REE Automotive Ltd. (Nasdaq: REE) (“REE” or the “Company”), an
automotive technology company and provider of full by-wire electric
trucks and platforms, today announced financial results for the
three months ended June 30, 2024 alongside significant updates.
“The past few months have been pivotal for REE,
marking key milestones we’ve worked toward for years. Our strategic
manufacturing agreement with Motherson Group (“Motherson”), a
global leader in engineering and automotive supply, is
transformational, which we believe will enable us to scale faster
while avoiding common operational challenges faced by others in the
EV space,” said Daniel Barel, Co-founder and CEO of REE. “We
believe our product offering is the best in an underserved market,
and demand continues to grow from fleets and OEMs. With our recent
investment round, our funding is solid, and we’ve begun U.S.
production of our P7 line with Roush. We’re executing our strategy,
focusing on technology leadership and cost reduction. I’m grateful
to Motherson, M&G, and our long-term investors for their
support, and to our global teams for their dedication.”
Recent Highlights:
Operations:
- Strategic partnership with
Motherson to allow faster and more stable
production scaleup alongside improvement to working
capital. REE will leverage the extensive
experience and capabilities of Motherson, a global engineering and
manufacturing specialist and one of the world’s leading automotive
suppliers. For FY24, Motherson achieved gross revenue of $17.2
billion. Motherson will manage sourcing and supply chain of all
production parts and support the assembly of the REEcorner® and REE
P7 electric trucks, the first full by-wire (“XBW”), software-driven
certified medium duty electric truck available on the market today.
The collaboration with Motherson is expected to drive operational
and manufacturing improvements to REE’s production line, supply
chain management, lower bill of materials (BOM), improved
productivity and cost structure.
- Contract
manufacturing kickoff
with Roush for full
vehicle assembly for North America.
During Q2 2024 REE signed a contract with Roush, a leading global
product development supplier operating across more than 30
countries and subsequent to quarter end the Company has kicked off
production and is preparing Roush’s Michigan based facility to
begin assembly of Powered by REE vehicles in Q4 2024. Roush will be
supported by a joint Motherson and REE team, who will be
responsible for quality checks, logistics and testing. REE
will continue to manufacture its proprietary REEcorner® technology
in its Coventry Integration Center in the UK where it already
kicked off REEcorner production.
- Production plan
updates to address strong customer pull and
capitalize on
savings and
efficiencies. The strategic supply chain management
agreement with Motherson and the U.S. production kickoff at Roush,
are expected to materially accelerate our ability to service
customers at scale. Given the unmet market need and customer
feedback on our superior product and technology we anticipate
significant order growth. Now that we have secured the capital
required for production, the execution of the strategic agreement
with Motherson and the production kickoff at Roush, we are updating
our production plan to start deliveries in 2025 in order to utilize
our renewed capabilities while addressing the strong customer-pull
we see and to capitalize on the significant saving and efficiencies
our collaboration with Motherson is expected to enable. We believe
the revised production and revenue plan will benefit our ability to
address larger follow-on orders from fleets and OEMs and, coupled
with the expected improved unit costs, accelerate the road to
meaningful free-cash flow generation.
Business:
- Orderbook increased by 15%
QoQ, and by 289%
YoY, valued today at
approximately $60
million representing more than 400 P7 EVs ordered
from 24 different customers across North America. This diverse
orderbook allows REE access to more than 200 fleets. In addition,
50,000+ government and education entities can now purchase REE’s
software-defined electric trucks through a 4 years Sourcewell
contract. We continue to receive strong positive customer feedback
from our demo program as we continue to deliver more and more P7-C
demo trucks to our dealers across the U.S.
- REEcorner business line
continues to show strong potential with
now three OEMs
considering integrating our
REEcorners. We continue to see
growing interest in our software defined technology by traditional
and new OEMs considering integrating our REEcorners into their
product line-ups thus gaining access to software-defined EV
technology. We believe that, although this is a long-cycle
business, continued expansion of our market leadership and
continued execution on our strategic vision will result in the
opportunity to license our XBW technology across vehicle classes
and categories, making REE the “intel Inside” of automotive.
- REE’s authorized dealer
network, one of North America’s largest of pure commercial EVs,
continues to expand now covering 78
sales and service points. This is a key strength
for our fleet-customers who seek nationwide service and
support.
- Programs
are ongoing with Penske
and U-Haul. During Q2 2024, REE
delivered a P7-C upfitted with a 16-foot Wabash DuraPlate® body to
Penske Trucks Leasing which began to offer Powered by REE electric
vehicles to its customers for demos and orders across North
America. Concurrently, U-Haul received the first P7-S platform and
is evaluating it as the first solution to support the
electrification of its fleet.
- Airbus
autonomous program. Airbus has fitted Powered by
REE® truck with basic A350 airliner controls to demonstrate the
first ever an autonomous drive on runways in France as part of
Airbus’ three-year "Optimate" project. According to Airbus, they
expect to see this technology tested in a full flight within one
year in the A350 with more platforms to come. This project further
improves the future of aviation, airport ground traffic management
and safety, and REE’s technology is in its core.
Financials:
- Secured
$45.35
million (gross)
registered direct offering led by
M&G and Motherson
priced at $4.122 per share, a 39% premium to the closing price on
September 13, 2024.
- Second quarter
net loss narrowed by 57% QoQ to $10.8
million compared to $25.2 million in Q1 2024 and narrowed
by 59% year-over-year (YoY) compared to $26.2 million in Q2 2023.
The QoQ decrease was mainly driven by an increase in recognition of
grants from the UK government, income from remeasurement of
warrants and derivative liabilities, lower engineering costs
related to the development of the P7 EV Platform, a decrease in
income tax expenses as well as other operational efficiencies. The
YoY decrease was mainly driven by an increase in recognition of
grants from the UK government, income from remeasurement of
warrants and derivative liabilities, lower engineering costs
related to the development of the P7 EV Platform, lower share-based
compensation expense as well as other operational
efficiencies.
-
Non-generally accepted
accounting principles
(non-GAAP)
net loss in the quarter narrowed
by
41% QoQ
to
$12.4
million compared to $21.2 million in Q1 2024 and
narrowed by 43% from $22.0 million in Q2 2023.
- Free cash flow
(FCF) burn continued
to narrow in
Q2 2024, with
a 19%
reduction from
Q1
2024, consistent
with the trend in full year 2023 when REE reported a 25% YoY
decrease in FCF burn.
- REE ended Q2 2024 with
liquidity of $60.5 million comprised of cash and cash
equivalents and short-term investments, inclusive of a $15 million
credit facility.
- REE raised
approximately
$1.4
million in proceeds between April 1, 2024 and
September 26, 2024 by issuing 263,455 Class A Ordinary Shares under
the At the Market Offering Agreement with H.C. Wainwright &
Co., LLC.
A reconciliation of GAAP to non-GAAP measures
has been provided in the financial statement tables included in
this press release. An explanation of these measures is also
included below under the heading “Non-GAAP Financial Measures.”
REE AUTOMOTIVE LTD.Condensed
Consolidated Statements of Comprehensive LossU.S.
dollars in thousands (except share and per share data)
(Unaudited)
|
Three Months Ended |
|
Six Months Ended |
|
June 30,2024 |
|
March 31,2024 |
|
June 30,2023 |
|
June 30,2024 |
|
June 30,2023 |
Revenues |
$ |
— |
|
|
$ |
160 |
|
|
$ |
943 |
|
|
$ |
160 |
|
|
$ |
943 |
|
Cost
of revenues |
|
651 |
|
|
|
804 |
|
|
|
943 |
|
|
|
1,455 |
|
|
|
943 |
|
Gross loss |
$ |
(651 |
) |
|
$ |
(644 |
) |
|
$ |
— |
|
|
$ |
(1,295 |
) |
|
$ |
— |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
Research and development expenses, net |
|
8,063 |
|
|
|
15,358 |
|
|
|
19,337 |
|
|
|
23,421 |
|
|
|
38,211 |
|
Selling, general and administrative expenses |
|
6,931 |
|
|
|
7,170 |
|
|
|
8,087 |
|
|
|
14,101 |
|
|
|
18,930 |
|
Total
operating expenses |
|
14,994 |
|
|
|
22,528 |
|
|
|
27,424 |
|
|
|
37,522 |
|
|
|
57,141 |
|
Operating loss |
$ |
(15,645 |
) |
|
$ |
(23,172 |
) |
|
$ |
(27,424 |
) |
|
$ |
(38,817 |
) |
|
$ |
(57,141 |
) |
Income (loss) from warrants remeasurement |
|
2,586 |
|
|
|
(706 |
) |
|
|
— |
|
|
|
1,880 |
|
|
|
— |
|
Financial income, net |
|
2,130 |
|
|
|
131 |
|
|
|
1,076 |
|
|
|
2,261 |
|
|
|
2,137 |
|
Net
loss before income tax |
|
(10,929 |
) |
|
|
(23,747 |
) |
|
|
(26,348 |
) |
|
|
(34,676 |
) |
|
|
(55,004 |
) |
Income tax expense (income) |
|
(142 |
) |
|
|
1,436 |
|
|
|
(137 |
) |
|
|
1,294 |
|
|
|
(171 |
) |
Net
loss |
$ |
(10,787 |
) |
|
$ |
(25,183 |
) |
|
$ |
(26,211 |
) |
|
$ |
(35,970 |
) |
|
$ |
(54,833 |
) |
Net comprehensive loss |
$ |
(10,787 |
) |
|
$ |
(25,183 |
) |
|
$ |
(26,211 |
) |
|
$ |
(35,970 |
) |
|
$ |
(54,833 |
) |
Basic and diluted net loss per Class A ordinary share
(1) |
$ |
(0.84 |
) |
|
$ |
(2.28 |
) |
|
$ |
(2.61 |
) |
|
$ |
(3.01 |
) |
|
$ |
(5.49 |
) |
Weighted average number of ordinary shares used in computing basic
and diluted net loss per share (1) |
|
12,844,769 |
|
|
|
11,023,880 |
|
|
|
10,031,625 |
|
|
|
11,934,325 |
|
|
|
9,996,616 |
|
(1) On October 18, 2023, the Company
effected a reverse share split of the Company’s Class A ordinary
shares and Class B ordinary shares at the ratio of 1-for-30. As a
result, all Ordinary Class A shares, Ordinary Class B shares,
options for Ordinary Class A Shares, exercise price and net loss
per share amounts were adjusted retroactively for all periods
presented above as if the stock reverse split had been in effect as
of the date of these periods. For further details, see the
Company’s 20-F filed with SEC on March 27, 2024.
REE AUTOMOTIVE LTD.Condensed
Consolidated Balance SheetsU.S. dollars in
thousands (except share and per share data)
|
June 30,2024 |
|
December 31,2023 |
|
(Unaudited) |
|
|
ASSETS |
|
|
|
CURRENT ASSETS: |
|
|
|
Cash and cash equivalents |
$ |
36,274 |
|
|
$ |
41,232 |
|
Short-term investments |
|
24,227 |
|
|
|
44,395 |
|
Accounts receivable |
|
— |
|
|
|
455 |
|
Inventory |
|
2,048 |
|
|
|
463 |
|
Other accounts receivable and prepaid expenses |
|
12,435 |
|
|
|
6,959 |
|
Total current assets |
|
74,984 |
|
|
|
93,504 |
|
|
|
|
|
NON-CURRENT ASSETS: |
|
|
|
Non-current restricted cash |
|
2,481 |
|
|
|
3,008 |
|
Other accounts receivable and prepaid expenses |
|
2,224 |
|
|
|
2,871 |
|
Operating lease right-of-use assets |
|
19,826 |
|
|
|
21,418 |
|
Property and equipment, net |
|
17,407 |
|
|
|
17,099 |
|
Total non-current assets |
|
41,938 |
|
|
|
44,396 |
|
TOTAL
ASSETS |
$ |
116,922 |
|
|
$ |
137,900 |
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
|
|
CURRENT LIABILITIES: |
|
|
|
Short term loan |
$ |
15,015 |
|
|
$ |
15,019 |
|
Trade payables |
|
4,209 |
|
|
|
3,703 |
|
Other accounts payable and accrued expenses |
|
11,132 |
|
|
|
14,046 |
|
Operating lease liabilities |
|
3,640 |
|
|
|
2,411 |
|
Total current liabilities |
|
33,996 |
|
|
|
35,179 |
|
|
|
|
|
NON-CURRENT LIABILITIES: |
|
|
|
Warrants liability |
|
1,520 |
|
|
|
3,400 |
|
Convertible promissory notes |
|
4,019 |
|
|
|
4,806 |
|
Deferred tax liability |
|
436 |
|
|
|
— |
|
Operating lease liabilities |
|
14,068 |
|
|
|
16,440 |
|
Total non-current
liabilities |
|
20,043 |
|
|
|
24,646 |
|
TOTAL
LIABILITIES |
|
54,039 |
|
|
|
59,825 |
|
|
|
|
|
SHAREHOLDERS’ EQUITY: |
|
|
|
Ordinary shares of no par value |
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
934,989 |
|
|
|
914,211 |
|
Accumulated deficit |
|
(872,106 |
) |
|
|
(836,136 |
) |
Total shareholders’
equity |
|
62,883 |
|
|
|
78,075 |
|
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY |
$ |
116,922 |
|
|
$ |
137,900 |
|
REE AUTOMOTIVE LTD.Condensed
Consolidated Statements of Cash FlowsU.S. dollars
in thousands (Unaudited)
|
Six Months Ended |
|
June 30,2024 |
|
June 30,2023 |
Cash flows from operating
activities: |
|
|
|
|
|
|
|
Net loss |
$ |
(35,970 |
) |
|
$ |
(54,833 |
) |
Adjustments to reconcile net
loss to net cash used in operating activities: |
|
|
|
Depreciation |
|
1,608 |
|
|
|
1,085 |
|
Accretion income on short-term investments |
|
— |
|
|
|
(588 |
) |
Share-based compensation |
|
5,638 |
|
|
|
8,870 |
|
Change in fair value of warrants liability |
|
(1,880 |
) |
|
|
— |
|
Change in fair value of derivative liability |
|
(1,448 |
) |
|
|
— |
|
Amortization of discount of convertible promissory note |
|
224 |
|
|
|
— |
|
Interest expenses |
|
433 |
|
|
|
— |
|
Decrease in accrued interest on short-term investments |
|
168 |
|
|
|
333 |
|
Increase in inventory |
|
(1,585 |
) |
|
|
— |
|
Decrease in accounts receivable |
|
455 |
|
|
|
— |
|
Increase in other accounts receivable and prepaid expenses |
|
(4,829 |
) |
|
|
(205 |
) |
Change in operating lease right-of-use assets and liabilities,
net |
|
449 |
|
|
|
176 |
|
Increase (decrease) in trade payables |
|
506 |
|
|
|
(197 |
) |
Decrease in other accounts payable and accrued expenses |
|
(2,237 |
) |
|
|
(256 |
) |
Increase in deferred tax liability |
|
436 |
|
|
|
— |
|
Decrease in deferred revenue |
|
— |
|
|
|
(943 |
) |
Other |
|
— |
|
|
|
103 |
|
Net cash used in operating
activities |
|
(38,032 |
) |
|
|
(46,455 |
) |
|
|
|
|
Cash flows from investing
activities: |
|
|
|
|
|
|
|
Purchase of property and
equipment |
|
(1,916 |
) |
|
|
(2,743 |
) |
Purchases of short-term
investments |
|
— |
|
|
|
(66,864 |
) |
Proceeds from short-term
investments |
|
20,000 |
|
|
|
96,516 |
|
Net cash provided by investing
activities |
|
18,084 |
|
|
|
26,909 |
|
|
|
|
|
Cash flows from financing
activities: |
|
|
|
|
|
|
|
Proceeds from issuance of
Ordinary shares, net |
|
14,463 |
|
|
|
— |
|
Proceeds from exercise of
options |
|
— |
|
|
|
119 |
|
Repayment of short term
loan |
|
(15,000 |
) |
|
|
— |
|
Proceeds from short term
loan |
|
15,000 |
|
|
|
— |
|
Net cash provided by financing
activities |
|
14,463 |
|
|
|
119 |
|
|
|
|
|
Decrease in cash, cash
equivalents and restricted cash |
|
(5,485 |
) |
|
|
(19,427 |
) |
Cash, cash equivalents and
restricted cash at beginning of year |
|
44,240 |
|
|
|
59,925 |
|
Cash, cash equivalents
and restricted cash at end of period |
$ |
38,755 |
|
|
$ |
40,498 |
|
|
|
|
|
Reconciliation of GAAP Financial Metrics to
Non-GAAPU.S. dollars in thousands (except share
and per share data)(Unaudited)
Reconciliation of Net Loss to Adjusted
EBITDA
|
Three Months Ended |
|
Six Months Ended |
|
Jun 30,2024 |
|
Mar 31,2024 |
|
Jun 30,2023 |
|
Jun 30,2024 |
|
Jun 30,2023 |
Net Loss on a GAAP Basis |
$ |
(10,787 |
) |
|
$ |
(25,183 |
) |
|
$ |
(26,211 |
) |
|
$ |
(35,970 |
) |
|
$ |
(54,833 |
) |
Financial income, net |
|
(2,130 |
) |
|
|
(131 |
) |
|
|
(1,076 |
) |
|
|
(2,261 |
) |
|
|
(2,137 |
) |
Income tax expense (income) |
|
(142 |
) |
|
|
1,436 |
|
|
|
(137 |
) |
|
|
1,294 |
|
|
|
(171 |
) |
Loss (income) from warrants remeasurement |
|
(2,586 |
) |
|
|
706 |
|
|
|
— |
|
|
|
(1,880 |
) |
|
|
— |
|
Depreciation, amortization and accretion |
|
1,633 |
|
|
|
1,640 |
|
|
|
1,235 |
|
|
|
3,273 |
|
|
|
2,295 |
|
Share-based compensation |
|
2,815 |
|
|
|
2,823 |
|
|
|
4,212 |
|
|
|
5,638 |
|
|
|
8,870 |
|
Adjusted
EBITDA |
$ |
(11,197 |
) |
|
$ |
(18,709 |
) |
|
$ |
(21,977 |
) |
|
$ |
(29,906 |
) |
|
$ |
(45,976 |
) |
Reconciliation of net cash used in operating activities
to Free Cash Flow
|
Three Months Ended |
|
Six Months Ended |
|
Jun 30,2024 |
|
Mar 31,2024 |
|
Jun 30,2023 |
|
Jun 30,2024 |
|
Jun 30,2023 |
Net cash used in operating activities |
(16,807 |
) |
|
(21,225 |
) |
|
(20,025 |
) |
|
(38,032 |
) |
|
(46,455 |
) |
Purchase of property and equipment |
(1,051 |
) |
|
(865 |
) |
|
(1,474 |
) |
|
(1,916 |
) |
|
(2,743 |
) |
Free Cash
Flow |
(17,858 |
) |
|
(22,090 |
) |
|
(21,499 |
) |
|
(39,948 |
) |
|
(49,198 |
) |
Reconciliation of GAAP operating
expenses to Non-GAAP operating
expenses; GAAP net loss to Non-GAAP net loss, and presentation of
Non-GAAP net loss per Share, basic and diluted:
|
Three Months Ended |
|
Six Months Ended |
|
Jun 30,2024 |
|
Mar 31,2024 |
|
Jun 30,2023 |
|
Jun 30,2024 |
|
Jun 30,2023 |
GAAP operating expenses |
|
14,994 |
|
|
|
22,528 |
|
|
|
27,424 |
|
|
|
37,522 |
|
|
|
57,141 |
|
Share-based compensation |
|
(2,815 |
) |
|
|
(2,823 |
) |
|
|
(4,212 |
) |
|
|
(5,638 |
) |
|
|
(8,870 |
) |
Non-GAAP operating
expenses |
|
12,179 |
|
|
|
19,705 |
|
|
|
23,212 |
|
|
|
31,884 |
|
|
|
48,271 |
|
|
|
|
|
|
|
|
|
|
|
GAAP net
loss |
|
(10,787 |
) |
|
|
(25,183 |
) |
|
|
(26,211 |
) |
|
|
(35,970 |
) |
|
|
(54,833 |
) |
Loss (income) from warrants remeasurement |
|
(2,586 |
) |
|
|
706 |
|
|
|
— |
|
|
|
(1,880 |
) |
|
|
— |
|
Income (loss) from derivatives remeasurement (2) |
|
(1,889 |
) |
|
|
441 |
|
|
|
— |
|
|
|
(1,448 |
) |
|
|
— |
|
Share-based compensation |
|
2,815 |
|
|
|
2,823 |
|
|
|
4,212 |
|
|
|
5,638 |
|
|
|
8,870 |
|
Non-GAAP net
loss |
$ |
(12,447 |
) |
|
$ |
(21,213 |
) |
|
$ |
(21,999 |
) |
|
$ |
(33,660 |
) |
|
$ |
(45,963 |
) |
|
|
|
|
|
|
|
|
|
|
Weighted average number of ordinary shares used in computing basic
and diluted net loss per share (1) |
|
12,844,769 |
|
|
|
11,023,880 |
|
|
|
10,031,625 |
|
|
|
11,934,325 |
|
|
|
9,996,616 |
|
Non-GAAP basic and
diluted net loss per share (1) (2) |
$ |
(0.97 |
) |
|
$ |
(1.92 |
) |
|
$ |
(2.19 |
) |
|
$ |
(2.82 |
) |
|
$ |
(4.60 |
) |
(1) On October 18, 2023, the Company
effected a reverse share split of the Company’s Class A ordinary
shares and Class B ordinary shares at the ratio of 1-for-30. As a
result, all Ordinary Class A shares, Ordinary Class B shares,
options for Ordinary Class A Shares, exercise price and net loss
per share amounts were adjusted retroactively for all periods
presented above as if the stock reverse split had been in effect as
of the date of these periods. For further details, see the
Company’s 20-F filed with SEC on March 27, 2024.
(2) Non-GAAP net loss and non-GAAP net loss per
share for the three months ended March 31, 2024 were retroactively
adjusted from $21,654 to $21,213 and from $1.96 to $1.92,
respectively, to reflect the adjustment of Income from derivatives
remeasurement to non-GAAP net loss.
Non-GAAP Financial Measures
We have provided in this release financial
information that has not been prepared in accordance with GAAP.
These non-GAAP financial measures are not based on any standardized
methodology prescribed by GAAP and are not necessarily comparable
to similar measures presented by other companies. We use these
non-GAAP financial measures internally in analyzing our financial
results and believe they are useful to investors, as a supplement
to GAAP measures, in evaluating our ongoing operational
performance. We believe that the use of these non-GAAP financial
measures provides an additional tool for investors to use in
evaluating ongoing operating results and trends and in comparing
our financial results with peer companies, many of which present
similar non-GAAP financial measures to investors.
Non-GAAP financial measures should not be
considered in isolation from, or as a substitute for, financial
information prepared in accordance with GAAP. Investors are
encouraged to review the reconciliation of these non-GAAP financial
measures to their most directly comparable GAAP financial measures
provided in the financial statement tables below.
We believe that adjusted EBITDA, non-GAAP net
loss, non-GAAP operating expenses, non-GAAP basic and diluted net
loss per share, reflect additional means of evaluating REE’s
ongoing operating results and trends. We believe that these
non-GAAP measures provide useful information about our operating
results, enhance the overall understanding of our past performance
and future prospects and allow for greater visibility with respect
to key metrics used by our management in its financial and
operational decision-making.
We believe that Free Cash Flow to be a liquidity
measure that provides useful information to management and
investors about the amount of cash used in our operational
activities and capital expenditures. Free Cash flow burn represents
the negative cash outflow used in our activities as explained
above.
To learn more about REE Automotive’s patented
technology and unique value proposition that positions the company
to break new ground in e-mobility, visit www.ree.auto.
About REE Automotive
REE Automotive (Nasdaq: REE) is an automotive
technology company that allows companies to build electric vehicles
of various shapes and sizes on their modular platforms. With
complete design freedom, vehicles Powered by REE® are equipped with
the revolutionary REEcorner®, which packs critical vehicle
components (steering, braking, suspension, powertrain and control)
into a single compact module positioned between the chassis and the
wheel. As the first company to FMVSS certify a full by-wire vehicle
in the U.S., REE’s proprietary by-wire technology for drive, steer
and brake control eliminates the need for mechanical connection.
Using four identical REEcorners® enables REE to make the industry’s
flattest EV platforms with more room for passengers, cargo and
batteries. REE platforms are future proofed, autonomous capable,
offer a low total cost of ownership (TCO), and drastically reduce
the time to market for fleets looking to electrify. To learn more
visit www.ree.auto.
Media Contact
Malory Van GuilderSkyya PR for REE Automotive+1
651-335-0585ree@skyya.com
Investor Contact
Dana RubinsteinChief Strategy Officer | REE
Automotiveinvestors@ree.auto
Caution About Forward-Looking Statements
This communication includes certain
forward-looking statements within the meaning of the “safe harbor”
provisions of the Private Securities Litigation Reform Act of 1995,
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements include, but are not limited to,
statements regarding REE or its management team’s expectations,
hopes, beliefs, intentions or strategies regarding the future. For
example, REE is using forward-looking statements when it discusses
its belief that the strategic manufacturing agreement with
Motherson will enable it to scale faster while avoiding common
operational challenges faced by start-ups, that it expects to start
U.S. production in Michigan with Roush as contract manufacturer for
full vehicle assembly in Q4 2024 and deliveries in 2025, its belief
that its product offering is the best in an underserved market, and
demand continues to grow from fleets and OEMs, that the
collaboration with Motherson is expected to drive operational and
manufacturing improvements to REE’s production line, supply chain
management, lower bill of materials (BOM), improved productivity
and cost structure, that the strategic supply chain management
agreement with Motherson and the U.S. production kickoff at Roush
are expected to materially accelerate its ability to service
customers at scale, its anticipation of significant order growth,
the update on its production plan and the timing thereof, its
belief that its continued expansion of its market leadership and
continued execution on its strategic vision will result in the
opportunity to license our XBW technology, making REE the “intel
Inside” of automotive and Airbus’ expectation to see Powered by
REE® tested in a full flight in 2 years in the A350 with more
platforms to come. In addition, any statements that refer to plans,
projections, forecasts or other characterizations of future events
or circumstances, including any underlying assumptions, are
forward-looking statements. The words “aim” “anticipate,” “appear,”
“approximate,” “believe,” “continue,” “could,” “estimate,”
“expect,” “foresee,” “intends,” “may,” “might,” “plan,” “possible,”
“potential,” “predict,” “project,” “seek,” “should,” “would”,
“designed,” “target” and similar expressions (or the negative
version of such words or expressions) may identify forward-looking
statements, but the absence of these words does not mean that a
statement is not forward-looking. All statements, other than
statements of historical facts, may be forward-looking statements.
Forward-looking statements in this communication may include, among
other things, statements about REE’s strategic and business plans,
technology, relationships and objectives, including its ability to
meet certification requirements, the impact of trends on and
interest in our business, or product, intellectual property, REE’s
expectation for growth, and its future results, operations and
financial performance and condition.
These forward-looking statements are based on
REE’s current expectations and assumptions about future events and
are based on currently available information as of the date of this
communication and current expectations, forecasts, and assumptions.
Although REE believes that the expectations reflected in
forward-looking statements are reasonable, such statements involve
an unknown number of risks, uncertainties, judgments, and other
factors that may cause our actual results, performance or
achievements to be materially different from any future results,
performance or achievements expressed or implied by forward-looking
statements. These factors are difficult to predict accurately and
may be beyond REE’s control. Forward-looking statements in this
communication speak only as of the date made and REE undertakes no
obligation to update its forward-looking statements, whether as a
result of new information, future developments or otherwise, should
circumstances change, except as otherwise required by securities
and other applicable laws. In light of these risks and
uncertainties, investors should keep in mind that results, events
or developments discussed in any forward-looking statement made in
this communication may not occur.
Uncertainties and risk factors that could affect
REE’s future performance and could cause actual results to differ
include, but are not limited to: REE’s ability to commercialize its
strategic plan, including its plan to successfully evaluate, obtain
regulatory approval, produce and market its P7 lineup; REE’s
ability to maintain and advance relationships with current Tier 1
suppliers and strategic partners; development of REE’s advanced
prototypes into marketable products; REE’s ability to grow and
scale manufacturing capacity through relationships with Tier 1
suppliers; REE’s estimates of unit sales, expenses and
profitability and underlying assumptions; REE’s reliance on its UK
Engineering Center of Excellence for the design, validation,
verification, testing and homologation of its products; REE’s
limited operating history; risks associated with building out of
REE’s supply chain; risks associated with plans for REE’s initial
commercial production; REE’s dependence on potential suppliers,
some of which will be single or limited source; development of the
market for commercial EVs; risks associated with data security
breach, failure of information security systems and privacy
concerns; risks related to lack of compliance with Nasdaq’s minimum
bid price requirement; future sales of our securities by existing
material shareholders or by us could cause the market price for the
Class A Ordinary Shares to decline; potential disruption of
shipping routes due to accidents, political events, international
hostilities and instability, piracy or acts by terrorists; intense
competition in the e-mobility space, including with competitors who
have significantly more resources; risks related to the fact that
REE is incorporated in Israel and governed by Israeli law; REE’s
ability to make continued investments in its platform; the impact
of the COVID-19 pandemic, interest rate changes, the ongoing
conflict between Ukraine and Russia and any other worldwide health
epidemics or outbreaks that may arise and adverse global
conditions, including macroeconomic and geopolitical uncertainty;
the global economic environment, the general market, political and
economic conditions in the countries in which we operate; the
ongoing military conflict in Israel; fluctuations in interest rates
and foreign exchange rates; the need to attract, train and retain
highly-skilled technical workforce; changes in laws and regulations
that impact REE; REE’s ability to enforce, protect and maintain
intellectual property rights; REE’s ability to retain engineers and
other highly qualified employees to further its goals; and other
risks and uncertainties set forth in the sections entitled “Risk
Factors” and “Cautionary Note Regarding Forward-Looking Statements”
in REE’s annual report filed with the U.S. Securities and Exchange
Commission (the “SEC”) on March 27, 2024 and in subsequent filings
with the SEC.
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