Tel Aviv-based REE Automotive Ltd. (NASDAQ: REE) saw its shares drop slightly, shortly after the open on Tuesday, as the automotive technology leader and provider of electric vehicle (EV) platforms announced its financial results for the first quarter ended March 31, 2023.
REE ended fiscal 1Q23 with liquidity of $126 million with no debt; anticipates liquidity of $65 million at year end, following the production of initial 25 P7 vehicles for internal testing and pilot deliveries.
REE remains focused on zero emission Class 3-5 vehicles built on its P7 platforms; ongoing activities support previously announced planned certification completion in 2H23; initial pilot vehicle deliveries to customers targeted to begin by the end of year 2023.
Expands dealer network in the US, with eight dealers and three fleet customers, with initial orders of approximately 100 vehicles1 which are designed to meet the growing demand in part driven by the Advanced Clean Fleet (ACF) regulation. These dealers also facilitate relationships and adoption by fleets, which we believe could purchase hundreds or thousands of vehicles per year.
REE announces two-phase production road map; Phase 1 anticipates production of vehicles in the low hundreds in 2024, with breakeven gross margin on a unit level by the end of that year. Phase 2 targets production in low - mid thousands of vehicles and breakeven EBITDA by the end of 2025.
REE shares fell two cents, or 5%, to 38 cents.
