Ree Automotive Is About To Go Public By Merging With The Spac 10X Capital Venture Acquisition Corp Nasdaq Vcvc The Projected Revenue Growth Is Simply Extraordinary

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REE Automotive, a company that designs flat and modular chassis platforms for Class 1 to Class 6 EVs, is about to go public by merging with the Special Purpose Acquisition Company (SPAC), 10X Capital Venture Acquisition Corp. (NASDAQ:VCVC).

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As per the press statement released by REE Automotive and 10X Capital, the combined company is expected to be worth around $3.1 billion and retain access to $500 million in gross proceeds, including a PIPE investment of over $300 million from the likes of Koch Strategic Platforms, Mahindra & Mahindra, and Magna International.

Of course, the star attraction of REE Automotive is its modular EV platforms that utilize over 60 patents and cater to a diverse range of EVs, ranging from Class 1 to Class 6.

The company estimates a Total Addressable Market of over $700 billion. In order to reduce CAPEX requirements, REE Automotive plans to establish a global network of 15 integration centers by 2026, resulting in a total annual capacity of around 0.6 million units per annum.

Of course, one of the most attractive aspects of this merger is REE Automotive’s projected revenue growth. As an illustration, the company is expected to earn around $300 million in revenue in 2023. However, by 2026, this top-line metric is expected to swell to an astonishing $10.4 billion, corresponding to a growth of over 3,300 percent!

Readers should note that Canoo (NASDAQ:GOEV) also specializes in producing a versatile skateboard platform for EVs. However, REE Automotive is building 3 separate platforms as opposed to a single one by Canoo. Moreover, Canoo is targeting a TAM of around $50 billion, while REE Automotive is aiming for a much higher TAM.

Given the attractive nature of REE Automotive’s business plan, it is hardly surprising that 10X Capital shares are surging. In the current pre-market trading session, the stock is up a whopping 45 percent, trading around the $16 per share price level.