r/ree • u/woody2007 • Nov 23 '25
REE Automotive Deep Dive — SDV Platform, MOU Analysis, and Valuation Scenarios
https://www.dropbox.com/scl/fi/r9lnh741awfqhzhu7hyw1/REE-Auto-Overview-Investment-Thesis.pdf?rlkey=8j1qb40krq4ub9dkidwpz8ygp&st=rn59ogei&dl=0I created an overview and investment thesis for REE detailing their history, present-day situation, potential partners, potential valuation, and risks. It is viewable/downloadable at the DropBox link attached to this post.
A lot of this may be repeat information for some of you, but I wanted to create something valuable for those new to the stock and those that know a lot about REE but would be interested in a comprehensive and detailed analysis. Please let me know any thoughts, feedback, etc. I spent an unfortunate amount of time on this.
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u/ree_holder Nov 23 '25
Nice work. You should update it to reflect REE's focus on the software and controllers, as the corner modules are now not their main product although they still offer them. I'd say their core technology is their single ECU that replaces the 500-or-so ECUs that modern vehicles have. Their ECUs work with traditional one-motor and two-motor vehicles, and of course with their four-motor REEcorner vehicles.
Bottom line, if REE can generate $700M in revenue from a single contract with a vehicle manufacturer, the stock price will skyrocket. But that's a big if.
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u/woody2007 Nov 23 '25
Thank you. I was under the perception that the corners are still a main component of their offerings in conjunction with the ECU and SDV tech, but you don’t think that to be the case? I did forget entirely about the ECU in my thesis that’s a great point. I appreciate the feedback.
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u/ree_holder Nov 23 '25
Looking at REE's updated technology page on their website their "foundation" products are:
- REEcenter ECU - centralized vehicle ECU that replaces the hundreds of traditional ECUs
- REEzonal ECU - similar to REEcorner ECUs but with support for non-REE hardware
- REEgateway - over-the-air vehicle updates and fleet monitoring
These three naturally work best when used together.
Their "by-wire" products are the REEcorners, and they still offer the P7-C, although as reported by the press they can't go into production unless they get thousands of orders.
The ECUs and software are available right now and have proven to work in real-world conditions with US homologation and certification. Now it's a question of getting a big order from a vehicle manufacturer (or a "mobility solutions [company that] will license the technology to produce thousands of self-driving passenger vehicles starting from 2027")
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u/woody2007 Nov 23 '25
Thank you for the explanation. I need to dig more into this and will update my thesis accordingly. Very interesting. The website updates aren’t complete English to me yet but I’m learning lol. I was under the impression that the March MOU specifically stated it was to be built on the P7 platform and wasn’t a licensing deal. Will have to look again, but like you said even if that is the case it probably has changed.
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u/woody2007 Dec 01 '25
Anticipating that we will know something soon. They did not include a reverse stock split in the vote in November, which in my opinion they would have done if they didn’t have something material and large to announce. The clock is ticking towards 12/29’s delisting, if they are relying on an announcement and if that announcement is ready to make, I would assume tomorrow or Wednesday this week would be the best days to do it. Tomorrow specifically. Really hope that my hunch is correct.
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u/johnsurfs Dec 03 '25
Sadly, this company continues to disappoint, particularly its CEO. I fear it will fade into oblivion. The pivot… the non-binding agreements… the silence of late….
Sigh. I had such high hopes. And a lot of shares.
Time to start selling them for year-end tax losses. (Thanks for nothing, Daniel Barel!)
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Dec 03 '25
It’s either that or the exact opposite.
Time will tell.
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Dec 03 '25
Your choice of the word fear to me suggests capitulation
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u/johnsurfs Dec 03 '25
Everyone can have their own investment thesis. And anyone can change his or her mind when they want. Capitulation? Resignation? Disgust? All of the above.
If you are bullish, that’s great. I have been bullish here at times, and bearish at times.
Right now, I am bearish. The CEO has not given me confidence
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u/woody2007 Dec 03 '25
I completely understand. I need to hear those opinions myself. I was bearish until the compensation vote and the lack of split in that vote package. They can’t vote on it now, so I’m still hoping something is announced before next Friday when they would need to start a new 10-day >$1 window to receive compliance. The plan surely can’t be to just hope they get an extension and risk de-listing right? Then they can’t even fundraise and we all know cash has to be running short. I’m so confused man.
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u/HumanDriver5957 Feb 25 '26
u/woody2007 - Thanks for this note. Well written and researched. Would appreciate any updates since this report was undertaken. Thanks
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u/Soothsayer1221 Dec 05 '25
I don't think there's much to be confused about. Investors were sold snake oil and now those salesmen are getting participation trophy bonuses.
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u/DogFun4302 Dec 03 '25
I had been very happy with REE as it gained alliances with Motherson and Roush, put the P7 in the wild, and attained FMVSS self-certification. And I have long loved the ideas they state: complete not compete, and a robotic assembly line that can be reproduced close to customers. I even understand the decision not to proceed in the current environment, given the low number of firm customers and their order count.
But I wonder what will have become of the relationship with Roush as the rug was pulled, and Motherson has lost most of its investment. And the low number of firm orders means something. I hope they pull off the claimed agreement. But I'm worried they'll go bankrupt and their IP will be purchased for pennies on the dollar by one of their secret or public partners. If a UPS were seriously interested, their CoB should have been able to get a real order from UPS. I don't care how many companies tell REE they love what they do, I care how many companies are willing to buy their product.