Company: REE
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001628280-25-025661
Chunk: 50

Company: REE Automotive Ltd.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 50
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 regulations with a focus on eliminating any “electric vehicle mandates” and terminating “state emission waivers that function to limit sales of gasoline-powered vehicles”, and modifying and/or eliminating specified GHG standards. Consequently, the availability of certain tax credits or other government incentives and our ability and that of our customers and competitors to benefit from these credits and incentives remain uncertain at this time. Moreover, the development of an alternative fuel besides electricity that results in low or no emissions may shift the focus of such regulations and incentive programs away from EV technology. If new regulations and/or such tax credits and/or other incentives are negatively impacted, decreased, and/or discontinued, the growth of the EV market generally, including our software-defined P7 vehicles specifically (if and when they are manufactured), and REE’s business, prospects, financial condition and operating results could be materially and adversely affected.

REE may encounter obstacles outside of its control that slow the adoption of its technology in the market, including but not limited to regulatory requirements or infrastructure limitations.

While REE’s products are subject to substantial regulation under federal, state and local laws, REE believes that its products are in compliance with all current applicable laws. Continued compliance with these regulations could be burdensome, time consuming, and expensive. However, to the extent the laws change, new laws are introduced, or if REE introduces new products in the future, some or all of its products may not continue to comply with applicable international, federal, state or local laws, and require change.

REE’s products are subject to environmental and safety federal and state regulations, including regulations promulgated by the EPA, the National Highway Traffic and Safety Administration and various state agencies, and certification required for

Table of C ontents

each new model year in some cases. The risks, delays, and expenses incurred in connection with these compliance activities and with obtaining approval can be substantial.

In addition, REE’s P7 products involve a novel design and new technology, including locating critical vehicle components (steering, braking, suspension, powertrain and control) into the area between the chassis and the wheel and X-by-Wire control technology, which, excluding the U. S., may not meet existing safety standards or require modification in order to comply with various regulatory requirements. In particular, X-by-Wire technology in general has not received significant regulatory attention globally (excluding in the U. S.). More specifically, in 2023, we achieved EPA approval in the U. S. for our P7-C electric trucks. In January 2024,