Company: REE
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001628280-25-025661
Chunk: 18

Company: REE Automotive Ltd.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 18
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 risks associated with its international operations, including potentially unfavorable regulatory, political, tax and labor conditions, which could adversely affect its business, financial condition, and operating results. REE currently operates or has subsidiaries in Israel, the U. S., the UK, Germany, and Japan has been taking reservations for its products in the U. S. and Canada and has been marketing certain products to customers in certain EU countries, Japan, and India. These operations, subsidiaries, and/or sales are subject to the legal, political, regulatory and social requirements and economic conditions in these jurisdictions, as applicable. Additionally, as part of its growth strategy, REE intends to expand its manufacturing partnerships, assembly facilities and sales activity internationally to markets outside of North America. However, such expansion would require REE to make significant expenditures, which may include the hiring of local employees and establishing facilities, in advance of generating any revenue. REE is subject to a number of risks associated with international business activities that may increase its costs, impact its ability to sell its products and require significant management attention. These risks include:

• conforming REE’s products to various international regulatory, safety, emissions, certification and homologation requirements where its products are marketed or sold;

• challenges related to the development, construction and operation of current and future Integration Centers;

• difficulties related to maintenance and ability to produce REE’s products in REE’s UK Integration Center;

Table of C ontents

• difficulty in staffing and managing foreign operations;

• difficulties securing customers in new jurisdictions;

• exposure to foreign government taxes, regulations and permit requirements, including foreign taxes that REE may not be able to offset against taxes imposed upon it in Israel, and foreign tax and other laws limiting REE’s ability to repatriate funds to Israel;

• restrictions on the distribution of earnings, dividends, or capital from foreign jurisdictions to Israel;

• exposure to fluctuations in foreign currency exchange rates and interest rates, including risks related to any interest rate swap or other hedging activities REE may undertake;

• disruptions in global or regional supply chains and international shipping;

• exposure to tariffs, trade restrictions, duties, or other governmental measures, including those that may be imposed by Israel or other foreign governments, or in response to changing trade policies, such as U. S. tariffs on imports from specified countries;

• compliance with differing and potentially more stringent labor laws and employment regulations outside of Israel;

• changing diplomatic, trade, and geopolitical relationships that may adversely impact REE’s ability to operate or sell in certain markets;