Company: REE
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001628280-25-025661
Chunk: 16

Company: REE Automotive Ltd.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 16
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 powered by internal combustion engines, both including and excluding the effect of government and other subsidies and incentives designed to promote the purchase of EVs;

• the TCO of the vehicle over its expected life, which includes the initial purchase price and ongoing operating and maintenance costs;

• the availability and terms of financing options for purchases of vehicles and, for EVs, financing options for battery or fuel cell systems;

• the availability of tax and other governmental incentives to purchase and operate EVs and future regulations requiring increased use of nonpolluting vehicles;

• government regulations and economic incentives promoting fuel efficiency and alternate forms of energy;

• fuel prices, including volatility in the cost of diesel or a prolonged period of low gasoline and natural gas costs that could decrease incentives to transition to EVs;

• the cost and availability of other alternatives to diesel fueled vehicles, such as vehicles powered by natural gas;

• corporate sustainability initiatives;

• EV quality, performance and safety (particularly with respect to lithium-ion battery packs or fuel cells);

• the quality and availability of service for the vehicle, including the availability of replacement parts;

• the limited range over which EVs may be driven on a single charge;

• increased competition with other companies also developing zero-emission electric and autonomous vehicles;

• access to charging stations and related infrastructure costs, and standardization of EV charging systems;

• electric grid capacity and reliability; and

• macroeconomic factors.

If, in weighing these factors, OEMs, delivery and logistic fleets, dealers, new mobility players, MaaS providers and autonomous drive companies determine that there is not a compelling business justification for purchasing EVs, particularly those built on products by REE, then the market for EVs may not develop as REE expects or may develop

Table of C ontents

more slowly than REE expects, which would adversely affect REE’s business, prospects, financial condition and operating results.

In addition, the reduction, elimination or selective application of tax and other governmental incentives and subsidies resulting from policy changes (including any related impacts from actions by the Trump Administration with respect to EV), or the reduced need for such subsidies and incentives due to the perceived success of the EV, fiscal tightening or other reasons may result in the diminished competitiveness of the EV industry generally or EVs built on the REE products in particular, which could in turn adversely affect REE’s business, prospects, financial condition and operating results.

Further, REE cannot assure that the current governmental incentives and subsidies available for purchasers of EVs will remain available. More specifically, recent executive orders