A new electric powered motor vehicle firm is hitting the public markets as an SPAC offer delivers REE Automotive public.
The SPAC Deal: REE Automotive, a leader in eMobility, announced a SPAC offer with 10X Funds Enterprise Acquisition Corp (NASDAQ:VCVC) to go general public.
Prolonged-phrase traders in REE Automotive include Koch Strategic Platforms, Mahindra & Mahindra, Mitsubishi, American Axle & Production (NYSE:AXL) and Magna Worldwide (NYSE:MGA).
The deal will give $500 million in gross proceeds to REE Automotive. The deal values REE Automotive at $3.1 billion.
Shareholders of 10X Money Undertaking Acquisition Corp will personal 5.6% of the enterprise if the merger is accepted.
About REE Automotive: REE Automotive features a fully flat and modular system for electric powered motor vehicles based mostly on its proprietary REEcorner technological know-how.
REE Automotive suggests it provides a low total value of ownership for its clients.
The business integrates factors including steering, braking, suspension and powertrain manage into the wheels on the REECorner system.
REE Automotive has an agnostic tactic focusing on who or what wins. The company delivers battery and gasoline cell options, autonomous and human driven automobiles and platforms for startups and incumbent providers.
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Growth Ahead: REE Automotive is targeting a $700-billion total addressable market place for Class 1 to Class 6 professional vehicles.
The SPAC merger is envisioned to accelerate the enterprise to mass production of its REECorner technologies and platforms to start in 2023.
REE Automotive has secured a international community of Tier 1 companions in more than 30 nations around the world. Consumers include investors like Mitsubishi and also Hino Motors, the medium and significant responsibility trucking arm of Toyota Motor (NYSE:TM).
The company’s order ebook has 260,000 models signed. Around 477,000 models are in the superior pipeline phase and could be added to the get book.
Competition: REE Automotive has the greatest full addressable current market dimension of its peer team, as it offers a few platforms instead of one or two from competition. The company also can create platforms for Course 1 to Course 6, though competition target on 1 or two courses.
The competitors for REE Automotive named in the offer presentation are Arrival, which is going general public with CIIG Merger (NASDAQ:CIIC) Rivian Canoo (NASDAQ:GOEV) Fisker (NYSE:FSR) Nikola Corp (NASDAQ:NKLA) Hyliion Holdings (NYSE:HYLN) and Lordstown Motors Corp (NASDAQ:Journey).
Financials: Profits estimates phone for $19.1 billion by fiscal 2026. The business has 27% of its envisioned earnings at this time signed to discounts. REE Automotive has $5.1 billion in signed promotions and $14 billion in innovative pipeline levels.
REE Automotive expects to be rewarding by fiscal 2024.
The SPAC offer values REE Automotive at .6x EV/fiscal 2025 believed earnings and 3.5x EV/fiscal 2025 EBITDA estimates.
Price Motion: Shares of 10X Capital Venture Acquisition are up 39.85% to $15.30.