REE Automotive (REE)
NASDAQ:REE
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REE Automotive
(NASDAQ:REE)
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Rating:39Underperform
Price Target:
$0.57
▼(-28.50% Downside)
Action:ReiteratedDate:12/03/25
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
Shift to technology-first, partnership model
Management's strategic pivot from building vehicles to licensing its Zonal SDV architecture and REEcorner technology materially reduces capital intensity and fixed manufacturing overhead. Over 2-6 months this improves scalability, margin potential, and allows faster market exposure via partners rather than sole-build commercialization.
Negative Factors
Severe revenue decline and negative margins
Rapidly falling revenues and persistent negative gross and net margins indicate the core product and commercialization model have not achieved scale or cost control. Over a multi-month horizon this undermines the firm's ability to generate sustainable operating profits and weakens prospects for self-funded growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Shift to technology-first, partnership model
Management's strategic pivot from building vehicles to licensing its Zonal SDV architecture and REEcorner technology materially reduces capital intensity and fixed manufacturing overhead. Over 2-6 months this improves scalability, margin potential, and allows faster market exposure via partners rather than sole-build commercialization.
Read all positive factors
REE Automotive (REE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$20.36M
Dividend YieldN/A
Average Volume (3M)735.37K
Price to Earnings (P/E)―
Beta (1Y)1.47
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees244
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Recreational Vehicles
Share Statistics
EPS (TTM)N/A
Shares Outstanding28,240,362
10 Day Avg. Volume1,931,390
30 Day Avg. Volume735,372
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)6.08
Price to Sales (P/S)768.80
P/FCF Ratio-1.84
Enterprise Value/Market Cap0.11
Enterprise Value/Revenue10.42
Enterprise Value/Gross Profit-0.13
Enterprise Value/Ebitda-0.02
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.97
Revenue Forecast (FY)$9.00M
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...
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 customizab...
REE Automotive Earnings Call Summary
Earnings Call Date:May 15, 2025
(Q4-2024)
| % Change Since: |
Next Earnings Date:May 26, 2026
Earnings Call Sentiment Neutral
REE Automotive has achieved significant technological milestones and improved its financial position. However, the company faces substantial challenges due to U.S. tariffs and trade policies, leading to a temporary production pause and doubts about its ability to continue as a going concern. While there are positive developments in software innovation and collaborations, the negative impacts of the macroeconomic environment weigh heavily on the company's outlook.Positive Updates
First Federal Motor Vehicle Safety Standard Certification
REE Automotive received the first FMVSS certification for a full-by-wire vehicle in the U.S., marking a significant milestone in the industry.
Negative Updates
Impact of U.S. Tariffs and Trade Policy
U.S. tariffs and trade policies have significantly impacted REE's supply chain, leading to a temporary production pause.
Read all updates
Q4-2024 Updates
Positive
Negative
First Federal Motor Vehicle Safety Standard Certification
REE Automotive received the first FMVSS certification for a full-by-wire vehicle in the U.S., marking a significant milestone in the industry.
Read all positive updates
Company Guidance
During the REE Automotive conference call discussing the fourth quarter and full-year 2024 financial results, guidance was provided on several key metrics and strategic changes. The company highlighted a significant increase in demand for their technology, achieving milestones such as the first Federal Motor Vehicle Safety Standard Certification for a full-by-wire vehicle in the U.S. They also launched the REEai Cloud in collaboration with Geotab. However, due to challenges such as U.S. tariffs impacting their supply chain, REE decided to temporarily pause production to focus on cost reduction and accelerate their software business. Financially, they reported a GAAP net loss of $111.8 million for 2024, an improvement from 2023, with a non-GAAP net loss of $70.3 million. Their liquidity was bolstered to $72 million, including an $18 million credit facility, through successful securities offerings. The company plans to prioritize enhancing their capital position and focus on a subscription-based revenue model, with an expected Q1 2025 cash balance of approximately $79.6 million.REE Automotive Financial Statement Overview
Summary
Income Statement
15
Very Negative
Balance Sheet
25
Negative
Cash Flow
20
Very Negative
| Breakdown | TTM | Mar 2025 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 207.00K | 183.00K | 1.61M | 0.00 | 6.00K | 388.00K |
| Gross Profit | -16.52M | -3.50M | -7.46M | -547.00K | -989.00K | -259.00K |
| EBITDA | -120.38M | -105.58M | -114.09M | -100.76M | -503.56M | -67.93M |
| Net Income | -100.10M | -111.75M | -114.21M | -107.42M | -505.33M | -67.33M |
Balance Sheet | ||||||
| Total Assets | 89.54M | 130.28M | 137.90M | 215.01M | 292.94M | 49.01M |
| Cash, Cash Equivalents and Short-Term Investments | 54.67M | 72.26M | 85.63M | 153.62M | 275.77M | 46.37M |
| Total Debt | 38.02M | 50.65M | 38.68M | 21.37M | 0.00 | 0.00 |
| Total Liabilities | 53.59M | 107.15M | 59.83M | 39.60M | 42.53M | 3.23M |
| Stockholders Equity | 35.95M | 23.13M | 78.08M | 175.41M | 250.40M | 45.78M |
Cash Flow | ||||||
| Free Cash Flow | -89.04M | -76.52M | -93.02M | -123.64M | -61.55M | -13.66M |
| Operating Cash Flow | -78.81M | -68.98M | -89.27M | -112.58M | -59.14M | -13.06M |
| Investing Cash Flow | 13.27M | 35.97M | 49.62M | -106.83M | -748.00K | -2.26M |
| Financing Cash Flow | 83.45M | 63.55M | 23.97M | 2.43M | 291.30M | 33.12M |
REE Automotive Technical Analysis
Neutral
0.80
Price Trends
0.59
Positive
0.68
Negative
0.73
Negative
Market Momentum
0.02
Negative
59.74
Neutral
85.91
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REE, the sentiment is Neutral. The current price of 0.8 is above the 20-day moving average (MA) of 0.59, above the 50-day MA of 0.59, and above the 200-day MA of 0.73, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 59.74 is Neutral, neither overbought nor oversold. The STOCH value of 85.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for REE.
REE Automotive Risk Analysis
REE Automotive disclosed 88 risk factors in its most recent earnings report. REE Automotive reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
REE Automotive Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
42 Neutral | $2.01M | -0.31 | ― | ― | -66.16% | 78.81% | |
42 Neutral | $26.40M | >-0.01 | -16.81% | ― | -1.08% | 97.76% | |
40 Underperform | $5.27M | -0.40 | -52.42% | ― | -34.70% | 36.13% | |
39 Underperform | $20.36M | -0.37 | ― | ― | ― | ― |
* Consumer Cyclical Sector Average
REE
REE Automotive
0.66
-2.14
-76.53%
VMAR
Vision Marine Technologies
2.02
-217.98
-99.08%
EZGO
EZGO Technologies
1.26
-6.64
-84.00%
VEEE
Twin Vee PowerCats
0.27
-3.83
-93.44%
REE Automotive Corporate Events
REE Automotive Shareholders Approve All AGM Proposals as COO Plans February 2026 Departure
Jan 29, 2026
On January 22, 2026, REE Automotive Ltd. held its Annual General Meeting of Shareholders at its headquarters in Kibbutz Glil-Yam, Israel, where investors approved all agenda items by the required majorities under Israeli Companies Law and the comp...
REE Automotive Posts First-Half 2025 Results and Accelerates Shift to Technology-First, Partnership Model
Dec 30, 2025
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...
REE Automotive Announces 2025 Annual General Meeting for January 2026
Dec 15, 2025
REE Automotive Ltd. has announced its 2025 Annual General Meeting of Shareholders, scheduled for January 22, 2026, at its headquarters in Israel. The meeting will address several key proposals, including the re-election of directors, an amendment ...
REE Automotive Partners with Mitsubishi Fuso for Software-Defined Vehicle Development
Nov 18, 2025
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 invol...
REE Automotive Announces Approval of Proposals at Special General Meeting
Nov 17, 2025
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 ac...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.