Over 50,000 Government and Education Entities Can Now Purchase REE’s Software-Defined Electric Truck Through Sourcewell Contract

Rhea-AI Summary

REE Automotive (Nasdaq: REE) has announced that its P7-C software-defined Class 4 electric vehicles are now available for purchase by over 50,000 government and education entities across all 50 U.S. states. This is made possible through a 4-year contract awarded to National Auto Fleet Group (NAFG) by Sourcewell, a government agency that streamlines procurement processes.

The P7-C vehicles offer benefits such as superior maneuverability, enhanced safety, and over-the-air upgrade capability. They are eligible for a U.S. federal tax credit of up to $40,000 per vehicle and potentially over $100,000 in total incentives with additional state benefits. REE is ready to take orders immediately, tapping into a new customer base through this Sourcewell offering.

Positive

• Access to over 50,000 potential government and education customers across all 50 U.S. states
• Eligibility for up to $40,000 federal tax credit per vehicle
• Potential for over $100,000 in total incentives per vehicle with additional state benefits
• Immediate readiness to take orders from the new customer base

Negative

• None.

Insights

Market Research Analyst

The inclusion of REE Automotive's P7-C electric vehicles in Sourcewell's contract with National Auto Fleet Group represents a significant market expansion opportunity for the company. This development opens up access to over 50,000 government and education entities across all 50 states, potentially accelerating REE's penetration into the public sector fleet market.

Key points to consider:

• The 4-year contract duration provides a stable window for REE to establish its presence in this market segment.
• The streamlined procurement process through Sourcewell could reduce sales cycles and administrative barriers, potentially leading to faster adoption.
• Eligibility for substantial incentives ($40,000 federal tax credit and up to $100,000 in total incentives) makes REE's offering more attractive from a cost perspective.

However, it's important to note that while this agreement provides access, it doesn't guarantee sales. The success will depend on REE's ability to compete with other electric vehicle options and convince fleet managers of the P7-C's superiority. The company's readiness to take immediate orders suggests confidence in their production capabilities, but investors should monitor actual order volumes and delivery execution in the coming quarters to gauge the real impact of this opportunity.

Tech Expert

REE Automotive's P7-C stands out in the electric vehicle market due to its innovative software-defined architecture and REEcorner technology. These features offer several advantages that could appeal to government and education fleet managers:

• Flexibility and Future-Proofing: The software-defined nature of the vehicle allows for over-the-air updates and potential autonomous capabilities, which could extend the vehicle's useful life and adaptability to future needs.
• Enhanced Safety: The fail-operational design with redundancies in hardware and software is a critical feature for public sector vehicles, potentially reducing liability and improving operational reliability.
• Efficiency and TCO: The emphasis on serviceability and low total cost of ownership (TCO) aligns well with public sector budget constraints and long-term fleet management strategies.

However, as with any new technology, there may be concerns about reliability and long-term performance. Fleet managers might be cautious about adopting a novel platform without a proven track record. REE will need to provide robust data on reliability, performance and TCO to overcome potential skepticism in a sector that often prioritizes proven solutions over cutting-edge technology.

The modular design and quick time to market could be significant advantages if REE can demonstrate the ability to rapidly customize vehicles for specific use cases within the government and education sectors. This flexibility could set them apart from competitors offering more standardized electric vehicle options.

• REE’s P7-C software-defined Class 4 electric vehicles are now available for purchase in all 50 states through a 4-year contract awarded to National Auto Fleet Group
• Sourcewell is a government agency dedicated to streamlining the procurement process by fulfilling the bidding requirements on behalf of their members
• REE is ready to take orders immediately from this new customer base
  

TEL AVIV, Israel, July 30, 2024 (GLOBE NEWSWIRE) -- REE Automotive Ltd. (Nasdaq: REE), an automotive technology company and provider of full by-wire electric trucks and platforms, today announced that its REE’s P7-C software-defined Class 4 electric vehicles (EVs) will be available to government and education entities in all 50 states of the U.S. looking to add electric options to their fleets through a 4-year contract awarded to National Auto Fleet Group (NAFG) by Sourcewell.

“NAFG has been an approved Sourcewell vendor since 2011 and has revolutionized government vehicle purchasing by linking its nationwide network of manufacturers, like REE, and upfitters to meet the needs of Sourcewell’s clients around the country,” said Daniel Barel, CEO and Co-Founder of REE Automotive. “By adding REE’s P7-C to its contract with Sourcewell, NAFG is offering the world’s first fully software-defined vehicle to hundreds of institutions around the U.S., giving them the opportunity to bring state-of-the-art technology to their fleets.”

“For REE, this offering through Sourcewell allows us to tap into a new customer base,” said Tali Miller, Chief Business Officer of REE Automotive. “Sourcewell serves government and educational institutions around the U.S. and since Sourcewell takes care of the bidding process, their customers know that REE is a well-vetted option for their Class 4 fleet needs. We are ready to start taking orders immediately.”

Depending on the customer’s location, REE’s P7-C vehicles are now eligible for a U.S. federal tax credit of up to $40,000 per vehicle and are expected to be eligible for over $100,000 of incentives per vehicle with additional state incentives. Sourcewell’s member companies will have the opportunity to place orders for the fully-certified, software-defined, electric vehicle powered by REEcorner® full by-wire technology and experience the intended benefits including:

• Superior maneuverability and all-wheel drive functionality
• Enhanced safety with fail operational design via redundancies in hardware and software
• Driver-centric cabin with excellent ergonomics and low chassis height
• REEcorners designed for serviceability at low total cost of ownership (TCO)
• Strong residual values
• Future-proofed, autonomous-ready and over-the-air (OTA) upgrade capable
• Modular design and quick time to market
• Optimal energy efficiency

To learn more about REE’s patented technology and unique value proposition that aims to position the company to break new ground in e-mobility, visit www.ree.auto.

About National Auto Fleet Group
National Auto Fleet Group (NAFG) is a minority family-owned, all-in-one vehicle vendor that caters to government agencies across the United States. With two generations of experience, we understand the complexities involved in government fleet vehicle purchasing. Our fast, reliable, and hassle-free Sourcewell vehicle contracts empower members to seek alternatives to the tedious bidding process. Our effective and simple online quoting system offers resources to assist public agencies with a variety of fleet purchasing solutions. To learn more, visit www.nationalautofleetgroup.com

About REE Automotive
REE Automotive Ltd. (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 Guilder
Skyya PR for REE Automotive
+1 651-335-0585
ree@skyya.com

Investor Contact
Dana Rubinstein
Chief Strategy Officer for REE Automotive
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 REE’s go to market approach and REE’s executive management’s availability for analyst and investor meetings. 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.

FAQ

What is the new sales channel for REE Automotive's P7-C electric vehicles?

REE Automotive's P7-C electric vehicles are now available for purchase by government and education entities in all 50 U.S. states through a 4-year contract awarded to National Auto Fleet Group by Sourcewell.

How much federal tax credit is available for REE's P7-C vehicles?

REE's P7-C vehicles are eligible for a U.S. federal tax credit of up to $40,000 per vehicle, depending on the customer's location.

What are the key features of REE's P7-C electric vehicles?

REE's P7-C vehicles offer superior maneuverability, enhanced safety with fail operational design, driver-centric cabin, low total cost of ownership, strong residual values, and are future-proofed with autonomous-ready and over-the-air upgrade capabilities.

When can Sourcewell members start ordering REE's P7-C vehicles?

REE is ready to take orders immediately from Sourcewell members for their P7-C electric vehicles.