Company: REE
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001628280-25-025661
Chunk: 29

Company: REE Automotive Ltd.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 29
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 other hand, there have been several EV competitors that have recently declared bankruptcy or are engaging in restructuring, such as Nikola Corp., Arrival S.à r. l, Fisker Inc., and Lion Electric Inc., which

Table of C ontents

makes the EV market in general, and REE in particular, appear more speculative and less of a solidified alternative to ICE vehicles. As a result, potential customers have been and may continue to be more cautious when considering the purchase of REE’s products, including with respect to transitioning their fleets from ICE to our software-defined vehicles.

Lower demand and/or heavy competition for that demand may lead to lower vehicle unit sales and increased unsold inventory, which may result in downward price pressure and adversely affect REE’s business, financial condition, operating results, and prospects.

REE operates in a market that is highly competitive against other technology companies and OEMs seeking to create their own in-house SDV technology solutions.

The drive by wire and software defined vehicle market are highly competitive, and we expect they will become even more competitive in the future. Our future success will depend on, among other things, our ability to continue developing superior advanced technology to remain competitive with our existing and any new competitors. Competition is based on, among other things, cost efficiency, reliability, the ability to develop and deploy increasingly complex technologies that provide for vehicle, passenger, and pedestrian safety in compliance with existing and future regulations, the ability to gather or access large validation datasets in order to train the required software and to continuously harvest new data in real-time, the ability to cost-effectively deploy hardware, the ability to integrate technologies and hardware with overall vehicle design and production, adoption by OEMs, and the ability to develop and maintain strategic relationships with other participants in the automotive industry.

A growing number of established and new technology companies and automobile manufacturers have entered, or will enter our target market. Some of our competitors have significantly greater or better-established resources than we do to devote to the design, development, manufacturing, distribution, promotion, sale, and support of their SDV technology. Automakers who seek to develop their own in-house solutions may also become indirect competitors. Some OEMs that may incorporate our products may decide to design in-house solutions to replace our SDV products that they currently implement. In addition, other Tier 1 suppliers may be developing or may in the future develop competing solutions. Additional competitors that could emerge include large technology companies that are resource rich and able to deploy such resources to compete, as well as companies that are able