our access to components or result in unfavorable changes to cost. These macroeconomic and industry trends have had,and will likely continue to have, an impact on the pricing of, and order rate for our vehicles, and in turn our operating margin.Changes in government and economic incentives or tariffs may also impact our sales, cost structure and the competitivelandscape. We will continue to adjust accordingly to such developments, and we believe our ongoing cost reduction, includingimproved production innovation and efficiency at our newest factories and lower logistics costs, and focus on operatingleverage will continue to benefit us in relation to our competitors, while our new products will help enable future growth.As our production increases, we must work constantly to similarly increase vehicle delivery capability so that it does notbecome a bottleneck on our total deliveries. We are also committed to reducing the percentage of vehicles delivered in the thirdmonth of each quarter, which will help to reduce the cost per vehicle. As we expand our manufacturing operations globally, wewill also have to continue to increase and staff our delivery, servicing and charging infrastructure accordingly, maintain ourvehicle reliability and optimize our Supercharger locations to ensure cost effectiveness and customer satisfaction. In particular,as other automotive manufacturers have announced their adoption of the North American Charging Standard (“NACS”) andagreements with us to utilize our Superchargers, we must correspondingly expand our network in order to ensure adequateavailability to meet customer demands. We also remain focused on continued enhancements of the capability and efficiency ofour servicing operations.27