• 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 million² in credit facilities; demonstrating financial sector’s confidence in REE’s business model.
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• 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 $137 million and we continue to see strong and growing demand for REE’s technology and products. We are observing robust interest across the value chain, from fleet owners to vehicle OEMS. On the fleet side, we are seeing fleets reserving priority production for P7 electric trucks over several years, indicating the transition from demo orders to long-term partnerships. Our service network continues to expand as the largest of its kind in North America to support these customers. On the OEM side, it is exciting to see a growing number of OEMs evaluating our technology as the basis for their own software-defined vehicle lineup. I believe that this is a true testament of our ‘complete not compete’ philosophy. We believe this can pave the way to significant software-based revenue generation as a major growth driver for our business,” said Daniel Barel, co-founder and CEO of REE. “We have kicked off P7 production as planned, marking a major milestone. We plan to deliver the first production trucks to our North American customers in the first half of next year. Our supply chain collaboration with strategic partner Motherson and vehicle-assembly with Roush are both progressing well. We reaffirm our target of reaching BoM breakeven in the second half of next year. With strong and growing multi-year demand for our products and technology, with production underway and with the support of Motherson as our global strategic partners, we feel very optimistic about what 2025 will bring. I could not be happier that the talented team at REE is finally seeing the fruits of their labor transform into customer satisfaction.”

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)

Condensed Consolidated Balance Sheets

U.S. dollars in thousands (except share and per share data)