postal Service. Traditional automotive makers will not make the investment to change their mechanical steering wheel to move from left-hand drive to right-hand drive. The market's just not big enough. It's just not worth the investment. And this is something that we were able to kind of pretty seamlessly make that shift, deliver right-hand drive in compliance homologated vehicles to the U.S. Postal Service, that are now delivering mail out in Atlanta.
And then what we believe that gives us the opportunity for us to be a real player in the next RFP that the Postal Service puts out. So we think that's pretty powerful demonstration of our, of our technology, and how it can be applied to something that increases our TAM, that total addressable market, into something that we were not really anticipating to do initially with that technology. And then once again, we have part of our team over in the U.K. right now. We can take this exact same, you know, case from the Postal Service and apply it to the U.K. market or other right-hand drive markets globally.
U.K., other former, you know, British colonies where they're right-hand drive, and so that's also a very exciting opportunity for us as we think about building, continuing to build on our customer backlog, to be able to take something that we've sold, that we quickly modified, you know, creates a huge opportunity in the U.S., but also creates some pretty exciting international opportunities. We've also. We announced a couple of years ago, our commitment and our kind of strategic partnership with Walmart. We're continuing to have, you know, a substantial amount of dialogue with Walmart. We've gone through a couple of rounds of testing with about over 10,000 miles of testing, and I think about 5,000 deliveries at this point, where, you know, where they are evaluating electrifying their last mile delivery fleet.
And so they're very committed to this. You know, they're very focused on, you know, being a strong competitor and a winner with Amazon, and they look at their footprint, their physical footprint as a competitive advantage. And so they don't necessarily need an oversized, you know, 500 cubic foot vehicle. They can work very, very efficiently in a smaller scale than that, and they've been working with us on the 130, the 190, potential other options, that will then feather into their fleet as they continue to electrify parts of their fleet. So that's a really—continues to be a really exciting partnership, and we're hopeful to continue to advance that in the second half of this year. I mentioned we wanted to control IP.
We also want to control, and we are controlling manufacturing. This is our facility, our manufacturing facility in Oklahoma City. It's our final assembly, where we've invested a lot of money moving all of our tooling equipment and continue to add automation into this facility. We've made substantial progress, and are continuing to ramp up different areas of that facility to get to our focus in manufacturing readiness goals. So this is not an easy task. Setting up manufacturing from the ground up is not easy. We've owned this facility or controlled this facility for approximately one year now, and we've been able to build some of our initial vehicles here.
Obviously, the key in the near term for us is to continue to ramp up production at this facility, and that's dependent on two things. One, continue to add automation at this facility and bring the lines up, you know, at scale. And two, harmonizing our supply chain. 'Cause obviously, just because you have manufacturing readiness doesn't mean that you can actually build vehicles, 'cause you have to have all your parts. And as I mentioned earlier in these slides, we've been very focused on harmonizing, and that's a component of reopening supply chain with all of our suppliers, but also resourcing some of that supply chain to different geographies.
Because the last handful of years since COVID, many elements of the supply chain globally, and then, like, the de-globalization we're going through, it's a very complex process, and it's something we continue to battle through. We're making substantial progress, but it takes time to get this right and to do it the right way. As Tony described in our Q4 earnings call, you know, we're not. I think it's a, the wrong metric to say a company is gonna be successful by just producing units. We've seen that time and time again, that'd be a failure. If you're just producing units at any cost, that is not a path to profitability, and it's not sustainable.
Doing it the right way, doing it the thoughtful way, and making sure that you have your whole system up and running at small scale first, and then being able to go back and continue to work with your suppliers to optimize, that's the way you ultimately win, and you bring a car company and a OEM like us, you know, up to scale and up to profitability. So I think it's gonna continue to be bumpy quarter to quarter. We had our first deliveries at the end of last year. Q1, we didn't have the deliveries we wanted. We've now had the deliveries of some of the Postal Service vehicles this quarter.
There are gonna be other things that are happening throughout the year, but it's very difficult for us to forecast that with precision because it's a very, you know, complicated Rubik's cube that we're working through. But we are making consistent and steady progress. On the right side, we have the Pryor facility where we control our—we have our Manz line. I was actually out there last week. Really impressive facility that we can, you know, manufacture our battery modules. I mentioned we buy Panasonic cells. Those cells are delivered to this facility. It's about two hours outside of OKC, and the Manz line manufactures the battery modules which are the bottom right corner.
You can see the little circular places in the module are where the cells go, and ultimately, that make turns into a 5 kWh brick. And that brick makes up one of 16 modules that go into our battery system for the vehicle. It's an 80 kWh battery made up of 16 5 kWh modules. So again, yeah, proprietary design, we're obviously using the Panasonic cells that anyone can purchase, but it's our design, it's our software, and our, you know, back to my comment earlier about DoD, obviously, our technology is quite quite strong, otherwise we wouldn't be competing with the Department of Defense. So I think I'm gonna- I'll end there. I think I'm on time.
Some of our recent events and then, John, if you have questions, we can run through some of those.
Okay. Thank you very much, Greg. If you have a question, please type in the Q&A section, and I will present it to Greg. Firstly, I apologize, I got the ticker wrong. It is GOEV, all right?
No worries.
That was my blunder. I do want to go back to something you said in your prepared remarks about the potential to take this platform internationally. What are the pros and cons of that, making that move? It seems like the EV market might be a little bit, well, why don't you fill in the blanks there?
Yeah, so I think, you know... Look, Tony, and so in Tony's days at Solera, where he built a, you know, a, I don't know, it was like a $7- to 8- or 9 billion company, he, he operated out of 90 countries. And I think he knows, he knows how to build an international business. So when we thought about, for example, our capacity at OKC, we were not-- we can right now manufacture our multipurpose platforms, where I mentioned we have 70% of our, you know, 70% of our critical systems, 60% of the BOM. We can manufacture today at a much higher rate than we can in the rest of the facility, and that was by design. And the design was that we could actually manufacture those drivable platforms and export them to other markets where we could do final assembly.
And so we've been contemplating, and it's not gonna evidence itself in the immediate term, but over time, initially we'll sell the full vehicles, but we do want to set up manufacturing in international locations. And because much of our IP is in that MPP1, we wanna maintain control of that IP in the U.S., and then ultimately be able to, you know, do some of the final assembly in other geographies. Now, depending on the geography, you might have a little, you know, there's different strategies around that.
That's also one of the reasons that the FTZ, the Foreign Trade Zone, was so important for us, because you do get, at least to the extent you are still sourcing international components that are subject to tariff and duties, you get some really strong financial benefits by, through those international sales. 'Cause you get a full write, you know, basically a full credit for those costs, those taxes. And, to the extent it's U.S., right, through the FTZ, you actually get a deferral until the final sale. So in either case, it's pretty powerful economics, and it's always been part of our plan to be able to export some of this technology into friendly markets.
That's great. I'm gonna go to the audience here. First question is: "Are the LDV 130 and 190 fully certified in the U.S.?
Yes, they are.
Okay. "Are customer production orders currently underway?" I think you've kind of answered... Or talked to them.
Yes. Yeah.
Yeah, yeah. Okay. "Would you say the company—Where would you say the company is at regarding having the process, parts, and manufacturing ability, et cetera, currently at 50%-75%? When do you estimate close to 100% to start ramping up production?
Yeah, look, it's very difficult to answer. It's very difficult for me to answer that, 'cause I'm not sitting on the front line with our purchasing group that's kind of, you know, working through those challenges every day. So I think it depends on the component. I would say that we've been thoughtful about the staging of what we can build when, so we're not subject to the last component that stops us from building, but it is complicated. So we think a very high level. You have the MPP1, then you have everything else, and we've made a lot of progress on, you know, both components, but we're slightly further ahead, probably on the MPP1 than on the cabin. So, but I can't...
On a percentage basis or on some sort of, you know, metric, it's very difficult to answer to that level of precision right now. What I'd say is we're making steady progress. You know, our suppliers have been very supportive, some of them more so than others. And then in terms of the resourcing element in certain geographies, that adds on a different level of complexity in terms of how you stage some of your parts and maybe make that adjustment over time. It's not something we have to do day one, but it's something we have to plan for.
Okay. I know we're at the end, but I wanna get Susan's question in, because she caught me on the ticker. "Can you talk about the Arrival manufacturing equipment?
Oh, yeah, yeah, I didn't mention that. So we've purchased a lot of the Arrival assets in both the U.S. And Arrival was an unfortunate situation. They mistimed and invested in very advanced robotics equipment, automation equipment, but they didn't have their product finalized. So then they got caught, obviously, in this market downturn that we've all been living through. But we were so fortunate to be able to pull some of their, you know, I would say a lot of the robotics equipment, other things that we can use in our facility out at a very attractive price, both for their local facilities that I think were on the East Coast, as well as a lot of their equipment that was in the U.K.
All of that equipment has been either now transported or is in the process of being transported and assembled in our facilities in Oklahoma and Pryor and in Oklahoma City. We think it's a win, but it's you know, unfortunate that you know, we never wanna see anybody in the industry go down, and that was an unfortunate one.
Okay, Greg, we are out of time. I appreciate the presentation and taking of the questions. Thank you for presenting at the Sidoti & Company Conference. Do you have any final remarks?
No, look, we look forward to continuing the dialogue with all of our existing shareholders. Those of you that are new, please continue to do research, and we're available for any questions, and hopefully, we gave you a good introduction here.
Great. Thank you, gentlemen.
Thank you.
Have a great day.
Great. Thank you.
Thank you.
All right, bye-bye.