During the August 23 conference call, Zoox Optics disclosed that the current material supply is experiencing a tight situation. This is attributed to a sudden surge in downstream demand, compounded by delays in upstream production expansion. Although prices for certain materials have risen, the company's main products have seen only limited price increases. This is largely due to the robustness of existing contracts and the price advantages derived from a large volume of orders. Regarding subsequent customer deliveries, the company's product price reductions have been reasonable and measured, contrary to the steep declines rumored in the market. Zoox Optics is effectively managing costs and enhancing overall gross margins through technological advancements, such as increasing the proportion of silicon photonics and improving yield rates. Additionally, the launch of new products in 2027 is expected to further bolster these efforts.
