Demand for REE Automotive Full By-Wire EVs Continues to Grow as Orderbook Value Surpasses $50 Million
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Insights
The expansion of REE Automotive's dealer network and the growth of its order book to $50 million signify a strategic move to strengthen its market presence in North America. This is indicative of the increasing demand for electric vehicles (EVs) as businesses look to transition to more sustainable fleets. The partnership with Hackney also suggests REE's commitment to diversifying its product offerings to cater to specific industry needs, such as beverage and vending distribution. This could position REE favorably in niche markets that require specialized EV solutions.
From a market penetration standpoint, the inclusion of new dealers in strategic locations like Ontario, Alberta and Washington could leverage regional incentives to boost sales. These incentives are important in lowering the total cost of ownership for fleets, making the switch to electric more financially viable. The mention of federal and provincial incentives aligns with industry trends where government policies play a pivotal role in EV adoption.
The announcement of REE Automotive's order book surpassing $50 million is a significant milestone that reflects positively on the company's revenue prospects. Investors will likely view this as a positive indicator of the company's growth trajectory and ability to convert interest into tangible sales. The order book value is a key metric that can influence stock performance, as it provides a glimpse into future revenues and the company's operational efficiency.
However, it is essential to consider the capital expenditure associated with expanding the dealer network and the costs involved in forming partnerships with body builders like Hackney. Investors should weigh these expenses against the potential increase in sales volume and market share. Additionally, the certification of vehicles by FMVSS, CARB and EPA is a critical step in mitigating regulatory risk and ensuring compliance, which is reassuring from an investment standpoint.
REE Automotive's focus on developing a full by-wire electric chassis cab platform, such as the P7-C, is a testament to the evolving nature of the automotive industry, where modularity and adaptability are becoming increasingly important. The collaboration with body builders like Hackney to provide customized solutions highlights the importance of versatility in the EV market. This approach can lead to a competitive advantage as it meets the specific demands of various fleet operators.
The certifications by FMVSS, CARB and EPA not only ensure that the vehicles meet strict safety and environmental standards but also serve as a marketing tool to promote consumer confidence in the product. The integration of these certified vehicles into fleets is a critical step towards wider EV adoption and REE's progress in this area may serve as a benchmark for other players in the industry.
- REE’s authorized dealer network grows to 66 sales and service locations across the U.S. and Canada through 20 authorized dealers
- New dealers include Macnab EV Sales Corp., Pacific Mobility Group and Kaizen Automotive Group
- REE expands partnerships with leading body builders, adding Hackney, North American manufacturer of side load beverage and vending bodies, solutions to upfit REE’s P7-C chassis cab
TEL AVIV, Israel, March 27, 2024 (GLOBE NEWSWIRE) -- REE Automotive Ltd. (Nasdaq: REE), an automotive technology company and provider of full by-wire electric trucks and platforms, today announced key business updates, leading with the current order value book value surpassing
REE continues to grow its presence in Canada adding new dealers - Kaizen Automotive Group and Macnab EV Sales Corp – and one new dealer in Washington, Pacific Mobility Group, to its North American Authorized Dealer Network. All new dealers have placed orders for P7-C electric chassis cabs. The new Canadian dealers service Ontario and Alberta, where fleets can be eligible for both federal iMHZEV and provincial Go Electric incentives totaling up to
“We continue to see strong demand for our powered by REE electric trucks in North America and we are excited to welcome new dealers, growing our sales and service network to 66 locations in North America,” said Tali Miller, chief business officer at REE Automotive. “Now that our vehicles are FMVSS, CARB and EPA certified and more P7-C trucks are starting to arrive in North America, it is game on for us as we are able to showcase all that our vehicles have to offer by getting them in the hands of fleets. Together with our upfitting partners we are able to offer full vehicle solutions for multiple use cases and electrification needs that have not been able to be fulfilled.”
REE has also expanded its roster of partnerships with leading body builders by collaborating with Hackney, a North American manufacturer of side load beverage and vending bodies. Hackney’s solutions can integrate with the P7-C chassis cab, designed to allow fleet customers a reduced design time while still allowing for customization that fleets desire. Hackney and REE are actively welcoming orders from North American customers.
To learn more about REE Automotive’s patented technology and unique value proposition that position 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 fully 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 TCO, and drastically reduce the time to market for fleets looking to electrify. To learn more visit www.ree.auto.
Media Contact
Malory Van Guilder
Skyya PR for REE Automotive
+1 651-335-0585
ree@skyya.com
Investor Contact
Kamal Hamid
VP Investor Relations | REE Automotive
+1 303-670-7756
investors@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 that it and its upfitting partners are able to offer full vehicle solutions for multiple use cases and electrification needs that have not been able to be fulfilled and that Hackney’s solutions can integrate with the P7-C chassis cab, designed to allow fleet customers a reduced design time while still allowing for customization that fleets desire. 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 28, 2023 and in subsequent filings with the SEC.
FAQ
How many sales and service locations does REE's authorized dealer network cover in the U.S. and Canada?
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