Company: REE
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001628280-25-025661
Chunk: 46

Company: REE Automotive Ltd.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 46
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, even if our defense of these claims is ultimately successful. Our insurers may also discontinue our insurance coverage or be unable or unwilling to pay a claim. REE may also not be able to secure additional product liability insurance coverage on commercially acceptable terms or at reasonable costs when needed, particularly if it does face liability for its products and is forced to make a claim under its policy. A successful product liability claim against REE could require REE to pay a substantial monetary award, which could have a material impact on our financial condition, operations, and business and could result in our business needing to seek protection from our creditors, wind down, or restructure.

REE does not currently have extensive experience servicing its products. If REE is unable to address the service requirement of its potential customer and dealer base, its business may be materially adversely affected.

REE plans to work with strategic partners to provide predictive maintenance scheduling through smart service and maintenance artificial intelligence, or AI, in combination with over-the-air updates that seek to ensure maintenance is not performed on a standard schedule, but rather before a part will fail, which is expected to offer significant savings for unnecessary part replacements and drastically reduce downtime. There is no guarantee that REE will be successful in developing the necessary technology to actualize predictive maintenance scheduling. In addition, servicing of REE SDV technology products may primarily be carried out through third parties, including OEM appointed service centers. Although such third parties may have experience in servicing other products, they will initially have limited experience in servicing REE SDV products. There can be no assurance that REE will adequately address the service requirements of its potential customer and/or dealer base (if and when it manufacturers vehicles) to their satisfaction, or that REE and such third parties will have sufficient resources to meet these service requirements in a timely manner as the volume of products REE delivers increases. In addition, with respect to its vehicle products specifically, if and when manufactured, if REE is unable to roll out and establish a widespread service network that complies with applicable laws, user satisfaction could be

Table of C ontents

adversely affected, which in turn could materially and adversely affect REE’s reputation, sales, results of operations, and prospects.

REE may be subject to risks associated with autonomous driving and SDV technology, including but not limited to technical malfunctions, regulatory obstacles, and/or product liability.

REE’s products are being designed to be compatible with autonomous control. Autonomous driving technologies are subject to risks, including market acceptance, which depends upon many factors,