REE Automotive Reports Q3 2024 Results: Reservations Surge by 230% as Production Begins and Liquidity Increases, Reaffirming BoM Breakeven Target for H2 2025
REE Automotive reported Q3 2024 results showing significant growth in reservations, which increased 230% to $137 million. The company began production of its P7 medium-duty electric truck, targeting first deliveries in H1 2025. Liquidity improved by 47% to $88.8 million in cash and equivalents compared to Q2 2024. The company secured funding of up to $65 million, including $33 million in credit facilities.
Q3 GAAP net loss was $38.5 million compared to $10.8 million in Q2 2024. Free cash flow burn narrowed by 15% year over year. The company's service network expanded to 80 locations across North America, and their demo program received positive feedback after 300+ demonstrations.
REE Automotive ha riportato i risultati del terzo trimestre del 2024, evidenziando una crescita significativa nelle prenotazioni, che sono aumentate del 230% a 137 milioni di dollari. L'azienda ha avviato la produzione del suo camion elettrico medio P7, con l'obiettivo di effettuare le prime consegne nel primo semestre del 2025. La liquidità è migliorata del 47%, raggiungendo 88,8 milioni di dollari in contante e equivalenti rispetto al secondo trimestre del 2024. L'azienda ha ottenuto un finanziamento fino a 65 milioni di dollari, inclusi 33 milioni in linee di credito.
La perdita netta GAAP per il terzo trimestre è stata di 38,5 milioni di dollari, rispetto ai 10,8 milioni del secondo trimestre del 2024. Il consumo di flusso di cassa libero è diminuito del 15% su base annua. La rete di assistenza dell'azienda si è espansa a 80 sedi nel Nord America, e il loro programma di dimostrazione ha ricevuto feedback positivi dopo oltre 300 dimostrazioni.
REE Automotive reportó los resultados del tercer trimestre de 2024, mostrando un crecimiento significativo en las reservas, que aumentaron un 230% a 137 millones de dólares. La empresa inició la producción de su camión eléctrico de media capacidad P7, con el objetivo de realizar las primeras entregas en la primera mitad de 2025. La liquidez mejoró en un 47%, alcanzando 88,8 millones de dólares en efectivo y equivalentes en comparación con el segundo trimestre de 2024. La compañía aseguró financiación de hasta 65 millones de dólares, incluyendo 33 millones en líneas de crédito.
La pérdida neta GAAP del tercer trimestre fue de 38,5 millones de dólares en comparación con 10,8 millones en el segundo trimestre de 2024. La quema de flujo de caja libre se redujo en un 15% año tras año. La red de servicio de la empresa se expandió a 80 ubicaciones en América del Norte, y su programa de demostración recibió comentarios positivos después de más de 300 demostraciones.
REE Automotive는 2024년 3분기 실적을 보고하며 예약이 230% 증가하여 1억 3,700만 달러에 달했다고 밝혔습니다. 회사는 2025년 상반기에 첫 번째 배송을 목표로 P7 중형 전기 트럭의 생산을 시작했습니다. 유동성은 2분기 대비 47% 증가하여 현금 및 현금성 자산이 8,880만 달러에 달했습니다. 회사는 최대 6,500만 달러의 자금을 확보했으며, 이에는 3,300만 달러의 신용 시설이 포함됩니다.
3분기 GAAP 순손실은 3,850만 달러로 2024년 2분기 대비 1,080만 달러에서 증가했습니다. 자유 현금 흐름 소진은 전년 대비 15% 감소했습니다. 회사의 서비스 네트워크는 북미 전역에서 80개 장소로 확장되었으며, 데모 프로그램은 300회 이상의 시연 후 긍정적인 피드백을 받았습니다.
REE Automotive a rapporté les résultats du troisième trimestre 2024, montrant une croissance significative des réservations, qui ont augmenté de 230 % pour atteindre 137 millions de dollars. L'entreprise a commencé la production de son camion électrique de taille intermédiaire P7, visant les premières livraisons au premier semestre 2025. La liquidité s'est améliorée de 47 %, atteignant 88,8 millions de dollars en espèces et équivalents par rapport au deuxième trimestre 2024. L'entreprise a sécurisé un financement allant jusqu'à 65 millions de dollars, dont 33 millions en facilités de crédit.
La perte nette GAAP du troisième trimestre était de 38,5 millions de dollars contre 10,8 millions de dollars au deuxième trimestre 2024. La consommation de flux de trésorerie libre a diminué de 15 % d'une année sur l'autre. Le réseau de services de l'entreprise s'est développé pour atteindre 80 emplacements en Amérique du Nord, et leur programme de démonstration a reçu des retours positifs après plus de 300 démonstrations.
REE Automotive meldete die Ergebnisse für das 3. Quartal 2024 und wies auf ein signifikantes Wachstum der Reservierungen hin, das um 230% auf 137 Millionen Dollar anstieg. Das Unternehmen hat mit der Produktion seines mittleren Elektro-Lkw P7 begonnen, mit dem Ziel, die ersten Auslieferungen im ersten Halbjahr 2025 vorzunehmen. Die Liquidität verbesserte sich um 47% auf 88,8 Millionen Dollar in bar und in liquiditätsnahen Mitteln im Vergleich zum 2. Quartal 2024. Das Unternehmen sicherte sich eine Finanzierung von bis zu 65 Millionen Dollar, einschließlich 33 Millionen Dollar in Kreditlinien.
Der GAAP-Nettoverlust im 3. Quartal betrug 38,5 Millionen Dollar im Vergleich zu 10,8 Millionen Dollar im 2. Quartal 2024. Der Burnout des Freien Cashflows verringerte sich im Jahresvergleich um 15%. Das Servicenetzwerk des Unternehmens erweiterte sich auf 80 Standorte in Nordamerika, und ihr Demoprogramm erhielt nach über 300 Demonstrationen positive Rückmeldungen.
- Reservations surged 230% to $137 million
- Liquidity improved 47% to $88.8 million
- Secured up to $65 million in funding
- 15% reduction in free cash flow burn YoY
- Service network expanded to 80 locations
- GAAP net loss increased to $38.5M from $10.8M in Q2
- Gross loss of $343,000 in Q3
- Operating expenses increased to $18.2M from $15M in Q2
Insights
The Q3 2024 results show significant momentum with
The start of P7 production and target for BoM breakeven in H2 2025 provides a clear path to commercialization. The strategic partnership with Motherson for supply chain optimization and expanded credit facilities from top-tier banks indicates growing confidence in REE's business model. The software-defined vehicle technology integration with OEMs could create significant recurring revenue opportunities.
The surge in vehicle reservations and successful integration of REE's software-defined vehicle technology with major OEMs validates their technological approach. The autonomous-ready X by-wire architecture is gaining traction, demonstrated by the Airbus program success and interest from additional autonomous driving companies. The expansion of their service network to 80 locations in North America creates a strong foundation for commercial deployment.
The CES 2025 Innovation Award for their P7-S Software-Defined EV Chassis reinforces their leadership in by-wire technology. The "complete not compete" philosophy appears to be resonating with OEMs, potentially opening significant partnership opportunities. The combination of hardware innovation and software capabilities positions REE uniquely in the commercial EV space.
- Demand for Powered by REE vehicles surges as reservations grow by
230% to$137 million * including reservations for production that extend beyond 2025. - Significant progress toward integration of REEs software defined vehicle technology (SDV) into leading OEMs in several vehicle categories.
- Production of flagship P7 medium duty electric truck kicked-off according to plan targeting first deliveries in H1 2025 supported by strategic partner Motherson and Detroit-based Roush Industries. Production ramp up is targeted for H2 2025 reaffirming Company’s target to reach bill-of-materials (BoM) breakeven in H2 2025 in the low hundreds of vehicles.
- REE’s Autonomous-ready X by-wire architecture continues to generate strong interest for “full-autonomy” trucks following successful Airbus program.
- Motherson has begun supply chain management and manufacturing optimization efforts.
- Liquidity improved by
47% to$88.8 million in cash and cash equivalents at the end of Q3 2024, compared to$60.5 million in the end of Q2 2024, both inclusive of a$15 million credit facility. - Free cash flow (FCF) burn continued to narrow in Q3 by
15% year over year (YoY). - Secured funding of up to
$65 million including credit facilities of$18 million from top tier banks1 for production ramp up and purchase orders (PO) financing, totaling at$33 million 2 in credit facilities; demonstrating financial sector’s confidence in REE’s business model. - Company to hold a conference call at 8:30 a.m. ET today, December 17, 2024, which may be accessed via webcast at http://investors.ree.auto or web registration and via conference call dial-in.
TEL AVIV, Israel, Dec. 17, 2024 (GLOBE NEWSWIRE) -- 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 third quarter ended September 30, 2024 and significant updates following quarter’s end.
CEO Commentary:
“Reservations more than doubled QoQ to
Financial Highlights:
- Secured
$45.35 million (gross) from a registered direct offering led by M&G and Motherson Group (Motherson) on September 15, 2024. - Secured up to
$33 million credit facilities for production ramp up to support growing demand, out of which$18 million were secured subsequent to quarter end. - FCF burn continued to narrow with
15% decrease YoY related to continued operational efficiency and substantial completion of the R&D phase of P7 program. - Third quarter U.S. Generally Accepted Accounting Principles (GAAP) net loss was
$38.5 million compared to$10.8 million in Q2 2024 and$24.1 million in Q3 2023. QoQ and YoY increases were driven mainly by non-cash losses due to remeasurement of warrants and derivative liabilities following the increase in the Company’s share price as well as by R&D tax credit and grants from the UK government recognized in the previous and corresponding quarters. The YoY increase was partially offset by lower engineering costs related to the development of the P7 EV Platform, lower share-based compensation expense as well as other operational efficiencies. Excluding R&D tax credit in the amount of$5.7 million and warrants and derivative liabilities remeasurement, the GAAP net loss decreased by$2.4 million vs. Q2 2024. - Non-GAAP net loss in the quarter was
$16.8 million compared to$12.4 million in Q2 2024. The QoQ increase was impacted by R&D tax credit from the UK government recognized in the previous quarter. Excluding the R&D tax credit in the amount of$5.7 million , the GAAP net loss decreased by$1.3 million vs. Q2 2024. - On September 30, 2024, REE had 18,927,953 shares issued and outstanding and 32,654,229 shares issued and outstanding on a fully diluted basis.
- 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."
Business Highlights:
- REE’s Service Network expands to 80 locations, one of North America’s largest for pure commercial EVs, as Authorized Dealers’ Network continue to expand.
- REE’s demo program continues to generate positive feedback from fleets across the United States now crossing 300 demonstrations.
- REE’s autonomous program with Airbus progresses with the first-ever autonomous drive on an active runway in a large commercial airport demonstrating REE’s full by-wire leadership and technology capabilities. REE’s by-wire technology and software driven vehicles are generating interest with leading autonomous driving (AD) companies looking for a functional-safe platform as the basis for their future autonomous fleets. A second major player in autonomous driving space expressed significant interest following the successful Airbus program, demonstrating ongoing traction with REE’s industry-leading X by-wire technology.
- CES 2025 Innovation Award signals the rising importance of software defined vehicle technology. REE’s P7-S Software-Defined EV Chassis was named a 2025 CES Innovation Awards® honoree in the Vehicle Tech & Advanced Mobility product category, recognizing the platform’s industry-advancing by-wire technology, modularity and engineering features.
To learn more about REE Automotive’s patented technology and unique value proposition to break new ground in e-mobility, visit www.ree.auto.
* Reservations include both binding sales orders and non-binding capacity reservations. Reservations are intended to include deliveries over the next few years. There is no guarantee that these reservations will materialize.
REE AUTOMOTIVE LTD.
Condensed Consolidated Statements of Comprehensive Loss
U.S. dollars in thousands (except share and per share data) (Unaudited)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||
| September 30, 2024 | June 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | |||||||||||||||
| Revenues | $ | 11 | $ | — | $ | 210 | $ | 171 | $ | 1,153 | |||||||||
| Cost of revenues | 354 | 651 | 1,414 | 1,809 | 2,357 | ||||||||||||||
| Gross loss | $ | (343 | ) | $ | (651 | ) | $ | (1,204 | ) | $ | (1,638 | ) | $ | (1,204 | ) | ||||
| Operating expenses: | |||||||||||||||||||
| Research and development expenses, net | 12,386 | 8,063 | 15,864 | 35,807 | 54,075 | ||||||||||||||
| Selling, general and administrative expenses | 5,792 | 6,931 | 8,513 | 19,893 | 27,443 | ||||||||||||||
| Total operating expenses | 18,178 | 14,994 | 24,377 | 55,700 | 81,518 | ||||||||||||||
| Operating loss | $ | (18,521 | ) | $ | (15,645 | ) | $ | (25,581 | ) | $ | (57,338 | ) | $ | (82,722 | ) | ||||
| Income (loss) from warrants remeasurement | (14,400 | ) | 2,586 | — | (12,520 | ) | — | ||||||||||||
| Financial income (expenses), net | (5,579 | ) | 2,130 | 1,450 | (3,318 | ) | 3,587 | ||||||||||||
| Net loss before income tax | (38,500 | ) | (10,929 | ) | (24,131 | ) | (73,176 | ) | (79,135 | ) | |||||||||
| Taxes on income (tax benefit) | (12 | ) | (142 | ) | 11 | 1,282 | (160 | ) | |||||||||||
| Net loss | $ | (38,488 | ) | $ | (10,787 | ) | $ | (24,142 | ) | $ | (74,458 | ) | $ | (78,975 | ) | ||||
| Net comprehensive loss | $ | (38,488 | ) | $ | (10,787 | ) | $ | (24,142 | ) | $ | (74,458 | ) | $ | (78,975 | ) | ||||
| Basic and diluted net loss per Class A ordinary share | $ | (2.56 | ) | $ | (0.84 | ) | $ | (2.39 | ) | $ | (5.74 | ) | $ | (7.87 | ) | ||||
| Weighted average number of ordinary shares used in computing basic and diluted net loss per share | 15,015,194 | 12,844,769 | 10,117,735 | 12,968,777 | 10,037,432 | ||||||||||||||
REE AUTOMOTIVE LTD.
Condensed Consolidated Balance Sheets
U.S. dollars in thousands (except share and per share data)
| September 30, 2024 | December 31, 2023 | ||||||
| (Unaudited) | |||||||
| ASSETS | |||||||
| CURRENT ASSETS: | |||||||
| Cash and cash equivalents | $ | 88,798 | $ | 41,232 | |||
| Short-term investments | — | 44,395 | |||||
| Accounts receivable | 11 | 455 | |||||
| Inventory | 1,751 | 463 | |||||
| Other accounts receivable and prepaid expenses | 10,943 | 6,959 | |||||
| Total current assets | 101,503 | 93,504 | |||||
| NON-CURRENT ASSETS: | |||||||
| Non-current restricted cash | 2,496 | 3,008 | |||||
| Other accounts receivable and prepaid expenses | 3,216 | 2,871 | |||||
| Operating lease right-of-use assets | 18,995 | 21,418 | |||||
| Property and equipment, net | 17,682 | 17,099 | |||||
| Total non-current assets | 42,389 | 44,396 | |||||
| TOTAL ASSETS | $ | 143,892 | $ | 137,900 | |||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
| CURRENT LIABILITIES: | |||||||
| Short term loan | $ | 15,003 | $ | 15,019 | |||
| Trade payables | 3,596 | 3,703 | |||||
| Other accounts payable and accrued expenses | 9,358 | 14,046 | |||||
| Operating lease liabilities | 3,682 | 2,411 | |||||
| Total current liabilities | 31,639 | 35,179 | |||||
| NON-CURRENT LIABILITIES: | |||||||
| Warrants liability | 30,920 | 3,400 | |||||
| Convertible promissory notes | 9,837 | 4,806 | |||||
| Deferred tax liability | 261 | — | |||||
| Operating lease liabilities | 13,528 | 16,440 | |||||
| Total non-current liabilities | 54,546 | 24,646 | |||||
| TOTAL LIABILITIES | 86,185 | 59,825 | |||||
| SHAREHOLDERS’ EQUITY: | |||||||
| Ordinary shares of no par value | — | — | |||||
| Additional paid-in capital | 968,301 | 914,211 | |||||
| Accumulated deficit | (910,594 | ) | (836,136 | ) | |||
| Total shareholders’ equity | 57,707 | 78,075 | |||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 143,892 | $ | 137,900 | |||
REE AUTOMOTIVE LTD.
Condensed Consolidated Statements of Cash Flows
U.S. dollars in thousands (Unaudited)
| Nine Months Ended | |||||||
| September 30, 2024 | September 30, 2023 | ||||||
| Cash flows from operating activities: | |||||||
| Net loss | $ | (74,458 | ) | $ | (78,975 | ) | |
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
| Depreciation | 2,396 | 1,570 | |||||
| Accretion income on short-term investments | — | (729 | ) | ||||
| Share-based compensation | 7,421 | 12,890 | |||||
| Change in fair value of warrants liability | 12,520 | — | |||||
| Change in fair value of derivative liability | 4,036 | — | |||||
| Amortization of discount of convertible promissory note | 338 | — | |||||
| Interest expenses | 641 | — | |||||
| Decrease (increase) in accrued interest on short-term investments | 895 | (426 | ) | ||||
| Increase in inventory | (1,288 | ) | (425 | ) | |||
| Decrease in accounts receivable | 444 | — | |||||
| Increase in other accounts receivable and prepaid expenses | (4,329 | ) | (2,669 | ) | |||
| Change in operating lease right-of-use assets and liabilities, net | 782 | 914 | |||||
| Increase (decrease) in trade payables | (394 | ) | 2,185 | ||||
| Increase (decrease) in other accounts payable and accrued expenses | (3,904 | ) | 281 | ||||
| Increase in deferred tax liability | 261 | — | |||||
| Decrease in deferred revenue | — | (943 | ) | ||||
| Loss from property and equipment sales and disposals | 131 | 138 | |||||
| Net cash used in operating activities | (54,508 | ) | (66,189 | ) | |||
| Cash flows from investing activities: | |||||||
| Purchase of property and equipment | (2,823 | ) | (3,353 | ) | |||
| Purchases of short-term investments | — | (66,864 | ) | ||||
| Proceeds from short-term investments | 43,500 | 113,516 | |||||
| Net cash provided by investing activities | 40,677 | 43,299 | |||||
| Cash flows from financing activities: | |||||||
| Proceeds from issuance of Ordinary shares, net | 45,872 | 611 | |||||
| Proceeds from exercise of options | 13 | 120 | |||||
| Repayment of short term loan | (15,000 | ) | — | ||||
| Proceeds from short term loan | 15,000 | — | |||||
| Proceeds from issuance of pre-funded warrants | 15,000 | — | |||||
| Net cash provided by financing activities | 60,885 | 731 | |||||
| Increase (decrease) in cash, cash equivalents and restricted cash | 47,054 | (22,159 | ) | ||||
| Cash, cash equivalents and restricted cash at beginning of year | 44,240 | 59,925 | |||||
| Cash, cash equivalents and restricted cash at end of period | $ | 91,294 | $ | 37,766 | |||
Reconciliation of GAAP Financial Metrics to Non-GAAP
U.S. dollars in thousands (except share and per share data)
(Unaudited)
Reconciliation of Net Loss to Adjusted EBITDA
| Three Months Ended | Nine Months Ended | ||||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Sep 30, 2023 | Sep 30, 2024 | Sep 30, 2023 | |||||||||||||||
| Net Loss on a GAAP Basis | $ | (38,488 | ) | $ | (10,787 | ) | $ | (24,142 | ) | $ | (74,458 | ) | $ | (78,975 | ) | ||||
| Financial income (expenses), net | 5,579 | (2,130 | ) | (1,450 | ) | 3,318 | (3,587 | ) | |||||||||||
| Taxes on income (tax benefit) | (12 | ) | (142 | ) | 11 | 1,282 | (160 | ) | |||||||||||
| Loss (income) from warrants remeasurement | 14,400 | (2,586 | ) | — | 12,520 | — | |||||||||||||
| Depreciation, amortization and accretion | 1,629 | 1,633 | 1,234 | 4,902 | 3,529 | ||||||||||||||
| Share-based compensation | 1,783 | 2,815 | 4,020 | 7,421 | 12,890 | ||||||||||||||
| Adjusted EBITDA | $ | (15,109 | ) | $ | (11,197 | ) | $ | (20,327 | ) | $ | (45,015 | ) | $ | (66,303 | ) | ||||
Reconciliation of net cash used in operating activities to Free Cash Flow
| Three Months Ended | Nine Months Ended | ||||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Sep 30, 2023 | Sep 30, 2024 | Sep 30, 2023 | |||||||||||||||
| Net cash used in operating activities | $ | (16,476 | ) | $ | (16,807 | ) | $ | (19,734 | ) | $ | (54,508 | ) | $ | (66,189 | ) | ||||
| Purchase of property and equipment | (907 | ) | (1,051 | ) | (610 | ) | (2,823 | ) | (3,353 | ) | |||||||||
| Free Cash Flow | $ | (17,383 | ) | $ | (17,858 | ) | $ | (20,344 | ) | $ | (57,331 | ) | $ | (69,542 | ) | ||||
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 | Nine Months Ended | ||||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Sep 30, 2023 | Sep 30, 2024 | Sep 30, 2023 | |||||||||||||||
| GAAP operating expenses | $ | 18,178 | $ | 14,994 | $ | 24,377 | $ | 55,700 | $ | 81,518 | |||||||||
| Share-based compensation | (1,783 | ) | (2,815 | ) | (4,020 | ) | (7,421 | ) | (12,890 | ) | |||||||||
| Non-GAAP operating expenses | 16,395 | 12,179 | 20,357 | 48,279 | 68,628 | ||||||||||||||
| GAAP net loss | (38,488 | ) | (10,787 | ) | (24,142 | ) | (74,458 | ) | (78,975 | ) | |||||||||
| Loss (income) from warrants remeasurement | 14,400 | (2,586 | ) | — | 12,520 | — | |||||||||||||
| Loss (income) from derivatives remeasurement | 5,485 | (1,889 | ) | — | 4,037 | — | |||||||||||||
| Share-based compensation | 1,783 | 2,815 | 4,020 | 7,421 | 12,890 | ||||||||||||||
| Non-GAAP net loss | $ | (16,820 | ) | $ | (12,447 | ) | $ | (20,122 | ) | $ | (50,480 | ) | $ | (66,085 | ) | ||||
| Weighted average number of ordinary shares used in computing basic and diluted net loss per share | 15,015,194 | 12,844,769 | 10,117,735 | 12,968,777 | 10,037,432 | ||||||||||||||
| Non-GAAP basic and diluted net loss per share | $ | (1.12 | ) | $ | (0.97 | ) | $ | (1.99 | ) | $ | (3.89 | ) | $ | (6.58 | ) | ||||
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 non-GAAP net loss reflects an additional means of evaluating REE’s ongoing operating results and trends. We believe that this non-GAAP measure provides useful information about our operating results, enhances 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.
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
Scott Shaffstall
Head of Communication | REE Automotive
+1 949-285-6315
Scotts@ree.auto
Malory Van Guilder
Skyya PR for REE Automotive
+1 651-335-0585
ree@skyya.com
Investor Contact
Dana Rubinstein
Chief Strategy Officer | 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 growing demand for REE’s products and technology, the potential size and increase of REE’s order book, that REE’s philosophy will pave the way for it to generate software-based revenues, its plan to deliver the first production trucks to its North American customers and the timing thereof, its target of reaching BoM breakeven in the second half of next year as it ramps up production and improves operational efficiencies, and that its successful experience with autonomous programs and full-redundancy by-wire architecture positions it in a leading position at this transformational time for autonomy. 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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A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/5581b8bc-d9cb-44a1-900f-17a8e43bf007
FAQ
What was REE Automotive's reservation growth in Q3 2024?
When will REE Automotive begin deliveries of the P7 electric truck?
What was REE's cash position at the end of Q3 2024?
How many service locations does REE have in North America?
What was REE's net loss in Q3 2024?
