REE Automotive Ltd. Q1 FY2023 earnings call

• 2023 started well with participation in events like Work Truck Week and ACT Expo, interacting with fleets and dealers. • Completed winter testing in Sweden; focus on certification by second half of 2023 and initial pilot vehicle delivery by end of 2023. • 2-phase production plan: Phase 1 (2024) anticipates pilot production in low hundreds, targeting breakeven gross margin by end 2024; Phase 2 (2025) targets production in low to mid-thousands, targeting breakeven EBITDA by end 2025. • Introduced P7-C chassis cab, part of P7 program for Class 3 to 5 zero-emission vehicles. • Ended Q1 with $126 million liquidity; expect $65 million by end of 2023; need $80 million to $100 million for production ramp-up due to working capital requirements.

• Expect to end 2023 with $65 million liquidity. • Need $80 million to $100 million for production ramp-up to low to mid-thousands of vehicles. • Will explore options of raising debt or equity in line with business progress.

• Uncertainty in achieving certification and production targets. • Dependence on regulatory changes like the California Advanced Clean Fleet regulation. • Potential supply chain issues, such as impact from Microvast's DOE loan pull.

Q: About potentially sharing more capital for production and orders, A: Yaron Zaltsman states they will explore equity or debt based on the progress of the business cycle.

Q: Regarding product readiness after winter testing, A: Joshua Tech says they are working on homologation vehicles for Q3 to complete certification by end of 2023.

Q: Concern about cash burn and capital needs, A: Yaron Zaltsman explains the $20 million per quarter burn and the need for working capital for the ramp-up.

Q: On order book and dealers, A: Tali Miller mentions existing customers have significant potential and the growing dealer network.

Q: About Phase 1/2 production and Austin progress, A: Joshua Tech says focusing on Coventry for 2024 deliveries and will build US capacity in 2024.

Q: Impact of Microvast loan pull, A: Daniel Barel says there is no immediate risk to the supply chain at this point