REE Automotive (REE) AI Stock Analysis

• Market Cap: $39.86M
• Dividend Yield: N/A
• Average Volume (3M): 735.37K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.70
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 244
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Recreational Vehicles
• EPS (TTM): -0.66
• 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: 1.49
• 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

• Rating: 44 Neutral
• Price Target: $1.50 ▲(15.38% Upside)

REE Automotive's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues and negative profit margins. Technical analysis provides some positive signals but is overshadowed by valuation concerns due to negative earnings and lack of dividends. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Innovative Business Model

REE's unique approach to integrating critical vehicle components into each wheel arch offers significant design flexibility and space optimization, positioning the company well in the evolving electric vehicle market.

Strategic Partnerships

By forming strategic partnerships and joint ventures, REE expands its market reach and leverages its technological innovations, potentially enhancing its competitive position and revenue streams over time.

Technological Innovation

The integration of multiple vehicle components into a single module showcases REE's technological prowess, potentially driving demand for its platforms as the auto industry shifts towards more efficient and versatile electric vehicles.

Negative Factors

Declining Revenue

The significant decline in revenue highlights challenges in market penetration and sales execution, which could hinder the company's ability to scale and achieve profitability in the near to medium term.

High Leverage

Increased debt levels and reduced equity raise concerns about financial stability and risk, potentially limiting REE's ability to invest in growth opportunities and weather economic downturns.

Negative Cash Flow

Ongoing negative cash flow indicates reliance on external financing, which may not be sustainable long-term, posing risks to operational continuity and strategic investments.

REE Automotive Business Overview & Revenue Model

Company Description

REE Automotive Ltd. operates in the e-mobility business. The company develops REEcorner technology, which integrates vehicle drive components, including steering, braking, suspension, powertrain, and control into the arch of the wheel. The company also develops REEboard, a flat and modular EV chassis. The company is headquartered in Herzliya, Israel.

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, with declining revenues, negative profit margins, high leverage, and negative cash flows. These factors indicate significant financial distress and operational inefficiencies.

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: Positive
• Last Price: 1.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REE, the sentiment is Positive. The current price of 1.3 is above the 20-day moving average (MA) of 0.96, above the 50-day MA of 0.82, and below the 200-day MA of 2.91, indicating a neutral trend. The MACD of 0.15 indicates Negative momentum. The RSI at 71.73 is Negative, neither overbought nor oversold. The STOCH value of 51.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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%
VEEE	46 Neutral	$5.37M	―	-50.61%	―	-49.65%	17.30%
REE	44 Neutral	$39.86M	―	―	―	―	―
VMAR	44 Neutral	$4.88M	―	-152.23%	―	-66.16%	78.81%
EZGO	42 Neutral	$958.54K	―	-7.28%	―	-1.08%	97.76%

REE Automotive Corporate Events

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.