REE Automotive Ltd. Q3 FY2024 earnings call

Market Demand - Demand for REE's products and technology from fleets and OEMs is accelerating, with P7 truck reservations up 230% Q-o-Q to $137 million from 30 customers.

Production Milestones - Commenced production of the flagship P7 truck, with first production trucks set to be delivered to North American customers in the first half of 2025. Collaborating with Motherson and Roush for production ramp and supply chain management.

Supply Chain - Motherson is supporting production supply chain management, producing key commodities like fluid transfer hoses, wire harnesses, and plastics, and working on improving supplier payment terms to optimize working capital.

Service Network - Has 80 sales and service points in North America for P7 customers, with plans to expand public charging locations and train fleets for maintenance.

In Q3 2024, GAAP net loss was $38.5 million, compared to $10.8 million in Q2 2024 and $24.1 million in Q3 2023. Non-GAAP net loss in Q3 was $16.8 million compared to $12.4 million in Q2 2024. Reservations for REE's P7 trucks increased by 230% quarter-over-quarter, reaching $137 million, representing more than 900 P7 EVs from 30 different customers across North America, contributing over 90% to revenue from product segments.

- Plans to deliver first production trucks to North American customers in the first half of 2025.

- Target to reach bill-of-materials breakeven in the second half of 2025 with production of a few 100 vehicles.

- Forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from projected. Risks include those discussed in the risk factor section and elsewhere in REE’s annual report or Form 20-F filed with the SEC.

Q: Could you talk about incremental orders and new customers in the reservation book?

A: There are 30 different customers, including known industry leaders and large fleets, with more reservations expected as we move forward.

Q: Can you provide more on Motherson's contribution to supply chain optimization and bill-of-materials break-even?

A: Motherson is overseeing 50% of the supply chain, producing key commodities in their core competencies and working on payment terms to optimize working capital.

Q: What about the service network in the US?

A: There are 80 sales and service points in North America, and the network is set up to support vehicle service and sales.