Wells Fargo Sees 54% Downside In REE Automotive - Read Why - REE Automotive (NASDAQ:REE)

Wells Fargo analyst Colin Langan initiated coverage of REE Automotive Ltd REE with an Underweight rating and $1 price target, implying a 54.55% downside.
Langan said the total fetchable market by 2030 was much smaller than the company’s estimate of $700 billion.
The analysts also added that REE will burn through half of its cash in 2022 and is doubtful that it will be able to slow down cash burn in 2023.
Langan notes another capital raise will be needed for the company.
Price Action: REE shares are trading lower by 5.00% at $2.09 in premarket on the last check Friday.