Tuesday, December 7, 2021

REE Automotive releases earnings, Stock down 7% after the announcement

REE Automotove reported their earnings for the last quarter today and the Stock sold off about 7% after the announcement. One reason could be the low amount of Cash at Quarter end. Its possible that the Israeli Startup will have to do another Capital Raise at one point in time.

Financial Highlights from the Earnings Release:

  • GAAP net loss of $414.9 million in the third quarter of 2021, compared to a net loss of $18.8 million in the third quarter of 2020. The year over year change was primarily related to higher non-cash share-based compensation expenses of $409.8 million, compared with $14.4 million in the third quarter of 2020. As previously disclosed in the Company’s 20-F filing, the increase resulted mainly from performance-based options which were granted to founders prior to the merger with 10X Capital and were vested at the time of closing. This was partially offset by income from warrant revaluation in the amount of $17.3 million
  • Non-GAAP net loss of $19.5 million in the third quarter of 2021, compared to $4.4 million in the third quarter of 2020, driven mainly by higher R&D and engineering expenses as the company ramps up its capabilities towards achieving commercial production in 2023
  • The Company had approximately $294.5 million in cash at quarter end, which is sufficient to execute on its business plan
REE Automotive Stock after the earnings announcement

Investors in REE don’t have a great year so far.

REE Automotive Stock YTD performance

On the positive REE unveiled a new autonomous EV Platform Concept during the Earnings Release.

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Leannehttps://wegoelectric.net
Hi I'm Leanne. I'm a big fan of electric cars (drive a Model 3 myself) and support the movement to go electric! I hope you enjoy my Articles here on the website.
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