REE Automotive Ltd.

Thank you all for joining our second quarter 2022 conference call. We hope that you have seen our press release and investor presentation issued earlier this morning at investors.ree.oto. We will be referring to the presentation during the webcast today. I would like to remind you that today's call may include forward-looking statements. Any statements describing our beliefs, goals, plans, strategies, expectations, projections, Forecasts and assumptions are forward-looking statements. Please note that the company's actual results may be different from other anticipated by such forward-looking statements for a variety of reasons, many of which are beyond our control. Please refer to the company's Form 20F filed on March 28, 2022, with the Securities and Exchange Commission, which identifies the principal risks and uncertainties that could affect our business prospects and future results. We assume no obligation to update publicly any forward-looking statements except as required by law. In addition, we will be discussing or providing certain non-GAAP financial measures today, including adjusted EBITDA, non-GAAP net loss, and non-GAAP EPS. Please see our earning release for reconciliation of these non-GAAP measures to their most directly comparable GAAP measures. Joining me today is our co-founder and CEO, Danielle Barrell, who will provide an overview of our business. Josh Tech, our COO, will then provide you with an operations update. Our CFO, David Goldberg, will continue with a discussion on our financial results and outlook. After that, we will open up the call for Q&A. At this point, I will turn the call over to Daniel. Daniel, please.

Thank you, Limor. Good morning and welcome to our second quarter 2022 earning call. I will begin the call by providing you with an update on the progress we are making towards commercialization of two separate P7 products as we focus on converting our pipeline into backlog. Moving to slide four, I would like to begin by saying that we had a strong second quarter during which we continued to execute our business plan in a disciplined manner. REE had two main goals for the quarter. The first was to receive customer input on the P7 product line. The feedback we have received from leading commercial fleet operators and owners in North America and Europe has been very positive. As customer evaluation progress, we are seeing strong interest in electric vehicle powered by REE and we expect to receive firm orders in the next few months and to start delivering test fleets to our customers. Delivering test fleets to customers is a critical milestone on the path to scale adaptation of powered by REIT vehicles. Commercial owners and operators are highly sensitive to vehicle uptime, durability, and efficiency. Introducing new vehicles into fleets must make sense from a business and operational perspective, and the only way to reach scale adoption of a new vehicle is by introducing a test fleet and having this test fleet operate as well or better than current options. This is the path to firm follow-on orders in significant quantities. We will only announce firm orders going forward. In addition to pounding the ground and deploying test fleets powered by REIT, regulatory tailwinds, such as the recent Inflation Reduction Act, are supporting the shift of major commercial fleets to electric vehicles. We are actively assessing the potential benefits of the IRA to our business. The second goal was to continue the development of our production capacity. We have made great strides in building out our initial integration center. As Josh will describe shortly, as we progress, for the initial capacity of 10,000 vehicle sets this year. The launch of our second integration center is also progressing. When complete, this facility will double our production capacity to 20,000 vehicle sets annually. Development of both integration centers are on track and on budget. Moving to slide five. As you may recall, our P7 platform which we revealed at the beginning of this year, is a modular platform designed to accommodate commercial vehicles from Class 3 to 5. Since that reveal, we have debuted two full vehicles, both powered by our P7 platform. As many of our listeners today are aware, we hosted an investor event two weeks ago, during which we showcased the Proxima powered by REIT, a Class 5 walk-in van, and the industry's first fully-by-wire commercial vehicle. This event followed a series of evaluations by prospective fleet customers with leading positions across delivery, logistics, and retail segments. In addition, we have been testing and showcasing the P7B, a Class 3 box truck, at our UK Engineering Center for several months now. For those of you who might have missed it, recent announcements and the investor event I'll take a moment to describe some of those two EVs benefits. On slide six, Proxima powered by REIT is the most advanced walk-in van in existence. The body is designed by EAVX and built by Morgan Olson, both subsidiaries of GAB Poindexter, a company with significant market share and a multi-decade track record in upfitting commercial vehicles. REE, the manufacturer of record, provides the backbone of the vehicle. The technical benefits of our chassis coupled with the commercial domain expertise and state-of-the-art body by Morgan Olson deliver what customers and their drivers are looking for, efficient and durable electrified vehicle that can be optimized for specific use cases resulting in attractive economy. Proxima powered by REE has many technical attributes that provide real-world benefits to fleet owners. During evaluations, we heard from potential customers that they appreciate these game-changing advantages that include enhanced maneuverability and safety with all-wheel steer and all-wheel drive, low stepping height, for efficient delivery cycle times and agronomics that reduce driver distraction, providing fleet efficiencies and driver win. Proxima powered by REE has many other amazing features, and I encourage you to watch the replay of the investor event on our website if you have not done so. Moving to slide seven. On the back of the customer evaluation of Proxima Power by REIT, we expect to receive firm orders for test fleets from multiple customers, and we look forward to sharing more with you soon. These test fleets will be used for real-world evaluation by our customers. Some of our prospective customers have very large fleets that will not be electrified all at once and without significant testing. We believe orders for test flights will mark the beginning of multiple long-term relationships and that we will receive larger orders after customers collect validating data and positive driver feedback. We're obviously not the only company competing in this area, but we believe our product is the best in class and that our go-to market partnership for the Proxima body and the P7 chassis is a real competitive advantage. Proxima Power by REIT went from concept to product design from the ground up in just one year, a very short time by industry vehicle development standards. I am very proud of both our teams for their accomplishment and for our joint commitment to electrification and carbon neutrality. Moving to slide eight, The second vehicle we unveiled, the P7B, has undergone month of positive and encouraging customer evaluation at our engineering center in the UK and is on track for 2023 production. The P7B is built on a class three P7 chassis, the same platform underlying Proxima powered by Ring. That means it delivers many of the same fleet and driver benefits, which we believe will deliver lower TCO total cost of ownership. The P7B is targeted at the important and growing mid and last mile delivery segments. The on-track testing of the P7B and extensive potential customer evaluation is a crucial step on the road to commercialization. Feedback from prospective customers has been that this is the truck they have been looking for. One that drives like a sedan and is built to deliver under the harshest commercial duty cycle. They also appreciate the flexibility of the P7 as it can be configured to best suit customer needs. We expect real world trials with customers to commence next year. Moving to slide nine, as we have demonstrated, Because of its modularity, we are able to quickly deploy our technology for a variety of applications. This allows us to access distinct go-to market channels, including designing and building our own vehicles for direct sales to fleet customers, as in the case of the P7B, and through partnerships with upfitters. As we shared before, REE is the manufacturer of record for Proxima and P7B, making us responsible for the homologation and certification of the electric platform. The homologation and certification activities are progressing on track at both the component and system level. Additionally, core control system, software and functionality, safety development, Key elements of the development of mission-specific variation enabled by Reconis are progressing according to plan. While our main focus is commercialization of P7, we have other projects in various stages of development, and we will share updates about these as appropriate. With this, I would like to pass it on to Josh for an update on our operational progress. Josh?

Thank you, Daniel, and good morning. While I met many of you at our recent IR event, this is my first earnings call at REIT. I'm very happy to be here today and share with you some updates on our operational progress. Moving to slide 11, we remain on schedule with commercialization both operationally and financially. Operationally, our core UK engineering team is now substantially built out. All key engineering functions are now in-house and process management and infrastructure is in place. Our engineering test fleet in the UK is accumulating durability miles progressing through verification and validation activities in preparation for production of design intent builds later in the fourth quarter. We are on track to hit the production capacity targets we have previously communicated. Our first assembly line will soon be installed in our Coventry UK Integration Center, which is our launch factory and blueprint for all future integration centers. It is expected to have a capacity of 10,000 vehicle sets by the end of this year. The Austin, Texas Integration Center is also underway with the shell being stood up and complete. I would add that our first integration center is nearly complete, and we have the ability to accelerate the development of our second integration center if needed by replicating the template of the first integration center. Moving to slide 12. Now I would like to give you more color on our integration centers, which will use robotic assembly cells, end-of-line electrical tests, and auto-boxing stations. An assembly cell is an alternate strategy used in manufacturing that can provide much greater flexibility and scalability than a traditional production line. These cells will make up our re-corner production lines, where automated guided vehicles will move the work-in-process product between stations for both automated and manual assembly, as well as sub-assemblies to the lines. There are several advantages to this approach. First, it provides the ability to validate all assembly cells quickly by testing and optimizing one cell and then implementing those best practices across all others, which reduces the time to design and develop additional assembly lines. Second, the module production line is also highly automated and flexible, meaning that we can scale up or down depending on future variants in demand. Finally, assembly cells and production lines can be efficiently lifted and installed at future integration centers, as well as we apply one global standard using the plug-and-play format. We are working with top supply partners on the assembly line and line site controls. This allows us to use cloud-based solutions, giving us complete visibility into all production operations and enabling us to scale manufacturing, both locally and globally, across all integration centers. These integration centers will be linked to our control center, where we can achieve an overarching view and build perspective along with full traceability of our RE solutions. With that, I'll hand over to David Goldberg, RE CFO, to discuss our financial results. David.