The company cited worsening macroeconomic conditions and trade policy uncertainty for its production pause.

Shares of REE Automotive hit an all-time low on Thursday after the Israel-based electric vehicle technology firm posted disappointing fourth-quarter results and declared a temporary production stoppage due to deteriorating macroeconomic conditions and a complex capital environment.

The stock plunged 71.7% to $0.93 on Thursday.

In Q4 2024, GAAP net loss reached $37.3 million, which translates to $0.80 per share, while the company generated only $12,000 in revenue. 

The firm experienced a net loss of $35.2 million with $11,000 in revenue during the fourth quarter of 2023. 

The full-year GAAP net loss for REE reduced marginally to $111.8 million in 2024 from $114.2 million in 2023 due to decreased R&D expenses after completing its P7 platform development.

The company made some progress in cost reduction but expressed substantial doubt regarding its ability to sustain operations during the next year. 

The company pointed to recent U.S. tariff changes, global supply chain instability, and increased uncertainty within the EV sector as factors hindering its production scaling and debt-raising capabilities.

REE declared that it would temporarily suspend its planned production expansion while concentrating on distributing its software-defined vehicle technology to OEMs and technology partners. 

CEO Daniel Barel said that the company's new partnership-focused model helps preserve cash while extending their financial runway.

In 2024, REE closed with $72.3 million in cash and equivalents, a decrease from $85.6 million in 2023 despite securing approximately $60 million in equity during the previous year and $36.5 million in Q1 2025.

The company intends to reduce operating costs and personnel to navigate persistent industry instability. 

Management said that producing goods continues to be a long-term objective, yet they have shifted their focus to capital efficiency and strategic flexibility at present.

On Stocktwits, retail sentiment was ‘extremely bullish’ amid a 2,200% surge in 24-hour message volume.

Some retail traders voiced long-term optimism, with one user remarking that a company able to weather both COVID-19 and current tariff-related headwinds could potentially emerge stronger and profitable in the future.

Others were skeptical of the company’s justification for halting production. One user questioned REE's reasoning, arguing that tariffs alone may not explain the pause, as other OEMs facing similar conditions have continued operating. 

The stock has declined over 90% so far in 2025.

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