Company: REE
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001628280-25-025661
Chunk: 64

Company: REE Automotive Ltd.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 64
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 regulatory enforcement actions against REE, and misuse of or failure to secure personal information could also result in violation of data privacy laws and regulations, proceedings against REE by governmental entities or others, and damage to its reputation and credibility, and could have a negative impact on revenues and profits.

Significant capital and other resources are required to protect against information security breaches or to comply with REE’s privacy policies or privacy-related legal obligations and additional significant resources may be required to alleviate problems caused by such breaches in the event that they occur. The resources required increase over time as the methods used by hackers and others engaged in online criminal activities are increasingly sophisticated and constantly evolving. For example, we have added new product security features in preparation for our platform deliveries in 2025. In addition, REE intends to log certain data about each vehicle’s use in order to provide vehicle diagnostics and servicing on its vehicles. REE’s customers and/or future customers may object to the use of this data, which may increase REE’s vehicle maintenance costs, including as a result of the need to obtain vehicle servicing at a service center rather than automatically over-the-air, or may cause more limited customer servicing due to the absence of real-time data from customer vehicles that have opted out customer vehicles, each of which can harm REE’s business prospects.

Any failure or perceived failure by REE to prevent information security breaches or to comply with privacy policies or privacy-related legal obligations, or any compromise of security that results in the unauthorized release or transfer of personally identifiable information or other customer data, could cause REE’s potential customer base to lose trust in REE and could expose REE to legal claims. Any perception by the public that online transactions or the privacy of user information are becoming increasingly unsafe or vulnerable to attacks could inhibit the growth of online retail and other online services generally and decrease demand in the last-mile and mid-market delivery markets, which may reduce the number of orders REE receives. Moreover, if a compromise of data were to occur, REE may become liable under its contracts with other parties and under applicable law for damages and incur penalties and other costs to respond to, investigate and remedy such an incident. REE’s systems, networks and physical facilities could be breached or personal information could otherwise be compromised due to employee error or malfeasance, if, for example, third parties attempt to fraudulently induce REE’s employees to disclose information or user names and/or passwords. Third parties may also

Table of C ontents

exploit vulnerabilities in, or obtain unauthorized