REE Automotive Ltd. Q3 FY2023 earnings call

• Strong Q3 performance with strong market demand for P7, expanding authorized dealer network to 20 partners and order book value to $43M in last 3 months. • Customer demo trucks in advanced build stages, on track for FMVSS and CARB certifications, expecting to ship first demo units by Christmas. • Built strong customer experience team. Secured $8M capital raise. Decreased GAAP net loss by 28% through R&D/SG&A efficiencies and government grants. • Plan to have production tooling operational by end 2024, nominating US contract manufacturer to assemble P7 lineup, aiming to scale production to 4-6 trucks/day by end 2024 with max capacity 5,000 trucks/year. • Support for Israel team, with teams in UK and US assisting, and gratitude for support received.

• Need $20M additional funding over next year to ramp up production. • Target breakeven on gross margin with low hundreds of vehicles in 2025. • Aim for positive EBITDA in low thousands over next few years, targeting EBITDA breakeven by end of 2025. • Plan to have production tooling in place by end 2024 to reach bill of materials breakeven on first scale production batch.

• Ongoing military conflict in Israel could affect operations (though not expected to have material impact). • Risks associated with forward-looking statements, as actual results may differ.

Q: Mike Shlisky asked about contract manufacturing details, asking if contract manufacturer does whole assembly or just corners.

A: Daniel Barel responded that core REE technology is by-wire corners, remaining with REE, and contract manufacturer assembles full truck in US, with corners shipped from UK integration center.

Q: Colin Langan asked about grant size, sustainability, $20M funding needs.

A: Yaron Zaltsman said grants continue into next year, not a meaningful amount, need $20M for 2024 plan to ramp up, can't hit capacity ramp without it.

Q: Jeff Osborne asked about FMVSS/CARB timing, CM nomination, $20M funding, charging readiness.

A: Daniel Barel and Josh Tech responded on timing for certifications, near final stages of nominating CM, $20M for tooling, and that dealers/customers are prepared with charging readiness.

Q: Andres Sheppard asked about aerospace program details and road map.

A: Daniel Barel said aerospace program is autonomous, testing successful, and confirmed on track with 2-phase road map, targeting breakeven and EBITDA breakeven as previously stated.