REE Automotive Ltd. Q1 FY2024 earnings call

• Commenced deliveries of world's first full by-wire, software-driven medium-duty demo trucks to major fleets like U-Haul and Penske.
• P7-C became the first full by-wire truck to achieve U.S. FMVSS certification, eligible for up to $100,000 per truck in customer incentives.
• Airbus selected REE vehicle to develop and validate fully autonomous driving.
• Started shipping demo trucks to dealers, with over 120 demo rides performed post-quarter end to generate follow-on orders.
• Three ways to electrify trucks: integrate REEcorner, purchase stripped chassis, or purchase full P7-C cab chassis.
• GAAP Q1 net loss narrowed to $25.2 million, non-GAAP net loss decreased, and free cash flow burn reduced.

No detailed segment-wise financial performance with absolute revenue and contribution % provided in the transcript.

• Aim to fulfill the $50 million order book according to production plan.
• Expect follow-on orders from fleets based on positive feedback from demo rides.
• R&D costs expected to decrease to $4-5 million per month, with potential cash from U.K. government.
• Anticipate revenue generation as scaling production begins with the order book.

• Forward-looking statements may not materialize due to factors beyond control like military conflict in Israel.
• Risks identified in Form 20-F related to business, prospects, and future results.

Q: Priorities for delivering units this year?

A: Want to fulfill order book and ramp up production based on orders from big fleets like Penske, U-Haul, etc.

Q: How are customers evaluating the products?

A: Different fleets have different criteria, but demo rides show positive feedback with customers finding the truck easy to drive like a medium-sized SUV.

Q: Details on Airbus agreement?

A: REE delivered the truck, and there's no additional R&D needed as the truck is fully capable and ready for the agreement.

Q: R&D for OEM partners?

A: By-wire tech is same for different applications, incremental OpEx limited, core margins highest with REEcorner sales.

Q: Color on tax provision?

A: Tax provision is a onetime noncash accounting provision due to U.K. R&D regulation.