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REE Automotive Posts First-Half 2025 Results and Accelerates Shift to Technology-First, Partnership Model

Story Highlights
  • REE Automotive is pivoting from vehicle production to a technology-first model, deepening OEM partnerships and signing key MOUs and a binding SDV shuttle deal.
  • First-half 2025 results show higher cash burn but a narrower GAAP loss, with REE executing sharp operating cost cuts to extend runway and support its new strategy.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
REE Automotive Posts First-Half 2025 Results and Accelerates Shift to Technology-First, Partnership Model

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The latest update is out from REE Automotive ( (REE) ).

On December 30, 2025, REE Automotive reported its unaudited financial results for the six months ended June 30, 2025, alongside a strategic shift from capital-intensive vehicle production to a technology-first model centered on collaborations with original equipment manufacturers and strategic partners. During the first half, the company converted a previously announced memorandum of understanding into a binding agreement with a leading technology company to develop a software-defined autonomous public transport shuttle based on its Zonal Architecture and REEcorner technology, with the program expected to generate up to about $107 million over two years after commencement if closing conditions are met; it also signed new MOUs with Mitsubishi Fuso to evaluate its SDV platform for commercial vehicles and with Cascadia Motion, a BorgWarner subsidiary, to co-develop a next-generation electric drive unit under a royalty-bearing, potentially exclusive distribution framework. Financially, REE ended June 30, 2025 with $54.7 million in cash and equivalents including a credit facility, saw free cash flow burn rise 31% year over year to $52.5 million mainly due to production-related costs for its P7 program, GAAP net loss narrow by 33% to $24.3 million largely due to non-cash warrant and derivative remeasurement income, and non-GAAP net loss increase 8% to $36.5 million; management also highlighted substantial operating cost cuts already achieved and targeted a further reduction to roughly $1.8 million in average monthly operating expenses by the end of the first quarter of 2026, signaling an aggressive effort to preserve liquidity and align its cost base with a partnership-driven, technology-licensing growth strategy.

The most recent analyst rating on (REE) stock is a Sell with a $0.75 price target. To see the full list of analyst forecasts on REE Automotive stock, see the REE Stock Forecast page.

Spark’s Take on REE Stock

According to Spark, TipRanks’ AI Analyst, REE is a Underperform.

REE Automotive’s overall stock score is heavily impacted by its poor financial performance, characterized by declining revenues, negative margins, and high leverage. The technical analysis indicates a bearish trend, and the valuation is unattractive due to negative earnings and no dividend yield. These factors collectively suggest significant risks and challenges for the company.

To see Spark’s full report on REE stock, click here.

More about REE Automotive

REE Automotive Ltd. is an Israel-based automotive technology company that develops and produces software-defined vehicle (SDV) technology and full by-wire platforms. Its advanced Zonal SDV Architecture is designed to integrate with legacy vehicle systems to enhance safety, performance, and reliability by centralizing key functions for greater modularity, redundancy, and over-the-air upgradability, targeting OEMs and partners seeking next-generation electrified and autonomous-ready platforms.

Average Trading Volume: 423,711

Technical Sentiment Signal: Sell

Current Market Cap: $23.47M

See more data about REE stock on TipRanks’ Stock Analysis page.

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