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REE Automotive Reports Q3 2024 Results: Reservations Surge by 230% as Production Begins and Liquidity Increases, Reaffirming BoM Breakeven Target for H2 2025
REEREE Automotive .(REE) Newsfilter·2024-12-17 12:15

Core Insights - Demand for REE vehicles has surged, with reservations increasing by 230% to 137million,includingordersextendingbeyond2025[1][3]−Thecompanyhasmadesignificantprogressinintegratingitssoftware−definedvehicletechnologyintoleadingOEMsacrossvariousvehiclecategories[1]−ProductionoftheflagshipP7medium−dutyelectrictruckhascommenced,withfirstdeliveriesexpectedinthefirsthalfof2025[1][3]−REE′sliquidityimprovedby47137 million, including orders extending beyond 2025 [1][3] - The company has made significant progress in integrating its software-defined vehicle technology into leading OEMs across various vehicle categories [1] - Production of the flagship P7 medium-duty electric truck has commenced, with first deliveries expected in the first half of 2025 [1][3] - REE's liquidity improved by 47% to 88.8 million in cash and cash equivalents at the end of Q3 2024, compared to 60.5millionattheendofQ22024[1][4]−Thecompanysecuredfundingofupto60.5 million at the end of Q2 2024 [1][4] - The company secured funding of up to 65 million, demonstrating confidence from the financial sector in REE's business model [1][4] Financial Highlights - The third quarter GAAP net loss was 38.5million,anincreasefrom38.5 million, an increase from 10.8 million in Q2 2024 and 24.1millioninQ32023,primarilyduetonon−cashlosses[4][5]−Freecashflowburnnarrowedby1524.1 million in Q3 2023, primarily due to non-cash losses [4][5] - Free cash flow burn narrowed by 15% year over year, indicating improved operational efficiency [1][4] - The company secured 45.35 million from a registered direct offering and up to $33 million in credit facilities for production ramp-up [4][5] Business Highlights - REE's service network has expanded to 80 locations, making it one of North America's largest for pure commercial EVs [6] - The autonomous program with Airbus has progressed, showcasing REE's full by-wire technology capabilities [6] - REE's P7-S Software-Defined EV Chassis received recognition as a 2025 CES Innovation Awards honoree, highlighting the importance of software-defined vehicle technology [6]