Company: REE
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001628280-25-025661
Chunk: 21

Company: REE Automotive Ltd.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 21
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 no assurance, therefore, that there will not be some components sourced from suppliers subject to sanctions compliance with respect to Russia nor that the resulting disruption to the supply chain due to such sanctions will not have an adverse impact on REE’s business and results of operations.

In the event geopolitical tensions deteriorate further or fail to abate, additional governmental sanctions may be enacted that could adversely impact the global economy, banking and monetary systems, markets, and the operations of REE and its suppliers.

In addition, REE may not be able to access a portion of its existing cash, cash equivalents and investments due to market conditions. If other banks and financial institutions enter receivership or become insolvent in the future in response to financial conditions affecting the banking system and financial markets, REE’s ability to access its existing cash, cash equivalents and investments may be threatened and could have a material adverse effect on its business and financial condition.

If and when we resume manufacturing, we may have difficulty successfully resuming our production.

Due to what we believe to be unforeseen and unpreventable circumstances surrounding U. S. tariffs and trade policy, among other factors, we have delayed the manufacturing our vehicle products. If and when we resume manufacturing, we may have difficulty maintaining our current suppliers and contract manufacturer, finding replacement suppliers or contract manufacturers, and/or maintaining customer interest in our products, among other items. If we are unable to successfully resume such production under those circumstances, it would have an adverse impact on our business, financial condition, and ability to continue as a business.

Risks Related to REE’s Strategy

REE’s business model has not been proven and any failure to obtain significant orders for its products would adversely affect our operating results, business, or reputation, resulting in substantial liabilities that may exceed its resources.

REE’s business model is unique because REE can market and sell our products individually, such as our P7 lineup, or as a full or partial “ Powered by REE™” or other technology solution. This approach depends in large part on REE’s ability to demonstrate that its products, including its X-By-Wire technology, is road-tested and road-ready and that it is certified for public roads under applicable regulatory standards to OEMs and to maintain existing agreements or enter into definitive agreements that formalize its relationship with customers, suppliers, Authorized Dealers and strategic partners, as well as retaining and growing customer orders following trials of initial test fleets, if and when such deliveries are made. Investors should be aware of the difficulties normally encountered by a new player in