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

Company: REE Automotive Ltd.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 25
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 for our SDV products to be implemented even after a design win.

In connection with our design wins, we would further expect to receive preliminary estimates from OEMs of their anticipated production volumes for the models relating to those design wins. Those estimates may be revised significantly by the OEMs, potentially multiple times, and may not be representative of future production volumes associated with those design wins, which could be significantly higher or lower than estimated. Furthermore, long development cycles or vehicle model cancellations or postponements would adversely affect our business, results of operations, and financial condition.

The success of our SDV products will depend on their effective deployment and operation by third parties.

The success of our SDV products will depend on our customers and partners, effectively deploying and operating our products in the future, and their failure to do so may result from factors outside our control. As part of our go-to-market strategy, we expect to market our SDV products to OEMs and technology companies. Even if we are successful in entering into definitive agreements with such customers, such third parties may terminate our partnerships with them, including as a result of a change in its internal development strategy. Any failures by third parties to effectively deploy and operate our SDV products, or the termination of our relationships with any such third parties, would adversely affect our business, results of operations, and financial condition.

If and when REE resume manufacturing, REE’s ability to induce follow-on sales following the initial sale of vehicles to our customers depends, in part, on its ability to prove that REE’s products are to the full satisfaction of such customers and to establish and maintain confidence in REE’s business prospects among such customers and others within its industry.

REE has received initial orders for both the P7-C and P7-S. If and when REE resumes manufacturing, such orders present an opportunity for potentially receiving additional follow-on orders in the future that could be more meaningful and impactful from a financial perspective. Customers, suppliers, dealers and strategic partners may be less likely to purchase REE’s products if it does not timely deliver products in accordance with the technical specifications or if the customers do not believe that REE’s business will succeed or that its operations, including providing such partners with maintenance and service through qualified supplier support operations, which has yet to be established, for many years. Similarly, suppliers and other third parties will be less likely to invest time and resources in developing business relationships with REE if they are not convinced that its business will succeed. Accordingly, to build, maintain and grow its