Company: REE
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001628280-25-025661
Chunk: 10

Company: REE Automotive Ltd.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 10
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 sufficient to cover all future claims against REE. A loss that is not covered by insurance and/or exceeds policy limits may require REE to pay substantial amounts, which could adversely affect REE’s financial condition and operating results. Further, insurance coverage may not continue to be available to us, or, if available, may be at a significantly higher cost, based on insurance market conditions, our specific industry, and/or a change in our risk profile.

The successful assertion of one or more large claims against REE that exceeds its available insurance coverage, or results in changes to its insurance policies (including premium increases or the imposition of large deductible or co-insurance requirements), could have an adverse effect on its business. In addition, REE cannot be sure that its existing insurance coverage will continue to be available on acceptable terms or that REE’s insurers will not deny coverage for future claims.

Risks Related to REE’s Business

REE’s limited operating history may make evaluation of its business and future prospects difficult, increasing the risk of investment in REE.

REE faces risks and challenges as an early stage company with a limited operating history. REE has a limited operating history in the automotive technology industry on which investors can base an evaluation of its business, operating results and prospects. Since REE is in the early stages of commercializing its SDV technological products, it is difficult to predict REE’s future revenues, if any, and expenses, and REE has limited insight into trends that may emerge and affect its business. There is no assurance that customers and potential customers will purchase REE’s products in volumes sufficient to achieve profitability. Market conditions, many of which are beyond REE’s control and subject to change could impact demand for REE’s products and ultimately REE’s success. These include general economic conditions, the availability and terms of financing, civil discourse throughout the globe, effects and impact of climate change and global warming, regulatory requirements and incentives, competition and the pace and extent of vehicle electrification. Therefore, there can be no assurance at this time that REE will be able to implement its business plan, generate revenues, operate profitably or

Table of C ontents

will have adequate working capital to meet its obligations (i) as they become due, (ii) upon the occurrence of an acceleration of our obligations to repay indebtedness even if we make all principal and interest payments when due if we breach certain covenants or warranties, or (iii) upon the early termination of any agreement with a supplier or strategic partner. Any