TEL AVIV - REE Automotive Ltd. (NASDAQ: REE), an electric vehicle technology company, has been chosen by Airbus UpNext, a subsidiary of Airbus SE (OTC:EADSY), to provide its expertise in fully-by-wire control systems for a new research and technology demonstrator.
The collaboration, announced today, leverages REE Automotive's proprietary REEcorner® technology, which integrates critical vehicle components such as steering, braking, suspension, powertrain, and control into a single compact module. This technology aligns with Airbus UpNext's ambitions to explore advanced aeronautic configurations.
Tali Miller, Chief Business Officer at REE, expressed the significance of the agreement, stating, "This contract is a recognition for our fully-by-wire technology."
REE Automotive's technology is noted for enabling a high degree of design freedom, allowing the creation of electric vehicles with various shapes and sizes using modular platforms. The company has made strides in the industry by being the first to FMVSS certify a fully by-wire vehicle in the U.S. The REEcorner® modules are designed to make EV platforms flatter, providing more space for passengers, cargo, and batteries.
Moreover, the platforms are prepared for future developments, including autonomous capabilities, and aim to offer a low total cost of ownership and reduced time to market for electric fleets.
This partnership with Airbus UpNext underlines the potential of REE Automotive's technology in sectors beyond automotive, highlighting the cross-industry applicability of its fully-by-wire control systems.
The details of the financial terms and specific objectives of the research and technology demonstrator have not been disclosed.
This news is based on a press release statement from REE Automotive.
InvestingPro Insights
As REE Automotive Ltd. (NASDAQ: REE) forges a notable partnership with Airbus UpNext, investors are closely monitoring the company's financial health and market performance. The recent data from InvestingPro shows a challenging financial landscape for REE, with a negative Price to Earnings (P/E) ratio of -0.68 over the last twelve months as of Q3 2023, indicating that the company has not been profitable during this period. This is further reflected in the company's Gross Profit Margin, which stands at a concerning -104.42%, and an Operating Income Margin of -9586.56%, suggesting significant operational costs relative to revenue.
However, the company's market activity presents a mixed picture. Over the last three months, REE's stock has seen a substantial price total return of 40.21%, signaling a strong short-term investor confidence. This growth, however, must be weighed against a 1-year price total return of -45.27%, underscoring the volatility and long-term challenges faced by the company. With a market capitalization of 58.28 million USD, REE is a smaller player in the industry, which can often lead to more pronounced swings in stock performance.
InvestingPro Tips suggest that investors should be mindful of the company's significant EBITDA growth of 21.47% over the last twelve months as of Q3 2023, which could be indicative of potential operational improvements. Additionally, the InvestingPro Fair Value estimate of 10.91 USD presents a more optimistic outlook compared to the previous close price of 6.73 USD. This disparity may point to an undervaluation of REE's stock, suggesting a possible opportunity for investors.
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