Company: REE
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001628280-25-025661
Chunk: 31

Company: REE Automotive Ltd.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 31
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 Development and Production of REE’s Products

REE’s products are in various stages of development and there are risks associated with developing such products into marketable products.

REE’s products are in various stages development. In order to reach the delivery stage REE’s products remain subject to further design, validation, verification and testing, as well as product homologation. There is no guarantee that REE will be successful in reaching the delivery stage on the projected timeline, or at all. The establishment of the UK Engineering Center alongside REE’s first UK Integration Center at our Coventry, UK campus coupled with the continued partnership at the MIRA Technology Park has provided REE with a proving ground for physical testing and validation of REE products. However, there can be no guarantee that the testing of REE’s products will proceed according to schedule or that the REE products will withstand rigorous additional testing. The development of REE’s products is and may be subject to risks including, but not limited to, risks associated with:

• REE’s ability to complete the final product design process on time, if at all;

• the ability for REE’s products to withstand rigorous testing and validation, including as set by external assessors over time;

• the ability of REE’s products to meet existing or future automotive industry standards; and

• the ability of X-by-Wire Control technology to achieve widespread market acceptance.

REE is subject to risks associated with the anticipated timing of REE’s initial commercial production and subsequent increased commercial production.

REE expects to delay the production of its vehicles. This will likely create instability in our supply chain, including delays to and from suppliers, contract termination or threats thereof, prolonged litigation in connection thereto, while potentially creating a backlog of parts, components, and already assembled vehicles that need to be stored at our cost for an unknown period of time. It may likewise cause our customers, strategic partners, or other third parties to decrease the amount of business they do with us or terminate their relationship with us, including from Authorized Dealers that have already placed initial orders for our P7 products. Such delay may further cause potential customers, including OEMs, to reconsider entering into agreements with us, including where they believe that we may no longer be a reliable partner or financial sound partner. Any of the foregoing could materially and adversely harm REE’s business, financial condition and results of operations, including by adversely affecting our ability to implement our business plan, which could cause us to discontinue our operations, restructure, and/or seek protection from creditors