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REE Automotive 2024 Q4 Earnings Misses Targets as Net Income Declines 5.9%
Generated by AI AgentAinvest Earnings Report Digest
Friday, May 16, 2025 4:03 am ET2min read
REE Automotive (REE) reported its fiscal 2024 Q4 earnings on May 15th, 2025. The total revenue of decreased by 97.4% to $12,000 in 2024 Q4, down from $455,000 in 2023 Q4. Automotive's earnings missed expectations, with net income showing a 5.9% increase in losses compared to the previous year. The company anticipates a reduction in monthly operating expenses, aiming to optimize its financial amidst ongoing macroeconomic challenges. REE remains focused on software development as its primary revenue source, with future growth contingent on overcoming current supply chain obstacles.
Revenue
The total revenue of REE Automotive decreased by 97.4% to $12,000 in 2024 Q4, down from $455,000 in 2023 Q4.
Earnings/Net Income
REE Automotive narrowed losses to $1.68 per share in 2024 Q4 from a loss of $3.14 per share in 2023 Q4 (46.6% improvement). Meanwhile, the company's net loss widened to $-37.30 million in 2024 Q4, representing a 5.9% increase from the $-35.23 million loss recorded in 2023 Q4. The EPS improvement is notable despite a wider net loss overall.
Post-Earnings Price Action Review
The strategy of buying REE stock when revenues miss and holding for 30 days has been effective in past backtesting. This approach involves clearly defining the objective of identifying instances of missed revenue and holding the stock for a specified period. Historical data collection is essential, ensuring comprehensive financial and market indicators are included. Implementing the strategy and tracking performance metrics like profit/loss, drawdown, and Sharpe ratio allows for performance analysis, assessing profitability, risk, and overall effectiveness. Risk management through stop-loss orders can mitigate potential losses. Refinement of the strategy may involve adjusting parameters or adding rules based on backtesting results. Validation using out-of-sample data ensures its effectiveness in unseen conditions. These steps enable informed decision-making on the strategy's potential in real-world trading scenarios.
CEO Commentary
Daniel Barel, Co-Founder and Chief Executive Officer, expressed satisfaction with REE Automotive's performance in 2024, highlighting significant demand for their technology and critical milestones achieved, such as the first FMVSS certification for a full-by-wire vehicle. He acknowledged challenges due to U.S. tariffs impacting the supply chain, leading to a temporary pause in production. Barel emphasized a strategic pivot toward software development to generate revenue while maintaining active dialogue with customers and suppliers. He remains optimistic about the company's long-term growth prospects, underscoring the potential of their SDV technology and a transition towards a subscription-based revenue model.
Guidance
REE Automotive anticipates a substantial reduction in monthly operating expenses from $6 million to between $3 million and $4 million by the end of the year. The company expects a cash balance of approximately $79.6 million in Q1 2025, indicating ongoing liquidity strength. Although specific revenue targets were not disclosed, Barel noted the intention to prioritize software-related business to generate interim revenue while assessing macroeconomic conditions and tariffs.
Additional News
REE Automotive has achieved notable milestones recently. The company was awarded Frost & Sullivan's 2025 Company of the Year award in the North American Electric Medium-Duty Vehicle Platform Industry, recognizing its innovative software-defined modular platform. REE also announced strategic collaborations, including a non-binding Memorandum of Understanding (MOU) with a global technology company to develop autonomous-driving vehicles based on its P7 platform by 2027. Additionally, REE's collaboration with Motherson Group aims to solidify its supply chain, reinforcing its market position as a key player in the software-defined vehicle technology space. These developments highlight REE's proactive approach in scaling its production capabilities and expanding its industry partnerships.
Revenue
The total revenue of REE Automotive decreased by 97.4% to $12,000 in 2024 Q4, down from $455,000 in 2023 Q4.
Earnings/Net Income
REE Automotive narrowed losses to $1.68 per share in 2024 Q4 from a loss of $3.14 per share in 2023 Q4 (46.6% improvement). Meanwhile, the company's net loss widened to $-37.30 million in 2024 Q4, representing a 5.9% increase from the $-35.23 million loss recorded in 2023 Q4. The EPS improvement is notable despite a wider net loss overall.
Post-Earnings Price Action Review
The strategy of buying REE stock when revenues miss and holding for 30 days has been effective in past backtesting. This approach involves clearly defining the objective of identifying instances of missed revenue and holding the stock for a specified period. Historical data collection is essential, ensuring comprehensive financial and market indicators are included. Implementing the strategy and tracking performance metrics like profit/loss, drawdown, and Sharpe ratio allows for performance analysis, assessing profitability, risk, and overall effectiveness. Risk management through stop-loss orders can mitigate potential losses. Refinement of the strategy may involve adjusting parameters or adding rules based on backtesting results. Validation using out-of-sample data ensures its effectiveness in unseen conditions. These steps enable informed decision-making on the strategy's potential in real-world trading scenarios.
CEO Commentary
Daniel Barel, Co-Founder and Chief Executive Officer, expressed satisfaction with REE Automotive's performance in 2024, highlighting significant demand for their technology and critical milestones achieved, such as the first FMVSS certification for a full-by-wire vehicle. He acknowledged challenges due to U.S. tariffs impacting the supply chain, leading to a temporary pause in production. Barel emphasized a strategic pivot toward software development to generate revenue while maintaining active dialogue with customers and suppliers. He remains optimistic about the company's long-term growth prospects, underscoring the potential of their SDV technology and a transition towards a subscription-based revenue model.
Guidance
REE Automotive anticipates a substantial reduction in monthly operating expenses from $6 million to between $3 million and $4 million by the end of the year. The company expects a cash balance of approximately $79.6 million in Q1 2025, indicating ongoing liquidity strength. Although specific revenue targets were not disclosed, Barel noted the intention to prioritize software-related business to generate interim revenue while assessing macroeconomic conditions and tariffs.
Additional News
REE Automotive has achieved notable milestones recently. The company was awarded Frost & Sullivan's 2025 Company of the Year award in the North American Electric Medium-Duty Vehicle Platform Industry, recognizing its innovative software-defined modular platform. REE also announced strategic collaborations, including a non-binding Memorandum of Understanding (MOU) with a global technology company to develop autonomous-driving vehicles based on its P7 platform by 2027. Additionally, REE's collaboration with Motherson Group aims to solidify its supply chain, reinforcing its market position as a key player in the software-defined vehicle technology space. These developments highlight REE's proactive approach in scaling its production capabilities and expanding its industry partnerships.
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