REE - REE Automotive lightens loss reiterates full-year guide

REE Automotive ( NASDAQ: REE ) came closer to profits than anticipated and reiterated its full year guide on Tuesday.

The Israeli auto company posted an adjusted EPS loss of $0.07, less than the anticipated loss of $0.11. The company also touted over $200M in cash and short-term investments to sustain the company in coming quarters as it continues to pursue revenue.

“We continue executing on our plan and remain on track and on budget as we make progress towards production in 2023,” CEO Daniel Barel said. “We believe there is a significant opportunity to help companies achieve their commitments to electrification and carbon-neutrality, and we see the potential for substantial orders after real-world evaluations.”

He added that the company recently tested its electric walk-in van built with body manufacturing leaders EAVX and Morgan Olson. Barrel expects “orders from leading fleet operators for test vehicles” over the course of the next few months. Additionally, the company expects to start delivering the first test vehicles to potential customers for the P7-B in the near term.

“We believe we are well-positioned in the last- and mid-mile delivery market as we prepare to scale production,” Barrel concluded.

The company reiterated its 2022 full-year year guidance for non-GAAP operating expenses of between $100 and $120M and expenses and investments related to the establishment of the Company’s initial production capacity of approximately $30M.

Still, the loss-making manufacturer announced more financial maneuvering during the quarter.

The company filed a shelf registration statement to issue “up to $200M of REE’s Class A ordinary shares, debt securities, rights, warrants and/or units.” A press release explained that REE intends to allocate up to $75M of the shelf registration to the sale of Class A ordinary shares in an at-the-market program to be entered into once the registration statement is declared effective.

Shares fell 5.33 % shortly after the market open on Tuesday. The stock has slid nearly 75% since the start of 2022.

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