Why Shares of EV Company Ree Automotive Soared Today | The Motley Fool
Many investors have recently shifted away from pre-revenue start-ups in the electric vehicle (EV) sector. But the shares of several companies are soaring higher today, including those of Israel-based Ree Automotive (NASDAQ:REE). As of 12:22 p.m. ET, Ree shares were 26.4% higher.
Today’s jump didn’t come from any new company announcement, at least not from Ree. But the market has caught on to some other EV start-up names that have recently announced real progress. And that seems to be driving Ree Automotive shares higher today. Electric semi truck maker Nikola recently announced it shipped its first vehicles to customers, and that has investors excited about several other names, too.
In its most recent third-quarter financial update, Ree reported a net loss of $415 million. But the company hopes to use its modular EV platform to turn that around when customers increasingly build electric vehicles. Ree recently launched a new product under collaboration with a maker of an autonomous last-mile delivery concept vehicle enabled by Ree’s EV platform.
Ree also recently began a strategic partnership with Hitachi America, a subsidiary of global electronics company Hitachi. In a joint statement, the companies said the agreement “will accelerate the development of advanced digital solutions for REE customers by co-creating a highly scalable Data-as-a-Service (DaaS) and Analytics-as-a-Service (AaaS) platform, which will enable next-generation connected commercial EVs.”
But today’s outsized stock move seems to be in sympathy with Nikola’s first deliveries. Ree shares are still down more than 50% thus far in 2021, even after today’s bounce. But investors should focus on the company’s progress going forward, not that of another industry start-up.
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