TEL AVIV - REE Automotive Ltd. (NASDAQ: REE), a leader in electric vehicle (EV) technology, has announced its approval for the Massachusetts MOR-EV truck incentive program. This approval could enable significant cost savings for fleet operators in the state, potentially reducing the price of REE's class 4 P7-C chassis cab by up to $70,000 when combined with federal incentives.
The MOR-EV program offers a $30,000 rebate per truck, aimed at accelerating the adoption of electric commercial vehicles. With the additional federal commercial clean vehicle tax credit, Massachusetts fleets could see a reduction in costs by 37% per vehicle. The P7-C chassis cab, known for its software-driven, full by-wire control system, is now available for order through authorized REE dealers in Massachusetts and throughout the United States.
According to Richard Colley, VP of Government & Regulatory Affairs at REE Automotive, these incentives support the company's mission to help fleets transition to electric mobility more rapidly. He also mentioned that REE has applied for eligibility in other incentive programs across various states, including California's HVIP, and is awaiting further updates.
REE's technology includes the REEcorner® system, which integrates steering, braking, suspension, powertrain, and control into a single compact module. This design allows for a flat EV platform that provides more space for passengers, cargo, and batteries, and is adaptable for autonomous capabilities. The company's platforms are engineered to offer a low total cost of ownership (TCO) and reduce the time to market for new electric fleets.
The incentives are available to a broad range of entities, including private and nonprofit organizations, educational institutions, and government bodies at various levels.
InvestingPro Insights
As REE Automotive Ltd. (NASDAQ: REE) positions itself to take advantage of state and federal incentives for EV technology, a look at the company's financial health is essential for investors. With a market capitalization of $51.11 million, REE's valuation reflects a niche player in the burgeoning EV market. Notably, the company's price-to-book ratio for the last twelve months as of Q4 2023 stands at 0.65, suggesting that its stock is trading at a discount relative to the company's book value. This could indicate a potential undervaluation, making it an attractive target for investors seeking to capitalize on the EV trend.
While REE's growth prospects are tied to its innovative EV technology, the financials show a challenging picture with a negative gross profit margin of -103.36% and an operating income margin of -7455.97% for the same period. These figures highlight the company's current state of investing heavily in its technology and growth, which is not uncommon for early-stage tech companies. However, the recent price performance shows a positive trend in the short term, with a 1-week price total return of 17.38% and a 1-month price total return of 28.61%, reflecting investor optimism following the recent announcement.
For those considering an investment in REE Automotive, the InvestingPro Tips suggest that the company's stock may have a fair value of $6.24, as opposed to analyst targets of $15. This discrepancy could be due to differing views on the company's future earnings potential and market expansion. With additional tips available on InvestingPro, investors can gain deeper insights into REE's valuation and performance metrics. To access these tips and make an informed investment decision, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a total of 5 additional InvestingPro Tips.
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