REE closes $15M share offering, links with Airbus, and showcases demo EV at Work Truck Week

EV startup REE Automotive is off to a newsworthy week so far, dropping three separate updates regarding its business strategies and unique technology. In addition to a new collaboration to provide technology to aerospace developer Airbus UpNext, REE closed a public offering of ordinary shares this morning, totaling close to $15 million. Lastly, the public is getting its first public look at REE’s all-electric demo vehicle at Work Truck Week 2024.

REE Automotive, Inc. ($REE) remains a nascent EV startup specializing in modular platforms, “x-by-wire” technology, and unique in-wheel motors called REECorners. The combination of all this technology is the P7-C electric truck, which began deliveries in January following certification in the US, the first of its kind to do so.

Commercial operators have taken notice of REE and the potential of its modular technology, filling its order books with tens of millions of dollars. This morning, REE announced further financial runway to continue its work, closing a public offering of ordinary shares.

Not to be outdone, REE also shared two additional updates, including a look at a demo truck on display in Indiana later today.

REE showcases electric truck following issued shares

Let’s start with Airbus UpNext. On Tuesday, REE announced it had been selected by the aerospace subsidiary of Airbus SE to provide technological insight. More specifically, the collaboration pertains to REE’s x-by-wire and REECorner systems.

REE shared that Airbus UpNext will use the technology in one of its research and technology demonstrators. However, a representative for REE told Electrek it cannot share any more details at this time. Per Airbus UpNext’s website, it is currently developing five different demonstrator vehicles.

This morning, REE Automotive also shared that it has closed its previously announced underwritten public offering of 2.3 million Class A ordinary shares. Each ordinary share was sold at a public offering price of $6.50 each. REE says the gross proceeds from the completed offering total roughly $14.95 million and will be used for working capital toward product development and commercialization, in addition to “general corporate purposes.”

M&G Investment Management Limited – REE’s largest shareholder led the offering. Co-head of APAC Equity Investing at M&G Carl Vine spoke about the public offering of ordinary shares and its confidence in REE looking forward:

We continue to be very impressed with REE’s execution and its technological achievements. Let’s not lose sight of the fact that REE’s x-by-wire technology, which sits at the heart of its offering, is unlike anything else commercially available today. REE’s business model has always been differentiated from other companies that we have seen come and go in this space. By only ever intending to supply the critical, technology-driven aspects of its flexible vehicle-platform, REE has always held the promise of strong unit economics with only modest capital needs.

Lastly, REE is showcasing its full-by-wire electric truck (seen above) at Work Truck Week in Indianapolis, Indiana. The REE demo truck debuted during a private Knapheide Distributor Event on Tuesday, in which Knapheide’s sales and installation partners got to experience the complete vehicle solution up close.

This afternoon, REE and Knapheide will discuss the electric truck with Work Truck Week attendees and media during a joint media conference at 3:45 PM ET at the REE booth (#1843). REE co-founder and CEO Daniel Barel spoke to the potential of its platform technology and how its modularity can suit several commercial fleet customers more easily:

REE prides itself on being upfit ready. No  two fleets have the exact same business needs or use cases, and when they purchase a Powered by REE  vehicle our technology allows them to not be constrained by traditional vehicle architecture. The REE  vehicles use electronic control to replace legacy mechanical and hydraulic systems for critical operations  including braking, driving and steering. The absence of traditional mechanical components increases  cabin space and cargo volume, allowing for a low floor creating almost endless upfit possibilities.”

Work Truck Week 2024 continues from the Indianapolis Convention Center through Thursday, March 7.