REE - REE Automotive stock drives lower as liquidity draws scrutiny
2023-05-23 09:35:09 ET
REE Automotive ( NASDAQ: REE ) shares slid over 5% shortly after the market open on Tuesday after posting continued losses ahead of a planned certification for its EV offerings.
The Israeli auto startup said that it “remains focused on zero emission Class 3-5 vehicles built on its P7 platforms” which are headed for certification in the second half of the year. The company anticipates the first deliveries to be made by the end of the year with the production of vehicles “in the low hundreds” starting in 2024. Production is expected to progress toward the “mid-thousands of vehicles” by 2025, when the company expects to reach breakeven EBITDA.
As of the close of the first quarter, the company reported $126M in liquidity. However, this is due to fall to $65M by year end as pilot deliveries roll off the line. In order to reach the projected production in the thousands, the company expects it will require about $80M to $100M.
As such, a quarterly shareholder letter states the company “will explore options for raising debt or equity” in order to sustain the projected ramp in production. Management expects to “shed more light” on the plan to raise capital later in 2023.
Shares of REE Automotive ( REE ) fell 5% shortly after Tuesday’s market open.
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REE Automotive stock drives lower as liquidity draws scrutiny