Why This Electric Vehicle Stock Crashed 35% Today
Shares of Israeli-based electric vehicle (EV) technology company Ree Automotive (NASDAQ: REE) sank Tuesday as the company filed for a major common-share sale. As of 3 p.m. EDT today, Ree shares were tumbling 35%.
Ree Automotive began trading publicly in July 2021 after merging with a special purpose acquisition company (SPAC). Ree designs and manufactures mobility platforms for EVs and offers several different models for EV companies to build their models based on Ree's platforms.
Like many EV start-ups recently going public through SPACs, Ree's shares have been sliding since its public debut, down about 10% prior to today's session. Ree initially raised about $285 million on the deal, but investors are running scared today after the company said in a Securities and Exchange Commission filing that early shareholders plan to sell up to 30 million shares.
Source Fool.com
