REE Automotive (REE) Q2 2024 earnings summary

Executive summary

• Achieved major milestones, including a transformational supply chain agreement with Motherson and the kickoff of U.S. production with Roush for the P7 product line, with deliveries planned for 2025.

• Secured $45.35 million in funding, supporting production capital needs and U.S. manufacturing kickoff.

• Order book increased by 15% quarter over quarter and 289% year over year, now valued at $60 million, reflecting strong demand from fleets and OEMs.

• Dealer and service network expanded to 78 locations across North America, with partnerships for demo and evaluation programs with Penske and U-Haul.

• Airbus selected REE technology for autonomous vehicle testing in its Optimate project, highlighting technology leadership.

Financial highlights

• Liquidity at quarter end was $60.5 million, including a $15 million credit facility.

• Net loss narrowed to $10.8 million, a 57% decrease quarter over quarter and 59% year over year.

• Non-GAAP net loss for Q2 2024 was $12.4 million, down 41% quarter over quarter and 43% year over year.

• Free cash flow burn reduced by 19% quarter over quarter and 17% year over year.

• Q2 2024 revenue was $651,000, with a gross loss of $651,000 and operating loss of $15.6 million.

Outlook and guidance

• U.S. production of the P7 line to begin in Q4 2024, with first deliveries expected in 2025.

• Strategic agreements and capital raise expected to accelerate ability to service customers at scale and improve unit costs.

• Revised production and revenue plan anticipated to accelerate path to positive cash flow and margins.

• Guidance to be updated once integration with Motherson progresses further.

• Anticipates significant order growth and improved free cash flow generation as production ramps.