REE Automotive (REE) AI Stock Analysis

• Market Cap: $28.34M
• Dividend Yield: N/A
• Average Volume (3M): 735.37K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.50
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 244
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Recreational Vehicles
• EPS (TTM): N/A
• Shares Outstanding: 28,240,362
• 10 Day Avg. Volume: 1,931,390
• 30 Day Avg. Volume: 735,372
• PEG Ratio: 0.03
• Price to Book (P/B): 6.08
• Price to Sales (P/S): 768.80
• P/FCF Ratio: -1.84
• Enterprise Value/Market Cap: 2.09
• Enterprise Value/Revenue: 323.82
• Enterprise Value/Gross Profit: -13.75
• Enterprise Value/Ebitda: -0.59
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 39 Underperform
• Price Target: $0.75 ▼(-5.44% Downside)

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.

Positive Factors

Strategic Partnership

The partnership with Mitsubishi Fuso for software-defined vehicle development enhances REE's market position and technological capabilities, potentially leading to future supply agreements and industry leadership in commercial vehicle innovation.

Innovative Technology

REEcorner technology integrates critical vehicle components into a compact wheel arch, offering OEMs and fleet operators efficient space utilization and enhanced vehicle performance, which could drive long-term adoption and revenue growth.

Market Expansion

By partnering with automotive manufacturers, REE expands its customer base and facilitates entry into new markets, potentially increasing its revenue streams and market share in the EV platform sector.

Negative Factors

Financial Distress

Declining revenues, negative profit margins, and high leverage indicate significant financial distress, which could hinder REE's ability to invest in R&D and sustain operations, impacting long-term viability.

Negative Cash Flows

Ongoing cash burn and reliance on external financing highlight operational inefficiencies and financial instability, posing risks to REE's ability to fund future growth and innovation.

Declining Revenue

Significant revenue decline reflects challenges in market demand and competitive positioning, potentially limiting REE's ability to scale operations and achieve sustainable growth.

REE Automotive Business Overview & Revenue Model

Company Description

REE Automotive (REE) is a technology company specializing in electric vehicle (EV) platforms and modular designs that enable the integration of various vehicle types, including commercial and passenger vehicles. The company focuses on developing a unique REEcorner technology, which integrates critical vehicle components into a compact wheel arch, allowing for more efficient use of space and enhanced vehicle performance. REE operates in the automotive and transportation sectors, targeting original equipment manufacturers (OEMs) and commercial fleet operators looking for innovative EV solutions.

How the Company Makes Money

REE Automotive generates revenue primarily through the licensing of its proprietary REEcorner technology and the sale of its modular EV platforms to OEMs and fleet operators. The company partners with automotive manufacturers to provide customizable solutions that cater to specific vehicle requirements, enabling them to reduce production costs and time-to-market. Additionally, REE may earn revenue through engineering services and consulting related to vehicle design and integration, as well as potential collaborations with technology firms to enhance their platform capabilities. Strategic partnerships with key industry players further bolster REE's market presence and contribute to its earnings by expanding its customer base and facilitating entry into new markets.

REE Automotive Financial Statement Overview

Summary

REE Automotive is facing severe financial challenges. The income statement shows declining revenues and negative profit margins, indicating operational inefficiencies. The balance sheet reveals high leverage and declining equity, suggesting increased financial risk. Cash flows are negative, highlighting reliance on external financing and ongoing cash burn issues.

Income Statement

REE Automotive is experiencing significant challenges in its income statement. The company has shown a declining revenue trend from 2020 to 2024, with the latest revenue of $183,000 in 2024 compared to $1,608,000 in 2023. Gross profit margins are negative due to higher costs than revenue, indicating difficulty in managing production or operational costs. The net profit margin is also severely negative, reflecting substantial net losses over the years. EBIT and EBITDA margins are consistently negative, showing continued operational inefficiencies. These factors indicate significant financial distress.

Balance Sheet

The balance sheet reveals high leverage and declining equity. The debt-to-equity ratio increased from 2023 to 2024 due to rising total debt and decreasing stockholders' equity. Return on equity remains negative, driven by consistent net losses. The equity ratio has decreased significantly, suggesting higher financial risk and reduced financial stability. The company's asset base has shrunk, implying potential challenges in sustaining operations.

Cash Flow

Cash flows are under pressure, with negative operating and free cash flows indicating a reliance on external financing. The operating cash flow to net income ratio is unfavorable, suggesting that operating activities are not generating sufficient cash. Free cash flow to net income ratio remains negative, highlighting ongoing cash burn issues. Despite some improvement in financing cash flow, the company struggles to achieve positive cash flow from its core operations.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	183.00K	1.61M	0.00	6.00K	388.00K
Gross Profit	-3.50M	-7.46M	-547.00K	-989.00K	-259.00K
EBITDA	-105.58M	-114.09M	-100.76M	-503.56M	-67.93M
Net Income	-111.75M	-114.21M	-107.42M	-505.33M	-67.33M
Balance Sheet
Total Assets	130.28M	137.90M	215.01M	292.94M	49.01M
Cash, Cash Equivalents and Short-Term Investments	72.26M	85.63M	153.62M	275.77M	46.37M
Total Debt	50.65M	38.68M	21.37M	0.00	0.00
Total Liabilities	107.15M	59.83M	39.60M	42.53M	3.23M
Stockholders Equity	23.13M	78.08M	175.41M	250.40M	45.78M
Cash Flow
Free Cash Flow	-76.52M	-93.02M	-123.64M	-61.55M	-13.66M
Operating Cash Flow	-68.98M	-89.27M	-112.58M	-59.14M	-13.06M
Investing Cash Flow	35.97M	49.62M	-106.83M	-748.00K	-2.26M
Financing Cash Flow	63.55M	23.97M	2.43M	291.30M	33.12M

REE Automotive Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.79
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REE, the sentiment is Negative. The current price of 0.79 is below the 20-day moving average (MA) of 0.82, below the 50-day MA of 0.93, and below the 200-day MA of 1.84, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 44.19 is Neutral, neither overbought nor oversold. The STOCH value of 48.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for REE.

REE Automotive Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
EZGO	47 Neutral	$891.57K	-0.11	-7.28%	―	-1.08%	97.76%
VMAR	44 Neutral	$4.40M	>-0.01	-337.93%	―	452.42%	97.39%
VEEE	42 Neutral	$5.95M	-0.33	-59.55%	―	-34.70%	36.13%
REE	39 Underperform	$28.34M	-0.12	―	―	―	―

REE Automotive Corporate Events

REE Automotive Partners with Mitsubishi Fuso for Software-Defined Vehicle Development

On November 18, 2025, REE Automotive announced a strategic collaboration with Mitsubishi Fuso Truck and Bus Corporation to develop a software-defined vehicle using REE’s zonal SDV architecture and x-by-wire technology. This partnership involves a one-year evaluation phase where Mitsubishi Fuso will assess REE’s technology by integrating it into a Mitsubishi Fuso eCanter electric truck. This collaboration aims to accelerate Mitsubishi Fuso’s transition to smarter, safer, and upgradable software-defined trucks, potentially positioning REE as a supplier for future vehicle platforms. This initiative is expected to set a new industry benchmark for commercial vehicles, supporting autonomous solutions and enhancing logistics capabilities.

REE Automotive Announces Approval of Proposals at Special General Meeting

On November 13, 2025, REE Automotive Ltd. held a Special General Meeting of Shareholders at its headquarters in Kibbutz Glil-Yam, Israel. During the meeting, all proposals on the agenda were voted upon and approved by the necessary majority, in accordance with Israeli law and the company’s articles of association. This approval signifies a positive step for the company, potentially impacting its strategic direction and stakeholder confidence.

REE Automotive Announces Special Shareholder Meeting for Executive Compensation Approval

REE Automotive Ltd. has announced a Special General Meeting of Shareholders scheduled for November 13, 2025, at its headquarters in Kibbutz Glil-Yam, Israel. The meeting will address the approval of an amended compensation policy for executive officers and directors, as well as special cash bonus awards and amendments to the terms of employment for its co-founders, Daniel Barel and Ahishay Sardes. The board of directors recommends voting in favor of these proposals, which are crucial for aligning executive incentives with company goals and ensuring leadership stability.