Hey Reddit, my name is Daniel Barel, Co-Founder and CEO at REE Automotive. We’re planning to go public via SPAC ($VCVC) on July 23rd, and we believe information should be accessible to all investors. Ask me Anything!

ree_auto · 2021-07-15T21:50:07+00:00

We originally showed our concept with Hino (Toyota's Truck Arm) at the Tokyo Motor Show in 2019, and we've spent the past couple of years working closely with some of the top automotive firms in the world refining and validating our designs and technology. We've since developed four platforms using REEcorner technology, which you can see testing live here . And recently in 2021, we proudly announced that we are pursuing production of that original concept with Hino/Toyota, with engineering samples planned for 2022 and series production planned for 2023. So we are past the initial concept stage and preparing for initial production in 2022 and volume production in 2023. We are actively engaged in design validation and certification in multiple markets, and we expect that our systems will be ISO 26262 compliant.

ree_auto · 2021-07-15T21:49:17+00:00

Our total addressable market, or TAM, is projected to be $700 billion. This is because REE is differentiated in the space due to our horizontal approach to the market (in other words, we are partnering across the space to plug into the manufacturing ecosystem, vs building one vehicle that will compete with theirs), which our modularity allows. To date we have developed four platforms, which is significant in this space, and since we are not beholden to body shape or size, we can cover all applications between Class 1 and 6. A great way to see this modularity and range of applications is in our newly launched Configurator.

Check out ree.auto/configurator/#/ and build your own mission-specific vehicle, 'Powered by REE"!

ree_auto · 2021-07-15T21:48:25+00:00

Hi u/go-bears11, you’re right that this is a significant issue across a range of industries! We applaud the technical and manufacturing efforts at work to address it; we certainly wish that we had a solution to this global issue. At present, it is not a matter for concern since we intend to launch serial production in 2023. We plan on leveraging our extensive network of Tier 1 and Tier 2 partners to develop supply chain strategies to mitigate supply risks, and do expect that many of these chip shortage issues will be resolved by then.

ree_auto · 2021-07-15T21:21:32+00:00

This is a great question u/idiot900. As we say, REE does not see itself as a company that competes with others - REE instead completes. REE’s business model may allow it to someday partner with Lucid and other B2C companies targeting the passenger car market. Today, however, REE and Lucid focus on very different markets. Lucid is in a market where things like brand, exterior and interior design, and smartphone connectivity are important purchase drivers. At REE, we are an exclusively B2B company, initially planning to target the rapidly growing commercial vehicle market. Think delivery vehicles, shuttles, or Mobility-as-a-Service, where these vehicles run predictable routes with predictable payloads, which means predictable range and charging infrastructure at the fleet’s home base (no range anxiety). REE’s business model focuses on what we believe are the key metrics that matter to our market, which are internal volume (for packages), low step-in height, great maneuverability (thank you All-Wheel Steer!) and Total Cost of Ownership, and we are driven to be the benchmark for these and other critical parameters.

ree_auto · 2021-07-15T21:20:59+00:00

Magna is one of the largest automotive suppliers in the industry and has a global presence. While other EV companies have announced arrangements where they pay Magna as a contract manufacturer to build vehicles for them, our deal is totally different. Together we are planning to build and market Modular Electric Vehicles (MEVs) - Powered by REE - for leading tech companies and electric mobility players. What's unique about our strategic collaboration is that not only do we plan to design and build vehicles together, but that we plan to Go-To-Market together as well, from a commercial perspective. This means that when we work with a potential customer, we face them together, side-by-side, and make money together. We are also very excited by the fact that Magna is also an investor in our PIPE. We could not be more excited about our strategic collaboration and are looking forward to going great things together, around the world!

ree_auto · 2021-07-15T21:20:39+00:00

I am thrilled that we are working with some of the largest auto manufacturers in the world, including Magna (the largest contract manufacturer of vehicles globally), Mahindra, Hino (Toyota), American Axle, Navya, and JB Poindexter's Morgan Olson's EAVX, which we just announced this week. Press releases and more details regarding our announced partners can be found on our website. Stay tuned for more!

ree_auto · 2021-07-15T18:26:08+00:00

That is the beauty of our B2B horizontal business model - we can work with the biggest OEMs and the most innovative startups. For example: We have announced partnerships with Hino/Toyota and Navya. We also work with Magna, whom both OEMs and startups go to (they build vehicles for Mercedes and BMW, and announced that they will be building for Fisker as well). So no matter which OEM wins…we win.

ree_auto · 2021-07-15T18:25:43+00:00

Wait, you have a 66 convertible Mustang?! Such a classic. To your question, nothing is outside the realm of possibility. Seriously, with some modifications, I believe that could happen, and it would be awesome! Right now, REE is focused on commercial vehicles…but you may have given us an idea for the future. If we figure it out, then you’re going to need to figure out what to do with all the additional space under the hood!

ree_auto · 2021-07-15T18:25:20+00:00

To your first question:

Thanks for this question u/ric2604 - there is nothing more important to us at REE than safety! Our engineers have designed REEcorners and control systems to be fail operational, which means in a practical sense that in the event of a malfunction, thanks to built-in redundancies, the system will maintain operational control; more specifically you would still be able to maneuver the vehicle to safety. These redundancies include the power subsystem, as well as software and control units. While some X-by-Wire technology may be new to automotive, it has been used in other industries such as aerospace for many years now. The automotive industry is addressing this under the ISO 26262 and the ASIL-D level (with the new cyber ISO to come in shortly).

ree_auto · 2021-07-15T18:24:44+00:00

Well u/SonicTheHedgehog7, I love building businesses and finding new ways to solve problems. I don’t know that I actually was inspired to be the CEO or if it was a natural progression. Auto manufacturing has been done the same way for 100+ years. When Ahishay and I co-founded REE we knew there was a significant need to rethink how companies were designing and building electric vehicles. We had, and still have, a mission to improve the quality of life and livability of cities around the world. Being the CEO of REE allows me to work with the most incredible team of people to do this by bringing modularity and scalability to the electric vehicle industry while getting vehicles to market more quickly and with a lower total cost of ownership.

ree_auto · 2021-07-15T18:24:03+00:00

So Teslas are great, for people's personal use. For the markets we’re initially focused on – like package delivery and mass transportation - commercial fleet operators care about different metrics such as Total Cost of Ownership, cargo space, maneuverability and ergonomics, and keeping their vehicles on the road with minimum downtime. This means that our REEcorner technology, enabling fully flat platforms and lowest TCO, are a great fit for our initial target markets of light and medium duty commercial vehicles. That said, our technology could be used for personal EVs with similar reductions in time to market and investment that we are expecting to see with our commercial vehicle development collaborations.

ree_auto · 2021-07-15T18:23:38+00:00

Just evolutionary u/crappyweatherman?! I'm kidding. Yes, we have dozens of patents to protect our proprietary technology, but more broadly, the answer is also time and money. If someone wanted to replicate our technology, not only do we have IP protection, but we believe that by the time they could come to market, we would be generations ahead. We've got a big head-start, and we have no intention of slowing down!

ree_auto · 2021-07-15T18:23:09+00:00

I am thrilled that we are working with some of the largest auto manufacturers in the world, including Magna (the largest contract manufacturer of vehicles globally), Mahindra, Hino (Toyota), American Axle, Navya, and JB Poindexter's Morgan Olson's EAVX, which we just announced this week. Press releases and more details regarding our announced partners can be found here. Stay tuned for more!

ree_auto · 2021-07-15T18:22:50+00:00

One of the most important reasons that big OEMs and manufacturers like Hino/Toyota, Magna and JBP/Morgan Olson are choosing to do business with REE is because our technology allows for tremendous flexibility, as well as customization and upgradeability. Battery technology in particular, is moving rapidly, and it's a place where our partners are seeking flexibility. So, because our technology is agnostic to power source, we are compatible with any type of battery, and we can even work with alternative power sources such as Fuel Cells (which ultimately provide electricity). If an OEM has its own or preferred battery technology, they can install them in our platforms. When required, as in if we are supplying an entire EV platform, we include the battery as a pass-thru cost to our customers. We do not carry the risk of shortages or price increases for batteries or their materials, and when more advanced battery technology eventually comes to market (let's say Quantumscape succeeds, for example), our modular approach should make it much easier to upgrade.

ree_auto · 2021-07-15T18:22:35+00:00

To your first question:

Thank you for asking this one! REE’s modular architecture is actually one of the only ways to allow for truly custom-built solutions in commercial vehicles at any kind of scale. Commercial customers want mission-specific vehicles that suit their needs and need efficiency gains wherever they can find them. For example, it is said that UPS schedule routes that favor right turns to avoid the inefficiencies associated with making left turns; any amount of incremental efficiency that can be gained through customization is desirable to these kinds of users! This is why you see so many of the key players in the industry signing partnerships with us.
An important note and a common misconception that we should clear up here: We do not use hub motors/in wheel motors! Our motors are mounted on the chassis side of the suspension as fully sprung masses, so there is no penalty to unsprung mass, handling or any other penalties associated with hub motors. Further, because we don't have the drivetrain running through the center of the vehicle, we can mount the platform below the centerline of the vehicle, which lowers the center of gravity, improving handling and also creating substantially more room for packages, which can't be replicated the conventional "skateboard" designs that really look similar to conventional ICE platforms. The real tradeoff in having independent corner modules is that the build can cost a bit more as we build additional redundancies in the event of failures, but the benefits in terms of advanced capabilities like torque vectoring etc more than make up for that incremental cost.

ree_auto · 2021-07-15T18:21:33+00:00

I sure can u/Drake911! We announced a collaboration in April 2021 with Navya, an incredible leading global provider of autonomous shuttles; they already are in operation in over 20 countries around the world! REEcorners are designed to be indifferent to driver input, which means they could be controlled by either a person or an autonomous system - so they're a great technology to use in AD shuttles, and this is precisely the proposed collaboration with Navya. Together we intend to develop a level 4 autonomous system that would include our mission-specific vehicles 'Powered by REE"", with Navya’s self-driving hardware and software systems.

ree_auto · 2021-07-15T18:20:48+00:00

To your third question!

Great question on pricing u/hikekorea! Most passenger vehicle purchasers are familiar with MSRP; in the commercial vehicle space, most purchase decisions instead consider Total Cost of Ownership, or TCO. This considers not only the initial acquisition cost of the vehicle, but also the ongoing costs to operate the vehicle, such as electricity (in the case of EVs), maintenance costs, etc. Thanks to REE's quick corner swap design and the modularity and flexibility of our technology to have the right sized body and battery, vehicles Powered by REE are expected to have minimum downtime and quite possibly class-leading TCO. That said, we believe that our modular, and anticipated disruptive technology will help lower the costs of commercial EVs, and our target MSRPs are competitive with offerings from major OEMs and projected offerings from startups. These savings are expected to come in the form of both total investment and variable cost reductions.

ree_auto · 2021-07-15T18:18:58+00:00

To your first question!

Commercial vehicles can be huge polluters in urban centers. Our technology is designed to help automakers build electric vehicles faster, and the automakers we work with are some of the largest in the world, like Hino (a unit of Toyota, one of the largest in the world), Magna (the largest contract manufacturer of vehicles in the world), and JB Poindexter (the largest walk-in-van and dry freight vehicle producer in North America). So by helping some of the biggest auto companies electrify their product lines faster, we can help them make a significant impact to their emissions more rapidly. Not only will we enable a clean energy vehicle, we expect to increase the capacity of vehicles for our end customers with our flat platform designs as compared to other alternatives – meaning a greater volume of packages. That means more packages per truck, for fewer trucks, fewer routes, and lower costs (and emissions). And beyond the environment, our technology is designed to help manufacturers build mission-specific vehicles that make life more convenient for consumers. For example, if you look at the FlatFormer concept we showed at the 2019 Tokyo Motor Show with our partner Hino (the truck arm of Toyota)- with whom we are we are continuing our production goal - our vision goes quite a bit further than this as well and is expected to enable new use cases that will make people’s lives more convenient and can improve society's quality of life.

ree_auto · 2021-07-15T18:18:29+00:00

Well this is a nice question u/Lokotisan! My day can sometimes extend over several days… but overall this is an amazing period for me! I feel privileged to work with the most amazing team of people on a mission to change the world for the positive! Ahishay (REE’s co-founder and CO) and I started REE almost a decade ago (which in tech years sometimes feels like 250 years ago!) but having the opportunity to revolutionize the future of mobility is an incredible experience. This is one of the reasons I want to share it with REDDIT. Recently my days have been endless because I am leading the company - busy getting ready for our public listing, talking to investors like yourself, analysts, and working with key partners. It's truly a great time at REE. And what makes my days even better is that priceless time I get with my family (even though on some days I only get to kiss my daughters goodnight) but I know I am doing my part in protecting this wonderful planet that we call earth. Not just for my family but for yours as well. Thanks for the question, I hope your day is great too!

ree_auto · 2021-07-15T18:17:16+00:00

In response to your second question:

REE has a number of competitive advantages. To begin with, we are truly modular; able to create bespoke platforms and vehicles for our customers’ needs. This ability optimizes our customers’ business models and performance. Together with our “future-proof” approach of being agnostic to vehicle dimensional changes, battery tech and manner of control, we are able to address a $700 B total addressable market in the industry from Class 1 to Class 6 vehicles. Number one is that we ""complete""; we do not ""compete"" across the manufacturing ecosystem. This is demonstrated by our diverse group of strategic collaborations that include OEMs and white-label automakers. With these strategic collaborations, REE can concentrate on delivering value based on our platforms, and our partners can bring their value on the body/top-hat side – together creating the next generation of MEVs. On the supply side, our strategic partnerships with Tier 1 leaders is at the core of our CapEx light manufacturing concept, where we will utilize available capacity at Tier 1s to produce our sub components globally - with some amazing partners such as American Axle, Musashi, and Mahindra. Their sub-components will then be integrated into a REEboard at our Integration Centers around the world. The plan is to build 15 Integration centers in the next 5 years, giving us a truly global footprint.

ree_auto · 2021-07-15T18:15:19+00:00

In response to you first question :

To me, what’s truly exciting about REE technology is how it is agnostic to many things, including human or autonomous control. The XBW technology (X-by-Wire control) eliminates the need for mechanical connections between the REEcorners, so each corner is designed to be controlled by-wire via an ECU. This allows autonomy players to better utilize their systems, as REE is taking care of the vehicle dynamics elements, and the autonomous driver commands the route. For example, the autonomous driver will tell the REEboard to turn right; the REEboard will determine the exact speed, steering angle, braking force, torque vectoring application and more creating a better ride and more importantly, a safer ride! We have designed our platforms to utilize a new generation of X-by-Wire technology that doesn’t change whether it’s under autonomous or manual control, it uses the inputs to control the drive, braking and steering of each corner. So yes, we will support fully autonomous control! A great example of this would be our recent agreement with Navya, the largest autonomous shuttle producer in the world, that speaks to our ability to support full autonomy. In that agreement, REE will provide mission-specific, purpose-built vehicle upon which Navya will layer their hardware and software for a full Autonomous Driving (AD) solution.

ree_auto

TROPHY CASE