Company: REE
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001628280-25-025661
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Company: REE Automotive Ltd.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
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Item 3. Key Information

A. [Reserved]

B. Capitalization and indebtedness.

Not applicable.

C. Reasons for the oﬀer and use of proceeds.

Not applicable.

D. Risk factors

You should carefully consider the risks described below, together with all of the other information in this Annual Report on Form 20-F. The risks and uncertainties described below are those significant risk factors, currently known and specific to us, that we believe are relevant to an investment in our securities. Additional risks and uncertainties not currently known to us or that we now deem immaterial may also harm us. If any of these risks materialize, our business, results of operations or financial condition could suffer, and the price of our Ordinary Shares could decline substantially.

Summary Risk Factors

Investing in our Class A ordinary shares, no par value per share, having one vote per share, or Class A Ordinary Shares, involves a high degree of risk, as fully described below. The principal factors and uncertainties that make investing in our Class A Ordinary Shares risky, include, among others:

• REE is an early stage company with a history of losses, and expects to incur significant expenses and continuing losses for the foreseeable future, and there is substantial doubt that we will have sufficient funds to satisfy our obligations for the foreseeable future and through the next 12 months from the date of this Annual Report if we are unable to obtain sufficient additional funding or do not have access to capital to finance our current business plan.

• Servicing our Convertible Notes may require a significant amount of cash, and we may not have sufficient cash flow from our business to pay our substantial debt. Additionally, we may not have the funds necessary to settle conversions of our convertible notes in cash or to repurchase the notes upon a change in control transaction, and our future debt may contain limitations on our ability to pay cash upon conversion or repurchase of the notes.

• REE’s limited operating history may make evaluation of its business and future prospects difficult, increasing the risk of investment in REE. Its business model has not been proven, and any failure to obtain significant orders for its products would have an adverse effect on its operating results, business, or reputation, resulting in substantial liabilities that may exceed its resources.

• Projections of REE’s operational or financial performance relies in large part on inherently uncertain assumptions that may not materialize, which could cause actual results to differ significantly. We also operate in an industry that is new and rapidly evolving, and our estimates are subject to significant