REE Automotive CEO Daniel Barel joined Benzinga's "SPACs Attack" show Wednesday to talk about the company's path to the Nasdaq, the EV market and more.
The SPAC Deal: In early February, REE Automotive, a leader in eMobility, announced a SPAC deal with 10X Capital Venture Acquisition Corp VCVC to go public.
The deal will bring $500 million in gross proceeds to REE Automotive. The deal values REE Automotive at $3.1 billion.
Shareholders of 10X Capital Venture Acquisition Corp will own 5.6% of the company if the merger is approved.
Barel On Going Public: Benzinga asked Barel why his company is going public via SPAC.
"The reason we decided to go public via SPAC is because you can get much faster to the market, and more importantly, you can choose your running partners," he said.
REE Automotive's Partnerships: REE Automotive has been working on partnerships with companies like Mitsubishi and Mahindra & Mahindra.
The company has been working on creating a strong partnership foundation, Barel said, adding that it's very important for the company's long-term growth.
"We are set up to build something that is going to last at least for a century. A new platform, a new mobility. You need to build a very strong network and very strong partnerships to build something big," he said.
REE Automotive's New Technology: Barel discussed the uniqueness of REE Automotive in the EV market.
The world has been moving toward different sizes and different kinds of vehicles, he said.
"But it takes so long to bring them on. We decided to bring a brand new technology to the market which allows that modularity. We are actually very modular. We can have our vehicles any size, shape, and kind. We can run them by any battery, fuel cell, and they can be driven autonomously or manually."
REE Automotive's Different Markets: Benzinga asked Barel about the company's Class 1 and Class 8 models.
"We are currently concentrating on the commercial and mobility service segments. I believe these segments are growing exponentially year-over-year," he said.
The company sees huge demand for vehicles in different sizes and shapes in all categories, Barel said.
"We are currently working on things from very small vehicles under 1 ton all the way to Class 6 and up."
REE Automotive's Financials: REE Automotive's revenue estimates call for $19.1 billion by fiscal 2026. The company has 27% of its expected revenue currently signed to deals. REE Automotive has $5.1 billion in signed deals and $14 billion in advanced pipeline stages.
REE Automotive expects to be profitable by fiscal 2024.
The company has a large number of customers.
"We are talking about 14 players that we are engaged with to build up that stream," Barel said.
The market has different segments, he said.
"We are not depending on each segment. We exist in all segments in the commercial and mobility services."
About REE Automotive: REE Automotive offers a fully flat and modular platform for electric vehicles based on its proprietary REEcorner technology.
The company integrates components including steering, braking, suspension and powertrain control into the wheels on the REECorner platform.
The company offers battery and fuel cell solutions, autonomous and human driven vehicles and platforms for startups and incumbent providers.
The company's long-term investors include Koch Strategic Platforms, Mahindra & Mahindra, Mitsubishi, American Axle & Manufacturing and Magna International.
VCVC Price Action: Shares of 10X Capital Venture Acquisition were down 2.1% at $11.67 at the close Wednesday.
REE Automotive vehicle platforms. Courtesy photo.
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