REE Automotive Reports First Quarter 2024 Financial Results: Deliveries to Customers Have Begun Including to Penske, U-Haul and Airbus

Core Insights - REE Automotive Ltd. reported strong momentum in Q1 2024, achieving U.S. certification and beginning truck deliveries, with an order book value exceeding $50 million [2][4][5] - The company is focusing on expanding its dealer network and securing fleet orders from major companies like Penske and U-Haul, enhancing its market presence in North America [2][3][4] - REE's proprietary REEcorner® technology positions it favorably within the commercial electric vehicle (EV) value chain, with increasing interest from other automotive manufacturers [3][5] Business Highlights - REE has initiated a demo program with its dealer network, delivering trucks to generate orders from fleet customers, which could further increase the order book [2][4] - Penske Truck Leasing has begun offering REE's electric vehicles to its customers, with a significant fleet of approximately 450,000 vehicles [4][5] - U-Haul is evaluating REE's electric platform as part of its fleet electrification strategy, marking a significant partnership for the company [5][9] Technology Developments - The P7-C truck is the first full by-wire vehicle to achieve U.S. FMVSS and EPA certifications, making it eligible for substantial federal tax credits and incentives [6][8] - REE's collaboration with Airbus on an autonomous program highlights the potential for its technology in the autonomous driving market [5][9] Financial Performance - In Q1 2024, the company reported a GAAP net loss of $25.2 million, a 29% reduction from the previous quarter and a 12% decrease year-over-year [8][17] - Non-GAAP net loss narrowed by 33% quarter-over-quarter to $21.7 million, reflecting operational efficiencies and reduced costs [8][17] - As of March 31, 2024, REE had cash and equivalents of $77.5 million, bolstered by a $15 million public offering [8][17] Operational Strategy - REE is implementing a CapEx-light manufacturing strategy, aiming for bill of materials break-even at low production volumes [10] - The company plans to scale production responsibly based on available working capital and demand, with a goal of de-risking execution [10][17] - The automated production line in the UK is designed to optimize working capital by building REEcorners® based on customer orders rather than inventory [10][17]