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

Company: REE Automotive Ltd.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 15
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3 we undertook a targeted reduction in headcount of approximately 11% of the Company’s workforce. Additionally, in 2024, we sought to more closely align our employee headcount with our business plan, resulting in an approximately 16% reduction over the course of the year. REE expects to take additional steps to lower its expenses, including additional reductions in force over the next several months. Reductions in force, in particular, may yield unintended consequences and costs, including additional attrition beyond the amount of force reduction, distraction to our employees, reduced employee morale and adverse effects on our reputation as an employer. Such reductions in force may also make it more difficult for us to hire new employees in the future and may limit the anticipated benefits from the reduction in force. Additionally, if we are unsuccessful in generating orders for our products or are unable to raise additional capital, we may need to further reduce our expenses.

If the market for SDVs does not develop as REE expects or develops slower than REE expects, its business prospects, financial condition, and operating results may be adversely affected.

REE’s growth depends upon the adoption of SDVs by OEMs, delivery and logistic fleets, dealers, e-commerce retailers, new mobility players, MaaS, providers and autonomous drive companies, its ability to sell products that meet their needs and, if and when REE resumes manufacturing, on REE’s ability to produce and assemble its vehicles. The entry of SDV products into the market is a relatively new development and is characterized by rapidly changing technologies and evolving government regulation, industry standards and customer views of the merits of using SDVs in their businesses. As part of REE’s sales efforts, REE must demonstrate to OEMs, delivery and logistic fleets, dealers, e-commerce retailers, new mobility players, MaaS providers and autonomous drive companies the savings during the life of the vehicle and, if and when REE resumes manufacturing, the lower total cost of ownership, or TCO, of vehicles built on the REE’s technology.

With respect to its vehicles, if and when we resume manufacturing, REE believes that OEMs, delivery and logistic fleets, dealers, e-commerce retailers, new mobility players, MaaS providers and autonomous drive companies consider many factors when deciding whether to purchase REE’s products (or EVs generally) over vehicles powered by internal combustion engines, particularly diesel-fueled or natural gas-fueled vehicles. REE believes these factors include:

• the difference in the initial purchase prices of EVs with comparable vehicles