Q: How confident are you that you can achieve your projected hardware cost downs given inflationary pressures? And on the hardware maintenance front, how resilient is the stack against real-world field degradation? A: Chris Ermsten, Co-Founder and CEO: We continue to have confidence in our ability to achieve the targets for the cost of the hardware kit and its maintenance support to achieve our long-term economic objectives. We've been testing these units for months and have already begun reliability testing for third-generation components. A: David McDay, CFO: We are already building our second-generation kit, so we have a good handle on costs. While there are some headwinds, these kits are designed to last 1 million miles, so minor increases in component costs on a per-mile basis are not materially going to impact our gross margin projections.

Q: Can you help us quantify the current fleet size and the mix of Gen. 1 vs. Gen. 2 trucks? As you scale to more than 200 trucks by year-end, how should we think about that mix? A: Chris Ermsten, Co-Founder and CEO: Today, we have on the order of 25 trucks operating, and a handful of them are the new International trucks. We expect to grow that to 20 to 25 International trucks by the end of this quarter. By the end of the year, the vast majority, if not all, of the fleet will be either International or Volvo. We will start to phase out the Peterbilt trucks with an eye to reintroducing them with third-generation hardware in the future.

Q: How are customers thinking about why they are moving forward with autonomous technology? Is it to add capacity, better utilize assets, or lower driver costs? A: Chris Ermsten, Co-Founder and CEO: It's much more the first two. Every customer puts safety first and talks about the importance of their drivers. This technology will allow them to expand their business, increase utilization of their assets, and allow their human drivers to focus on where they have the most value. Customers that aren't using our technology in the next five years just won't be competitive in long haul.

Q: How are you thinking about Aurora's place in the AV ecosystem longer-term as OEMs like Volvo build out their own VaaS businesses? Do you care who you are selling to? A: Chris Ermsten, Co-Founder and CEO: We look at Volvo Autonomous Solutions as a Driver as a Service customer to us. We are excited for them to go out and serve customers and build their business. A: David McDay, CFO: Whether we are doing TAS or working with Volvo, we have gross margin targets. We look at the cost structure and necessary margins for each business holistically to ensure it matches our overall projections.

Q: On the Gen. 2 International truck launch, the video implied high visibility to the 20-25 trucks guided for Q3. Also, with Roush on track for 1,000-unit annual capacity by October, why wouldn't you exit the year with more than 200 commercial trucks? A: Chris Ermsten, Co-Founder and CEO: We have really good visibility on our access to trucks to support the 20-25 in the quarter. There is a ramp-up whenever you stand up a new manufacturing line, and we expect that to ramp in Q4 to full velocity. We are trying to provide what we think is reasonable guidance. A: David McDay, CFO: If we have the ability to build more, we have strong customer demand and will take advantage of it. But for right now, this is a good plan and our appropriate target. We have a handful of International trucks already operating driverless on multiple routes, and by the end of the quarter, we will have the highest number of dedicated commercial trucks we've had.

Q: Can you discuss the time to launch a new route? Do you expect that to continue to shrink? A: Chris Ermsten, Co-Founder and CEO: We focus on where customers want us to operate, which is driving route expansion. The cost and time for us to build new routes will continue to decrease. This is not a major cost driver for the business. We will start to pick up more routes as customer demand drives it through the back half of this year and in years going forward.

Q: How should we think about your ability and willingness to add trucks beyond 200 into '27 and beyond? How might that impact your cash use per quarter targets? A: Chris Ermsten, Co-Founder and CEO: In '27, it will be a transition year from primarily TAS to primarily DAS. We may add more trucks in '26 under the TAS business, which generates more revenue but at a lower margin. A: David McDay, CFO: We haven't provided guidance for 2027 cash use, but we will add additional cash units into 2027. It will be a customer-by-customer transition. We have shared before that we'd be willing

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