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TEL AVIV - REE Automotive Ltd. (Nasdaq:REE), a developer of software-defined vehicle technology solutions currently trading at $0.68 with a market capitalization of $18.7 million, has received a notification from Nasdaq that it is not in compliance with the exchange’s minimum bid price requirement. According to InvestingPro data, the stock has declined over 92% year-to-date, though analysis suggests the shares may be undervalued at current levels.
The letter, received Thursday, indicates that REE’s closing bid price for its Class A ordinary shares has fallen below $1.00 for 30 consecutive business days from May 15 through June 27, 2025.
Under Nasdaq rules, the company has until December 29, 2025, to regain compliance. REE can achieve this if its closing bid price reaches at least $1.00 for a minimum of ten consecutive business days during this period.
If REE fails to meet this requirement by the deadline, its shares may face delisting. However, the company could potentially receive an additional 180-day compliance period if it meets other Nasdaq Capital Market listing standards.
The notification does not immediately affect REE’s listing status or the trading of its shares, which will continue to trade on Nasdaq under the symbol "REE" during the compliance period, though with an indicator in quotation information.
REE stated it intends to monitor its share price and consider available options to address the deficiency within the compliance period.
The company specializes in developing software-defined vehicle technology with a focus on by-wire systems for drive, steer, and brake control that eliminate mechanical connections. REE was the first company to receive FMVSS certification for a full by-wire vehicle in the United States, according to the press release statement. InvestingPro analysis indicates the company maintains a current ratio of 2.28, though its overall financial health score remains weak at 1.12, reflecting ongoing operational challenges in this innovative but capital-intensive sector.
In other recent news, REE Automotive reported nearly $1 billion in customer reservations, indicating strong demand for its electric trucks and platforms. The company announced a delay in the publication of its 2024 financial results, now rescheduled for May 15, 2025. Preliminary unaudited financial results for 2024 show an expected net loss of $111.8 million, with a solid cash position of $72.3 million in cash and short-term investments. Meanwhile, H.C. Wainwright downgraded REE Automotive’s stock from Buy to Neutral, highlighting tariff-related challenges affecting the company’s P7 production plans. The analyst noted a strategic shift towards cash preservation and software commercialization. Similarly, Roth/MKM downgraded the stock to Neutral and reduced the price target to $1.00, down from $14.00, due to halted P7 production plans. The analysts expressed concerns over the impact of tariffs and the company’s shift to a software-focused model. REE Automotive’s strategic partnerships with Motherson Group and Roush Industries are expected to enhance supply chain and delivery capabilities.
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