TEL AVIV - REE Automotive Ltd. (NASDAQ: REE), a company specializing in electric vehicle technology, announced the expansion of its authorized dealer network, now encompassing 66 sales and service locations throughout the United States and Canada. This growth comes as the company's order book value exceeds $50 million.
The expansion includes the addition of new dealerships such as Macnab EV Sales Corp. and Kaizen Automotive Group in Canada, and Pacific Mobility Group in Washington, U.S. These dealers have already placed orders for REE's P7-C electric chassis cabs. The P7-C is part of REE's electric truck offerings, designed with by-wire technology that integrates steering, braking, suspension, powertrain, and control into a single module.
Tali Miller, REE Automotive's Chief Business Officer, highlighted the significance of the expansion, stating that the company's vehicles have now received FMVSS, CARB, and EPA certifications. This allows REE to deliver its electric trucks to fleet customers across North America, catering to various use cases and electrification needs.
The company has also partnered with Hackney, a North American body builder, to provide customized solutions that can be integrated with the P7-C chassis cab. This collaboration aims to reduce design time while offering customization options for fleet clients.
REE Automotive's dealer network growth in North America is timely as the company's vehicles are eligible for federal and provincial incentives in Canada, such as the iMHZEV and Go Electric programs, which can total up to $150,000 CDN. In the U.S., federal IRA incentives are available, with expectations for Washington to introduce a state incentive program in the future.
The company's patented technology, including the REEcorner, is touted to offer a unique value proposition in the e-mobility market. These modular platforms allow for the construction of electric vehicles in various sizes and configurations, potentially reducing the time to market for fleets transitioning to electrification.
This news is based on a press release statement from REE Automotive.
InvestingPro Insights
As REE Automotive Ltd. (NASDAQ: REE) expands its footprint in the North American market, the company's financial metrics provide insights into its investment potential. With a market capitalization of $67.87 million USD, REE's valuation reflects its positioning in the niche electric vehicle technology sector. The company's Price to Earnings (P/E) ratio stands at -0.64 when adjusted for the last twelve months as of Q3 2023, indicating that investors are currently facing losses. This is further echoed by a Price to Book (P/B) ratio of 0.62, suggesting that the company's stock is trading at a discount to the value of its assets for the same period.
Despite the negative gross profit margin of -104.42% for the last twelve months ending Q3 2023, which shows that the company is selling its products at a loss, REE's stock has experienced a 6-month price total return of 39.09%. This could signal that investors are optimistic about the company's future prospects. Additionally, the fair value estimates for REE's stock are $11 USD according to analyst targets and $7.97 USD from InvestingPro, which may indicate potential for growth from its previous close price of $5.88 USD.
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