Company: REE
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001628280-25-025661
Chunk: 69

Company: REE Automotive Ltd.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 69
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 be compromised or misappropriated and its reputation may be adversely affected. If these systems do not operate as REE expects them to, REE may be required to expend significant resources to make corrections or find alternative sources for performing these functions. Any of the foregoing could have a material adverse effect on our business, financial condition, results of operations, or prospects.

Table of C ontents

Any unauthorized control or manipulation of the information technology systems in REE’s products could result in loss of confidence in REE and its products and harm REE’s business.

REE’s X-By-Wire technology contains complex information technology systems. Such technology controls each of the various functions in our products including steering, braking, suspension, powertrain and control. REE’s hardware and software products are also outfitted with built-in data connectivity capabilities to accept and install periodic remote updates from REE, when made available, to improve or update the functionality of its products. REE has designed, implemented and tested security measures intended to prevent cybersecurity breaches or unauthorized access to its information technology networks, its technology products and their systems, and intends to implement additional security measures as necessary. However, hackers or other types of criminals may attempt to physically or through online means gain unauthorized access to such products or systems to modify, alter and use such networks, products and systems to gain control of, or to change, REE’s products’ functionality, user interface and performance characteristics, or to gain access to data stored in or generated by the products. In addition, as we plan to transition to offering product-related data, including increased vehicle connectivity and over-the-air updates, our products may increasingly be subject to cyber threats. Hackers may attempt to infiltrate, steal, corrupt, or manipulate the data that we store on our AWS cloud, which could also result in our in-vehicle systems malfunctioning when connected to such cloud or the loss of control by a driver of a vehicle in favor of such hacker and his/its commands. In particular, REE’s systems affect the control of various vehicle functions including engine, transmission, safety, steering, navigation, acceleration, and braking. We have designed, implemented, and tested security measures intended to prevent unauthorized access to these systems. However, hackers may attempt in the future to gain unauthorized access to modify, alter, and use such systems to gain control of, or to change, the functionality, user interface and performance characteristics of vehicles incorporating our technology, or to gain access to data stored in or generated by the vehicle. In addition, as