LAS VEGAS - REE Automotive Ltd. (NASDAQ: REE), a leader in electric vehicle (EV) technology, announced today that Penske Truck Leasing will provide demonstrations and take orders for REE's innovative electric trucks. This move aims to bolster the adoption of EVs in commercial fleets and adds to REE's existing $50 million order book.
The collaboration will be showcased at the Advanced Clean Transportation (ACT) Expo, where the P7-C, a fully by-wire EV with all-wheel steering and drive capabilities, will be on display at REE's booth. The truck, certified by U.S. Federal Motor Vehicle Safety Standards, boasts a range of up to 169 miles and features a driver-centric cab and a 16-foot Wabash DuraPlate® body with a ramp.
Paul Rosa, Senior Vice President of Procurement & Fleet Planning at Penske, and Daniel Barel, co-founder and CEO of REE, are scheduled to hold a joint press conference on May 22, 2024, to discuss the partnership in detail.
REE's P7-C is designed to maximize maneuverability, safety, and serviceability, leading to a lower total cost of ownership. The truck's modular design and over-the-air upgrade capabilities make it future-proof and autonomous-ready.
The collaboration with Wabash has resulted in a custom truck body that leverages the P7-C's unique characteristics, such as its low floor and all-wheel steer, to enhance the feasibility of electric chassis for fleets while maintaining durability.
REE Automotive's patented technology allows for the integration of critical vehicle components into a single compact module between the chassis and the wheel, enabling more space for passengers, cargo, and batteries. Penske Truck Leasing, a company with a significant presence in North America, offers full-service truck leasing, fleet maintenance, and a range of transportation solutions.
The information for this article is based on a press release statement from REE Automotive Ltd.
InvestingPro Insights
As REE Automotive Ltd. (NASDAQ: REE) forges a promising partnership with Penske Truck Leasing to showcase its P7-C electric truck, investors and industry observers are closely monitoring the company's financial metrics to gauge its market position and growth potential. REE's market capitalization stands at a modest $48.29 million, reflecting the company's current value in the eyes of investors. Despite a challenging financial performance with a negative P/E ratio of -0.44 for the last twelve months as of Q4 2023, the company's PEG ratio of 0.14 during the same period suggests potential for future earnings growth relative to its earnings decline rate.
InvestingPro Tips highlight that REE's gross profit margin was deeply negative at -103.36% for the last twelve months as of Q4 2023, indicating that the cost of goods sold exceeded the company's revenue. This is a critical area for the company to improve upon as it scales up its operations and moves towards profitability. Additionally, the company's operating income margin stood at -7455.97% for the same period, further underscoring the need for operational efficiency and cost management.
Despite these challenges, the company's stock has experienced a notable 1-month price total return of 26.7% as of 2024.D136, which may reflect investor optimism about the company's strategic initiatives, such as the partnership with Penske. Investors interested in deeper insights can find additional InvestingPro Tips on the platform, which currently lists 7 more tips for evaluating REE's financial health and investment potential. To access these insights and more, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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