Surprise

REE Stock Can Surprise Investors With a Comeback

Are you in the market for a low-priced stock with multi-bagger potential? Consider electric vehicle (EV) systems up-and-comer REE Automotive (NASDAQ:REE). It’s a risky proposition, I’ll concede, as REE stock isn’t doing particularly well in 2021 — but it just might pay off.

electric vehicles charging at a charging station. electric vehicle stocks

Source: Scharfsinn / Shutterstock.com

To give you a quick primer, REE Automotive doesn’t actually manufacture cars. Rather, the company makes REEBoard, a modular system used to hold the battery and other components.

Additionally, the company makes REEcorner: a system designed to hold powertrains, steering and braking within a wheel well. It’s also important to know that REE Automotive is a product of a special purpose acquisition company (SPAC) merger.

As we’ll see, some traders have been putting negative price pressure on the stock. If you’re willing to take a chance on a possible hidden gem in the EV market, though, then let’s see what’s

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Big Automotive Chip Shortage Is No Surprise

“Car Makers Collide With Global Chip Shortage” (Page One, Feb. 13) correctly identifies the auto industry’s current supply-chain woes as a self-inflicted wound. From the electronics-manufacturing industry’s point of view, automotive is mostly a low-volume, high-mix customer segment, and it requires buffering through component distributors. Instead, the auto makers’ extreme focus on cost optimization and lean manufacturing meant eliminating these valuable supply-chain partners. The focus on lean should have been balanced with a pragmatic view on the extreme cost of idled automotive production lines. To shut down production lines for $80,000 vehicles because of a missing $2 microcontroller is catastrophic.

Products like semiconductors that have longer lead times and large production lot sizes need distribution for efficient buffering between the manufacturers and end customers. Semiconductors have extremely long and complex production cycles that can range from 10 to 26 weeks. Once a production cycle

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