The company is effectively out of cash and pursuing a sale or other strategic alternatives. Traders should expect either a dilutive rescue financing at distressed terms or a near-zero recovery in a bankruptcy scenario. The stock is likely to trade toward zero absent an immediate capital infusion or acquisition at a premium to current market cap.
Price Chart
Executive Summary
REE Automotive filed its FY2025 annual results, confirming a net loss of $55.8M, cash burn to $4.9M as of May 4, 2026, and a going-concern risk with a strategic review process underway. The filing reinforces the severe liquidity crisis and lack of revenue from product sales, with the company's cash runway effectively exhausted.
Key Facts
- Cash and cash equivalents fell to $14.2M at Dec 31, 2025, and further to $4.9M as of May 4, 2026.
- GAAP net loss was $55.8M for FY2025, compared to $111.8M in FY2024.
- Non-GAAP net loss was $57.7M for FY2025, compared to $70.3M in FY2024.
- Free cash flow burn was $75.0M for FY2025, nearly unchanged from $76.5M in FY2024.
- Revenue was $1.3M for FY2025, up from $0.2M in FY2024, but still negligible.
- Company paused vehicle production in May 2025 and has no current revenue from product sales.
- Strategic alternative process initiated, including potential sale, with TD Securities engaged as financial advisor.
- UK subsidiary entered administration; going-concern warning issued in the 20-F filed concurrently.
- Shareholders' equity was $6.75M as of Dec 31, 2025, down from $23.1M a year earlier.
- Weighted average shares outstanding doubled to 32.1M from 15.9M, reflecting significant dilution.
Financial Impact
Cash burn of $75M/year against $4.9M remaining cash implies less than 1 month of runway without additional financing or a strategic transaction.
Risk Factors
- Imminent cash depletion — only $4.9M remaining as of May 4, 2026.
- Going-concern risk — existing resources only fund operations into mid-Q2 2026 per the 20-F.
- Dilution risk from any rescue financing or warrant exercises.
- Strategic alternative process may result in zero recovery for common equity holders.
- Nasdaq delisting risk due to low market cap and potential non-compliance.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001213900-26-057127 |
| Document: ea0290837-6k_ree.htm | 0001213900-26-057127 |
| Document: 0001213900-26-057127-index-headers.html | 0001213900-26-057127 |
| Document: 0001213900-26-057127-index.html | 0001213900-26-057127 |
| Document: 0001213900-26-057127.txt | 0001213900-26-057127 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jul 13, 2026 11w ago | 25-NSE | $0.0770 $0.0770 | · 0.00% | ▲ +0.36% | — |
Jul 3, 2026 13w ago | Press Release | $0.2098 $0.0769 | ▲ +63.35% | ▲ +64.22% | — |
May 15, 2026 20w ago | 6-K | $0.4420 $0.4200 | ▲ +4.98% | ▲ +4.92% | — |
May 15, 2026 20w ago | 20-F | $0.4420 $0.4200 | ▲ +4.98% | ▲ +4.92% | — |
US Market Status
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