Intel stock extends gains after report of possible U.S. government stake
TEL AVIV – REE Automotive Ltd. (NASDAQ:REE), a developer of software-defined vehicle technology with a current market capitalization of $81.14 million, announced a significant increase in customer reservations totaling nearly $1 billion, indicating strong demand for its electric trucks and platforms. According to InvestingPro analysis, the company’s stock appears undervalued based on its Fair Value model, despite facing significant challenges with a weak overall financial health score. The company also revealed a delay in the publication of its 2024 financial results, now rescheduled for May 15, 2025, before market opening.
The company’s reservations, which include binding sales orders and non-binding capacity reservations, reflect the growing market interest in REE’s software-defined vehicles (SDVs) and full by-wire commercial vehicles. The anticipated first deliveries of the P7-C, the world’s first Federal Motor Vehicle Safety Standards (FMVSS) certified full by-wire commercial vehicle for public roads in the U.S., are expected in the first half of 2025. With the stock down 67% year-to-date, InvestingPro subscribers can access detailed analysis and 12+ additional ProTips about REE’s growth prospects and market position.
REE’s collaboration with Motherson Group aims to strengthen its supply chain, while its partnership with Roush Industries is set to enhance delivery capabilities for its SDVs. Additionally, a Memorandum of Understanding (MOU) with a leading technology company is poised to expand REE’s reach into the global autonomous transportation vehicle market.
The company achieved several important milestones in 2024, including obtaining FMVSS certification, completing the first autonomous drive on an active runway with Airbus UpNext, and launching REEai Cloud in collaboration with Geotab.
REE’s preliminary unaudited financial results for the fiscal year ended December 31, 2024, show an expected net loss of $111.8 million, or $7.01 loss per share. This compares to a net loss of $114.2 million, or $11.32 loss per share, in 2023. The fourth quarter of 2024 saw an expected net loss of $37.3 million, or $1.51 loss per share.
Despite these losses, the company’s cash position remains solid, with $72.3 million in cash & cash equivalents and short-term investments as of December 31, 2024. This includes an $18 million credit facility, compared to $85.6 million at the end of the previous year, which included a $15 million credit facility.
REE’s CEO, Daniel Barel, expressed confidence in the company’s trajectory and its strategic partnerships, which are expected to support continued growth in 2025. The detailed financial results and an updated outlook for 2025 will be discussed during a conference call on May 15, 2025.
This news is based on a press release statement from REE Automotive. The company has filed a Notification of Late Filing with the U.S. Securities and Exchange Commission regarding its 2024 Annual Report. The final audited financial statements may differ from the preliminary results due to the completion of financial closing procedures and other developments.
In other recent news, REE Automotive Ltd. has secured $36.4 million through a direct offering, following a previous $27 million offering. These funds, facilitated by strategic investors like Motherson Group and M&G Investments, are intended for working capital and general corporate purposes, aligning with the company’s plans to manage nearly $1 billion in vehicle reservations. Additionally, REE Automotive announced a memorandum of understanding (MoU) with a global technology firm, which could potentially generate $770 million in revenue by 2030. This MoU reflects the company’s strategic efforts to expand its market presence and leverage its innovative automotive platforms. Analyst firm H.C. Wainwright maintained a Neutral rating on REE Automotive, with a price target of $3.00, indicating a cautious outlook as the company progresses with these developments. The company continues to focus on scaling up production, with plans to deliver its flagship P7-C electric truck in the first half of 2025.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.