Company: REE
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001628280-25-025661
Chunk: 38

Company: REE Automotive Ltd.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 38
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, including assumptions regarding market acceptance of SDV technology in general, and drive-by-wire in particular, and the manner in which this new and rapidly evolving market will develop. While we expect any such assumptions and the data underlying our estimates and forecasts to be reasonable, these assumptions and estimates may not be correct and the conditions supporting our assumptions or estimates may change at any time, thereby reducing the predictive accuracy of these underlying factors. As a result, our expected estimates and forecasts may prove to be incorrect. If third-party or internally generated data prove to be inaccurate or we make errors in our assumptions based on that data, the expected margins or addressable market, among other items, for our SDV products may be smaller than we estimate or fail entirely to come to fruition, our future growth opportunities and sales growth may be smaller than we may estimate and/or may never come to fruition, and our business, results of operations and financial condition would be significantly adversely affected.

Our future financial performance will depend on our ability to make timely investments in the correct market opportunities. If one or more of these markets experience a shift in customer or prospective customer demand, then our SDV products may not compete as effectively, if at all, and they may not be incorporated into vehicles. Given the evolving nature of the markets in which we operate, it is difficult to predict OEM or technology company demand for any of our SDV products or the future growth of the markets in which we operate. Even if the market for drive-by-wire grows substantially, there is no guarantee that demand for our SDV products will correlate with that growth, including if we fail to effectively pursue such opportunities. There is also no guarantee that our business will be successful simply because of what we will estimate to be the expected market for our SDV products. If demand does not develop or if we cannot accurately forecast customer

Table of C ontents

demand, then the size of our markets, inventory requirements or our future business, results of operations, and financial condition would be adversely affected and our business would likely fail.

Risks Related to REE’s Suppliers

With respect to manufacturing, REE depends on its suppliers, including but not limited to body manufacturers and battery providers, some of which are single or limited source suppliers, and if such suppliers fail to deliver the components of REE’s products in a timely manner or at all and at prices and in volumes acceptable to it, it could have a material adverse effect on its business, prospects and operating results.

With respect to manufacturing, REE relies on