Shares of REE Automotive Ltd. (REE) slipped nearly 35% on Tuesday morning after the company said it entered into a non-binding memorandum of understanding (MOU) with a global technology company developing and marketing new mobility solutions for passenger and freight transport. Separately, REE Automotive prices $27 million registered direct offering of ordinary shares.
REE is currently trading at $4.2900, down $2.2800 or 34.70%, on the Nasdaq. The stock opened its trading at $5.2200 after closing Monday at $6.5700. The stock has traded between $2.9100 and $11.7200 in the past 52-week period.
The MOU outlines the companies' intent to develop and produce multiple thousands of autonomous-driving (AD) vehicles based on REE's existing P7 platform.
The parties intend to sign a strategic collaboration agreement by year-end 2025. It is estimated that the agreement will generate up to $770 million in potential revenues over the next five years. Through this collaboration, the companies plan to lead the global autonomous transportation market by integrating next-generation software-defined electrical architecture and best-in-class software technology.
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