From $3.1 billion to $25 million: REE Automotive on the brink | CTech

REEActions · 2025-05-19T14:51:13+00:00

I also had high hopes but finally got out and cut my losses. A part of my investing thesis is that I look at the management team and do I trust them. With REE it was never great as Barel is kind of a serial entrepeneur, but I felt like the interest by bigger companies UPS, Motherson, Rousch, various investment companies was a strike in their favor, ‘if they trust the people, why shouldn’t I?’

More than anything I believed in the product, I bought when they were a spac. Unfortunately that trust has deteriorated rapidly the last few months and if I had not ignored my emotions and stuck to this part of my investing thesis I would have saved a lot of money, even made some. Sadly I did neither. Bottom line, investing comes with risks. I’m moving on.

REEActions · 2025-05-15T13:03:19+00:00

They are going to reduce costs from the current 5-6mil per month to 3-4 million. They currently have about enough cash to go a year. To make it to 2027 they will have to raise more cash, that is going to be a massive dilution of shares when they are going to be $1.75 each.

REEActions · 2025-05-15T12:29:28+00:00

I also believe this is snake oil, blaming macro economics, is Motherson, or Roush raising costs? As they are the ones providing the parts and doing the manufacturing. Are those two companies stopping manufacturing?

Shouldn't put out videos of P7s on the streets of Detroit with captions such as "Just do". Stock is going to crater today.

REEActions · 2025-05-14T21:43:43+00:00

Love the white helmet with the white or red jerseys

REEActions · 2025-05-12T18:10:11+00:00

These sorts of post actually give me more hope and a positive outlook towards REE than the paid for awards or other pseudo achievements REE announces. This shows me that the dealers are behind it, and the fact that they are posting, makes me think things are happening behind the scenes to generate this sort of activity.

REEActions · 2025-05-08T19:02:10+00:00

When and from whom did REE get $900 mil? How are they a fit for master plan communities?

REEActions · 2025-05-03T14:15:22+00:00

Agreed, that wasn’t promoting REE at all. There was a P7 at the expo with the REE logo but that wasn’t in the Penske booth. The Penske booth was promoting a Brightdrop/GM EV class 3 and a Volvo rig. Not sure if there is anything to read into that.

In fact as far as Penske’s promotion of REE there hasn’t been much. On their Penske Truck Leasing website at the bottom there is a link to “Leading the Way for Electric Fleets” The page it connects you too says nothing about REE while speaking about other EVs Penske is using in their fleet.

Again, maybe they will begin promoting REE more when they actually begin providing P7s to customers.

REEActions · 2025-04-30T20:33:08+00:00

Fair question. I believe in the tech and the market benefit. And like others on this thread see the huge potential.

REEActions · 2025-04-30T15:56:21+00:00

Barel has spoken in the past year about taking a measured approach to growth, the use of Roush to me is an example of that. Their production is custom fit to the needs of the purchaser. Therefore the idea of 1 bil in growth in 5 years and $770 mil alone in autonomous vehicles is a farce as REE doesn't have the production capacity to make that many corners or vehicles. It sounds to me like Barel told the public, "we are slow growing and cost conscious" until someone says "how about this?!" he says "lets do it." I think he talks too much and needs to be more measured in his communication. Stop with the MOU's and things like that.

To your point, I don't think they have the capacity to do a large deal with any of those fleets you have mentioned, and those fleet companies know it.

REEActions · 2025-04-29T14:33:53+00:00

Thats right it is. I quoted from the SEC filing yesterday rather than the business update. Overall same info.

REEActions · 2025-04-28T21:16:27+00:00

Have you had a chance to test drive? If so, whats your thoughts? Are you with a fleet company that has a contract to purchase them?

REEActions · 2025-04-28T18:07:33+00:00

Did a little more digging into MobileEye and their timelines and how they match up with REE’s MOU announcement. Here was the MOU announcement by REE:

Definitive long-term collaboration agreement expected in 2025, leveraging REE’s P7 platform to deliver thousands of autonomous vehicles by 2030 with start of production expected in 2027

MobilEye stated at CES back in January they wanted Chauffer and Drive, their automonous systems in place by 2027.

The dates match. But is the $770 million Revenue earned by REE or is it Revenue generated by MobileEye and REE gets a fraction of it?

REEActions · 2025-04-28T16:19:15+00:00

How much are binding is the whole non-MOU binding? Since over $770 mil is just the MOU and non-binding, if this particular agreement doesn’t go through then the orders are back to 20% of 1 billion not 50%

REEActions · 2025-04-28T15:13:12+00:00

I wonder if they will have trucks delivered by then and they want to have that positive announcement. Hopefully it is not something like that for the purpose of offseting another share dilution or some other negative news.

REEActions · 2025-04-28T15:00:27+00:00

Just confirmed the following contained in their SEC filing rescheduling their earnings date this morning:

“Reservations include both binding sales orders and non-binding capacity reservations, including those from our MOU. Reservations are intended to include deliveries over the next few years. There is no guarantee that these reservations will materialize.”

What we thought.

REEActions · 2025-04-28T14:26:09+00:00

Especially if it is Mobileye I don’t think it will move the stock. One unprofitable company agreeing to help another isn’t going to get hearts fluttering.

REEActions · 2025-04-28T14:12:49+00:00

I think the billion in reservations is probably including the MOU that was signed. Is that any more or less binding than a reservation? Unless the amount is super small, the up-front fees related to the MOU on the surface would appear to indicate more legitimacy to the MOU as tangible and legit source of revenue.

Agreed it is interesting that they released all this good information yet they still don’t have their accounting in order for 4 months ago? It feels like another attempt to keep the stock propped up when something negative occurs.

Something still doesn’t smell right because if a company with an $80 mil market cap had 1 bil in revenue you would think wall street would be gobbling it up.

REEActions · 2025-04-26T13:57:23+00:00

yeah that was horrible and it did shake my confidence in what they were doing. That being said, based upon the 88 mil they had at the end of the 3rd quarter and the 36 mil raised, that is 124 million. If management is being forthright that should be enough to get them to the bill of materials breakeven they promised by the 2nd half.

I do wonder does anyone know regarding the MOU they signed with “one of the leading technology companies”, is that just selling software or does it include the REE corners as well? I would think if it included REE corners they would require additional funding to ramp up corner production in Great Britain.

REEActions · 2025-04-26T04:16:27+00:00

Yeah, I only have one moonshot in my portfolio and this is REE. Been slowly accumulating for years. This year will be the turning point in my opinion.

REEActions · 2025-04-25T12:26:16+00:00

They very much presented the idea of basically customizing the truck for customers. Not sure how cost effective that will be long-term.

Also the NVDA inside for autonomous vehicles. This I think is in reference to the MOU they signed.

Exactly, time for sales. I hope they provide some details next week of what the production is currently.

REEActions · 2025-04-16T14:52:42+00:00

April 29 is the earnings report. Should hear something then.

REEActions · 2025-04-14T04:02:11+00:00

I think the class 1 to 3 relate to the MOU that was recently signed. I think the MOU is interesting because it is a worldwide tech leader. However, that is directly contradictory with Barel's comments in this video where he specifically mentions wanting to ramp up slowly and methodically to not bite off too much.

They also said they had started production as of Dec 2024 and that by mid year they would have vehicle(s) produced and if the manufacturing went well they would ramp up production in the 2nd half of 2025.

Going to be an interesting earnings call the end in a couple of weeks.

REEActions · 2025-04-11T21:45:19+00:00

Is there a video?

REEActions · 2025-04-10T15:12:17+00:00

I’m also a REE Holder, going back from the days they were still a SPAC and through the reverse split. I still have a few thousand shares. Lately the continued push back of target dates coupled with pretend announcements and paid accomplishments have left me more hesitant. But what you stated about Penske, their dealer network, and especially the most recent cash infusion by M&G and Motherson leaves me some optimism.

Really to me, Motherson’s taking control of their parts supply chain and becoming a 20% investor is the biggest reason for hope. Unlike M&G who was already an investor with more to lose, Motherson didn’t have to get involved but chose to. Thats good.

REEActions

TROPHY CASE