REE Automotive Announces Fourth Quarter 2022 Financial Results

Rhea-AI Summary

REE Automotive Ltd. (NASDAQ: REE) reported a strong order book growth with firm orders increasing from 2 to 8 customers, totaling 35 orders for its Powered by REE vehicles. The company achieved key development milestones on time with operating expenses of $127 million in 2022 and forecasts 2023 non-GAAP expenses between $70-$75 million, supported by liquidity of $154 million. Initial vehicle deliveries are expected in 4Q23, aiming for COGS breakeven in low hundreds of vehicles and adjusted EBITDA breakeven in low thousands.

Positive

• Strong order book growth with 35 firm orders.
• Liquidity of $154 million to support operations.
• Key development milestones achieved on time and within budget.
• Successful delivery of 2 prototypes for customer evaluation.

Negative

• None.

Strong order book growth; initial deliveries slated to begin in 4Q23

• Achieved key development milestones in 2022 on time and in line with budget with total operating expenses of $127 million
• Liquidity of $154 million supports anticipated non-GAAP operating expense of $70-$75 million for 2023 with P7 program fully funded into commercialization
• Strong order book growth for Powered by REE vehicles growing customer base from 2 to 8 since reporting 3Q22 results with 35 firm orders as of today
• Delivered 2 prototypes to an OEM for customer evaluation and testing
• Grew our go to market strategy by achieving direct sales and entering into additional dealership agreements in the US
• Provided suppliers with 2023-24 production forecast; built the first batch of production intent P7 vehicles for validation; certification activities underway
• Company expects to begin deliveries to customers in 4Q23; and is targeting COGS breakeven in the low hundreds of vehicles and adjusted EBITDA breakeven in the low thousands of vehicles
  

TEL AVIV, Israel, March 16, 2023 (GLOBE NEWSWIRE) -- REE Automotive Ltd. (NASDAQ: REE) (“REE” or the “Company”), an automotive technology leader and provider of electric vehicle (EV) platforms, today announced its financial results for the fourth quarter ended December 31, 2022, through a shareholder letter posted on the Company’s investor relations website at https://investors.ree.auto. The Company will also hold a conference call today, March 16 at 8:30 a.m. ET. The live webcast of the conference call can be accessed on the Investors section of the Company’s website. Click here for webcast URL. For the telephone conference online registration click here.

About REE
REE Automotive (Nasdaq: REE) is an automotive technology company that allows companies to build any size or shape of electric vehicle 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, enabling REE to build 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.

Contacts

Investors
Kamal Hamid
VP Investor Relations | REE Automotive
+1 303-670-7756
investors@ree.auto

Media
Keren Shemesh
Chief Marketing Officer
media@ree.auto

Caution About Forward-Looking Statements
This communication includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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. 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, objectives and expectations for our business, the impact of trends on and interest in our business, intellectual property or product and its future results, operations and financial performance and condition.

These forward-looking statements are based on information available 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, produce and market its newest medium-duty electric box truck built on a P7 platform, as discussed in this press release; 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 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; 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 ongoing COVID-19 pandemic and any other worldwide health epidemics or outbreaks that may arise; and adverse global conditions, including macroeconomic and geopolitical uncertainty; 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, 2022 and in subsequent filings with the SEC.

 

FAQ

What are the latest financial results for REE Automotive?

REE Automotive reported its financial results for Q4 2022 with total operating expenses of $127 million.

When will REE Automotive begin delivering vehicles?

REE Automotive expects to start deliveries of its vehicles in 4Q23.

What is REE's current order book status?

As of now, REE has a total of 35 firm orders and has expanded its customer base from 2 to 8.

What are the anticipated operating expenses for REE in 2023?

REE expects non-GAAP operating expenses to be in the range of $70-$75 million for 2023.