REE Automotive Ltd. (“REE” or the “Company”), an automotive technology company that develops and builds software-defined vehicle technology and a provider of full by-wire electric trucks and platforms, today announced its fourth quarter and fiscal year 2024 financial results.
“2024 was a breakthrough year for REE. We successfully accelerated our vision of software defined vehicle (SDV) technology from concept to commercial reality in 2024. We are seeing growing interest in our SDV platform from OEMs and technology companies, as evidenced by our reservations. We are encouraged by the notable interest in our software-defined platform in the market and we look forward to empowering our customers, not competing with them, with the tools and intelligence to build smarter, safer and more adaptable vehicles,” said Daniel Barel, Co-Founder and Chief Executive Officer of REE.
“We entered 2025 with positive momentum. However, the broader macroeconomic environment has changed significantly in recent months. The uncertainty created by U.S. tariffs and trade policy has been disruptive to the global automotive industry, and its global supply chains, thus impacting our production ramp. In turn, this has made our quest to ramp our own production both more challenging and more risky. In light of this new environment, we made the prudent decision to make changes to our previous plans. Notably, the decision to implement a temporary pause to prior production plans while we monitor ongoing manufacturing and supply chain conditions. Commensurately, we have taken actions to significantly reduce operating expenses. In addition, in March 2025 we raised new equity capital to ensure we are well positioned especially given today’s challenging market environment and in light of the growing demand for our SDV technology, as the early stages of production ramp are expensive and impose a financial burden. These were not easy decisions, but they reflect our commitment to ensure the Company’s long-term viability and success.
“The critical question for REE in recent years has been identifying the right path to bring our technology to the customers who need it most. We are seeing that answer through a path of deploying our technology through less capital-intensive approaches, including licensing and partnership models. We are actively advancing several commercial opportunities along these lines, and we remain optimistic in our ability to serve customers and pursue growth in this way, even in the face of broader industry and trade headwinds. To be clear, production remains a part of our long-term strategy; the pause is presently seen as temporary. Heightened uncertainty in the current environment has led us, for now, to de-emphasize a near-term large-scale production ramp. We believe that this pause allows us to preserve cash, giving flexibility to adapt as market conditions evolve.”
“The Company has technology that serves unmet customer needs, and we are pursuing low-capital intensity routes to market,” said Daniel Barel.
Q4 and 2024 year-end financial results and recent highlights
- $72.3 million in cash & cash equivalents as of December 31, 2024, compared to $85.6 million in cash & cash equivalents and short-term investments as of December 31, 2023. Each inclusive of a credit facility in the amount of $18 million and $15 million, respectively.
- Free Cash Flow (FCF) burn continued to narrow with 18% decrease year-over-year (YoY) related to continuing expenses alignment with our 2024 business plan in an effort to obtain operational efficiencies and substantial completion of the research and development (“R&D”) phase of the P7 program.
- U.S. Generally Accepted Accounting Principles (GAAP) net loss in 2024 was $111.8 million compared to $114.2 million in 2023. The year-over-year improvement was primarily driven by lower engineering and R&D related expenses, following the substantial completion of the R&D phase of the P7 program, as well as the continued realignment with our 2024 business plan that lowered overall operating expenses. These improvements were partially offset by non-cash losses related to the remeasurement of warrants and derivative liabilities, which were adversely affected by an increase in REE’s share price at the end of 2024.
- Non-GAAP net loss in 2024 was $70.3 million compared to $98.3 million in 2023. The YoY improvement was primarily driven by lower engineering and R&D expenses, following the substantial completion of the R&D phase of the P7 program, as well as continued realignment with our 2024 business plan that lowered overall operating expenses.
- Fourth quarter 2024 GAAP net loss was $37.3 million compared to $38.5 million in Q3 2024 and $35.2 million in Q4 2023. The quarter-over-quarter improvement was primarily driven by lower non-cash losses from the remeasurement of warrants and derivative liabilities, partially offset by higher cost of revenues associated with the production of P7 vehicles. The year-over-year increase in net loss was primarily driven by non-cash losses from the remeasurement of warrants and derivative liabilities, partially offset by increased non-recurring engineering development costs in Q4 2023.
- Non-GAAP net loss in the fourth quarter was $19.8 million compared to $16.8 million in Q3 2024 and $32.2 in Q4 2023. The quarter-over-quarter increase in net loss was primarily driven by a higher cost of revenues associated with the production of P7 vehicles. The year-over-year improvement was mainly attributed to higher non-recurring engineering development costs in Q4 2023 compared to Q4 2024.
- Raised approximately $60 million (gross) in 2024 including approximately $15 million in March, led by M&G, and approximately $45 million in September, led by M&G and Motherson.
- Raised an additional approximately $36.5 million (gross) in the first quarter of 2025 through two registered direct offerings, which were respectively led by Motherson and M&G.
As part of our ongoing financial review, due to the recent changes in the macroeconomic environment and tariff situation negatively affecting our ability to bring our P7 to the market as planned and affecting our ability to raise debt, which directly impact our revenue forecast, management has determined that there is a substantial doubt about our ability to continue as a going concern for the next twelve months. Our plans to alleviate this going concern includes temporarily pausing production and significantly reducing costs, adjusting headcount with a view to optimize the corporate structure to become more flexible in the face of industry uncertainty. We will announce details of this in the near future, but for now, investors should expect significant reduction in operational expenses alongside the production pause.
A reconciliation of GAAP to non-GAAP measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”
SOURCE: REE Automotive
