Analyze ticker REE


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The deep research logic is organized as follows:
Okay, let's tackle this analysis of REE Automotive. The user is interested in stocks like OGCP, PTL, RKDA, TMC, and LE, which are in Rare Metal, China, and Photovoltaic industries. They also clicked on CHRO, CLIK, NRXP, and OST, which might indicate a preference for tech or growth stocks. Their recent questions about TCRT and Bitcoin's discount timing suggest they're into technical analysis and short-term strategies.
First, I need to look at the provided references. REE's closing price is $2.44, with resistance at $2.97 and support at $2.35 (Ref 1). The technical indicators like MACD at 0.25, RSI of 28.55 (below 30, indicating oversold), and KDJ of 22.87 (also oversold) (Ref 2) suggest the stock might be undervalued. The moving averages (MA5: $2.66, MA10: $2.63, MA20: $2.99) show the current price is below these averages, which could be a bearish signal but also a potential buying opportunity if the price rebounds (Ref 3). The Fibonacci retracement levels at $5.9 (0.382) and $8.13 (0.618) (Refs 4,5) indicate potential resistance levels if the stock recovers.
Looking at recent news, Alliance Global Partners initiated a Buy rating with a $8.50 target (Ref 6), and other analysts have an average target of $14.75 (Ref 7,27), implying significant upside. REE secured $27M and $36.4M in funding (Refs 8,10), which strengthens their liquidity. They have a MoU expected to generate $770M in revenue (Ref 7), and their Q3 2024 results showed a 230% surge in reservations (Ref 12,13). However, their revenue is still low ($11K in Q4 2024, Ref 15), and they have a net loss of $38.49M (Ref 15), which is concerning.
Financial health: The debt-to-equity ratio is 0.43 (Ref 20), which is manageable. The interest coverage ratio isn't provided, but their liquidity improved to $88.8M in Q3 2024 (Ref 12). R&D expenditure is high at $12.39M (Ref 30), which is a positive sign for innovation but a risk if not converted into revenue.
Competitive analysis (Ref 29) shows REE's stock is much cheaper than peers like Luminar ($3.33), Magna ($32.15), and Aptiv ($50.71), which could be a red flag or a growth opportunity. The user's interest in technical analysis means highlighting the stock's undervaluation relative to peers is important.
Institutional ownership is around 12.74% (Ref 17,35), with M&G and Motherson being significant investors (Refs 8,33). The recent Frost & Sullivan award (Ref 22,27,28) adds credibility.
Considering the user's focus on short-term strategies, the stock's current price of $2.44 vs. the $14.75 average target (Ref 7,27) suggests a potential 433% upside, which aligns with their interest in high-growth stocks. However, the stock's volatility (Beta of 3.01, Ref 17) and recent downgrades (Ref 18) need to be addressed as risks.
The user's interest in China isn't directly tied to REE, but their partnerships with global companies like Motherson and Roush (Refs 8,33) could indicate expansion into other markets. The photovoltaic angle isn't present here, but REE's focus on electric vehicles (EVs) ties into the broader green energy trend, which might appeal to the user.
In conclusion, REE presents a high-risk, high-reward scenario. The technical indicators suggest undervaluation, strong institutional backing, and upcoming catalysts like production starts and the MoU. However, financial losses and competition are significant risks. The user's preference for technical analysis and short-term gains makes REE a candidate for a speculative play, but caution is advised due to the stock's volatility and unproven financials.
REE Automotive (REE): High-Risk, High-Reward Opportunity with Critical Technical and Fundamental Catalysts
REE Automotive operates at the intersection of electric vehicle (EV) innovation and modular manufacturing, presenting a compelling but volatile opportunity. Below is a structured analysis tailored to your focus on technical indicators, growth potential, and short-term catalysts:
1. Technical Analysis: Undervalued with Critical Resistance/Support Levels
- Current Price: $2.44 (as of April 16, 2025) 1.
- Key Levels:
- Resistance: $2.97 (immediate), $5.9 (0.382 Fibonacci retracement), $8.13 (0.618 Fibonacci retracement) 12.
- Support: $2.35 (immediate), $2.44 (current price aligns with Q4 2024 closing price) 14.
- Indicators:
- RSI: 28.55 (oversold, potential rebound) 5.
- KDJ: 22.87 (deep oversold, aligning with RSI) 5.
- MACD: 0.25 (positive crossover possible if price breaks above $2.66) 5.
- Moving Averages: Price trades below MA5 ($2.66), MA10 ($2.63), and MA20 ($2.99), indicating a bearish short-term trend but potential "buy the dip" opportunity 6.
1/3
REE Trend
2. Fundamental Catalysts: Institutional Backing and Revenue Growth
- Funding Strength:
- Secured $63.4M in direct offerings (March 2025) to fuel production and R&D 78.
- Strategic investors include Motherson Group (19% ownership) and M&G Investments (16% ownership) 910.
- Revenue Momentum:
- Reservation surge: +230% YoY to $137M (Q3 2024), with orders extending beyond 2025 1112.
- MoU potential: $770M in revenue over 5 years (autonomous vehicle partnership expected Q4 2025) 1314.
- Financial Health:
- Liquidity: $88.8M (Q3 2024), up 47% YoY 11.
- Loss narrowing: Net loss of -$38.49M (Q4 2024), down 15% YoY 4.
- Debt-to-equity: 0.43 (manageable), with no significant interest expenses reported 15.
3. Competitive Positioning: Undervalued vs. Peers
- Stock Price: $2.44 (April 16, 2025) vs. peers like Luminar ($3.33), Magna ($32.15), and Aptiv ($50.71) 16.
- Valuation: Trades at a -0.65 P/E ratio (TTM), reflecting high-risk but unproven profitability 17.
- Technology Edge: Proprietary REEcorner (integrated steering/braking/suspension) and software-defined vehicles (SDV) architecture, which Frost & Sullivan awarded as "2025 Company of the Year" 1819.
4. Institutional Sentiment and Risks
- Consensus: Outperform (3 analysts), with a $14.75 average target (+433% upside) 2113.
- Risks:
- Revenue volatility: Total revenue of $11K (Q4 2024), down 94.8% YoY 224.
- Execution risk: Production ramp-up (H2 2025) and BoM breakeven targets require flawless execution 1112.
- Market sentiment: Recent downgrades (e.g., Morgan Stanley) highlight skepticism about EV sector overcrowding 23.
5. Alignment with User Preferences
- Technical Focus: REE’s oversold RSI/KDJ and proximity to key resistance levels ($2.97) align with your interest in short-term technical plays.
- Growth Potential: Institutional backing ($63.4M funding) and $770M MoU revenue align with your preference for high-growth stocks like OGCP/PTL.
- Risk Tolerance: The stock’s Beta of 3.01 (high volatility) and 433% upside potential cater to your short-term, high-risk appetite 23.
Conclusion: Speculative Buy with Cautious Triggers
REE is a high-risk, high-reward play suitable for investors comfortable with volatility. The stock’s undervaluation relative to peers, institutional confidence, and upcoming production milestones (H1 202
Source:
1.
REE Closing Price, Resistance Level, Support Level
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