REE Automotive has pivoted from capital-intensive vehicle production to a technology-first model, converting a previously announced MOU into a binding agreement valued at up to $107 million over two years with a leading mobility technology company. Under this agreement, REE will design and build multiple prototypes of an autonomous public transport shuttle leveraging its Zonal Architecture SDV platform and proprietary REEcorner™ modules, with serial production subject to a separate supply contract upon satisfaction of closing conditions. Additionally, REE signed an MOU with Mitsubishi Fuso Truck and Bus Corporation to evaluate integration of its software-defined vehicle (SDV) and x-by-wire technologies into commercial vehicles, targeting post-2030 market entry, and entered into a memorandum with BorgWarner’s Cascadia Motion to co-develop next-generation electric drive units (EDUs) under a royalty-bearing framework.

For the six months ended June 30, 2025, REE reduced its GAAP net loss by 33% year-over-year to $24.3 million, driven largely by non-cash gains from warrant and derivative remeasurements, partially offset by inventory write-downs and asset impairment charges. However, non-GAAP net loss widened by 8% to $36.5 million, reflecting the absence of prior-year UK R&D tax credits and grants. Free cash flow burn increased by 31% to $52.5 million, up from $39.9 million in the comparable period of 2024, primarily due to tooling investments and inventory buildup in support of the P7 program.

REE’s cash and cash equivalents stood at $54.7 million as of June 30, 2025, down from $72.3 million at December 31, 2024, each figure inclusive of an $18 million credit facility. By November 30, 2025, liquidity excluding the credit line had further declined to $17.2 million, underscoring ongoing cash burn pressures despite strategic cost controls and partnership revenues yet to commence.

Management is executing a cost reduction plan aimed at trimming monthly operating expenses from an average of $6.0 million in H1 2025 to approximately $3.1–3.3 million in Q4 2025, and targeting a further reduction to $1.8 million per month by the end of Q1 2026. Key initiatives include a reduction-in-force, operational efficiencies, and elimination of one-time charges, representing a 70% decline in ongoing operating costs compared to the first half of 2025, designed to extend the company’s runway and support long-term technology commercialization goals.