REE Automotive (REE) Sidoti Micro-Cap Virtual Conference summary

Company overview and technology

• Focuses on software-defined vehicles (SDVs) with full by-wire technology, certified and operational in the U.S.

• Recognized for innovation, recently awarded most innovative automotive company for 2025 at CES.

• Vehicles use zonal architecture with six high-performance ECUs, meeting top safety and certification standards.

• Holds over 180 patents and emphasizes cybersecurity and upgradability.

• Engaged in autonomous vehicle programs, including a Level 4 partnership with Airbus at Charles de Gaulle Airport.

Market demand and go-to-market strategy

• Experiencing strong demand, with 230% growth in reservations last quarter.

• Employs a horizontal integration model, collaborating with partners for supply chain and assembly.

• Motherson manages the global supply chain, providing economies of scale and stability.

• Roush handles assembly in Detroit, enabling a CapEx-light approach.

• Dealer network covers over 80 U.S. locations, supporting sales and service for fleets.

Customer base and partnerships

• Serves around 30 diverse customers, including Penske and U-Haul, reducing dependency on any single client.

• Motherson holds a 19% stake and board seat, enhancing production scalability and purchasing power.

• Collaborates with OEMs for both electric and other power sources, offering platforms and technology components.

• Dealer network expansion outside North America is not planned in the near term, with focus on U.S. market.

• Software licensing is a growing revenue stream, with higher margins than hardware, but its share by 2027 remains uncertain.