REE Automotive Announces Second Quarter 2024 Financial Results

REE Automotive Announces Second Quarter 2024 Financial Results

REE Automotive Ltd. (NASDAQ: REE), an automotive technology company, has announced its financial results for the three months ending June 30, 2024. Here is a detailed summary of the company's financial performance and recent developments.

Key Financial Metrics

REE Automotive significantly narrowed its net loss by 57% compared to the previous quarter and 59% year-over-year. The reduction was mainly attributed to increased recognition of grants from the UK government, income from remeasurement of warrants and derivative liabilities, and reduced engineering costs related to the P7 EV Platform development.

Revenue Performance by Segments

The company kicked off U.S. production in Michigan for full vehicle assembly and continued production of its proprietary REEcorner technology in the UK. Strong interest from OEMs in incorporating REE's software-defined EV technology was noted, underpinning potential future growth.

Key Developments and Operational Highlights

• Completed a $45.35 million Registered Direct offering, led by M&G and Motherson.
• Established a strategic agreement with Motherson to enhance supply chain management and cost structure.
• Order book increased by 15% QoQ and 289% YoY, totaling approximately $60 million.
• Expanded the dealership network to 78 sales and service locations in the U.S.
• Delivered demonstration vehicles to Penske Truck Leasing and U-Haul.

Comments from Company Officers

Daniel Barel, Co-founder and CEO, highlighted the strategic manufacturing agreement with Motherson as transformational, enabling REE to scale operations efficiently. The company's focus remains on technology leadership and cost reduction, with U.S. production of the P7 line underway in partnership with Roush.

Forward Guidance

There was no explicit forward guidance released. However, the company anticipates significant order growth and plans to start deliveries in 2025, utilizing its enhanced production capabilities.

Stock Price Movement

Following the earnings release, REE Automotive's stock experienced a slight uptick of approximately 0.32%.

In summary, REE Automotive is making significant strides in reducing its net losses and positioning itself for future growth through strategic partnerships and production expansions. The company's advancements in EV technology and manufacturing efficiencies are expected to drive performance in the forthcoming quarters.