REE Automotive (REE) Q3 2024 earnings summary

Executive summary

• Reservations surged 230% year-over-year to $137 million, reflecting robust demand and multi-year production commitments from fleets and OEMs.

• Production of the flagship P7 electric truck began as planned, with first deliveries targeted for H1 2025 and ramp-up in H2 2025.

• Service network expanded to 80 locations, now one of North America's largest for commercial EVs.

• The company is positioned as a leader in software-defined vehicle and autonomous driving technology, with growing OEM and fleet interest and recognition at CES 2025.

Financial highlights

• Liquidity improved 47% quarter-over-quarter to $88.8 million, including $45.35 million from a direct offering and $15 million from Motherson.

• Free cash flow burn narrowed by 15% year-over-year due to operational efficiencies and near completion of P7 R&D.

• GAAP net loss for Q3 was $38.5 million, up from $10.8 million in Q2 2024 and $24.1 million in Q3 2023, mainly due to non-cash warrant and derivative remeasurement losses.

• Non-GAAP net loss was $16.8 million, compared to $12.4 million in Q2 2024; excluding R&D tax credits, non-GAAP net loss decreased by $1.3 million quarter-over-quarter.

• Secured up to $33 million in credit facilities for production ramp-up.

Outlook and guidance

• On track to deliver first P7 trucks in North America in H1 2025 and reaffirming bill-of-materials breakeven target for H2 2025 with production ramping to the low hundreds of vehicles.

• Anticipated average monthly cash burn of $5–6 million in 2025, with higher OpEx and CapEx in the first half as production ramps.

• Plans to expand credit lines as demand grows and to generate software-based revenue from OEMs and autonomous programs in the mid-to-long term.